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American Morning

Baghdad Kidnappings; Tamiflu Warning; Fixing The Car Business; Healthcare Troubles; Race For '08; Gates Ready For Iraq?; Studio Forces Move

Aired November 14, 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: New warnings about one of the most popular flu drugs and some dangerous behavior which could be linked to it.
SOLEDAD O'BRIEN, CNN ANCHOR: High stakes. Defense Secretary Nominee Robert Gates and the Iran connection. How it could shape U.S. policy in Iraq.

M. O'BRIEN: Rudy in '08? Former New York Mayor Rudy Giuliani lays the groundwork for a presidential campaign.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is Natalia (ph). She's my sister.

(END VIDEO CLIP)

S. O'BRIEN: That's America's number one movie, but it's sparking lawsuits and it's banned in some countries. We'll tell you about the outcry over "Borat" on this AMERICAN MORNING.

Good morning, everybody. Tuesday, November 14th. I'm Soledad O'Brien.

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

Welcome back.

S. O'BRIEN: Thank you.

M. O'BRIEN: Good to have you with us.

S. O'BRIEN: We begin this morning in Iraq. Some breaking news there. Up to 150 people have been kidnapped from a research institute in Baghdad by gunmen who were apparently wearing police uniforms. Let's get right to CNN's Michael Ware. He's live for us in Baghdad this morning.

Good morning, Michael.

MICHAEL WARE, CNN CORRESPONDENT: Good morning, Soledad.

We've just seen Iraq's minister of higher education stand up in parliament, nationally televised, and outline what must be one of the most breathtaking insurgent or militia operations that we've seen for some time. According to the minister, approximately four hours ago, 20 car loads containing as many as 80 gunmen in Iraqi security force uniforms surrounded a research institute here in the center of the capital of Baghdad. These 80 men, on the pretense of coming in on an official mission, according to one report even claiming they had the American ambassador with them, entered the four-story building, sealing it and the streets around it off, going through the building, segregating women from men.

They then took between 100 and 150 men hostage and took them away with them, leaving the women behind, corralled, in a locked room. And that's the latest. As a result, the minister of higher education say that he's now been left with no choice but to close all universities. He's not prepared, he says, to see more professors killed. So he's made official what has been a defacto closure of universities. Since semester opened, students, no professors, have not been attending

Soledad.

S. O'BRIEN: Michael Ware for us in Baghdad this morning with that breaking news.

Thank you, Michael.

Miles.

M. O'BRIEN: Some serious worries this morning about Tamiflu. The popular anti-flu medicine may be prompting some scary side effects.

(BEGIN VIDEOTAPE)

M. O'BRIEN, (voice over): It all started in Japan where Tamiflu is prescribed about four times as often as here in the United States. Japanese officials reporting 103 cases of what they say is abnormal behavior in Tamiflu users. Most of them children. Hallucinations, delirium, other psychiatric effects.

It's unclear if the drug is the cause, but health officials here in the U.S. are not taking any chances. The U.S. Food & Drug Administration is mandating a warning on the Tamiflu label that patients taking it need to be closely monitored. Tamiflu's maker, the Swiss pharmaceutical company Roche, says there's no evidence the drug is behind the psychiatric effects and that the flu itself might be causing the symptoms.

Tamiflu usage in Japan is the highest in the world. Between 2001 and 2005, Tamiflu was prescribed more than 24 million times there. The 103 cases in question in Japan occurred between August of last year and this past July.

In the first six years Tamiflu hit the market, starting in 1999, there were only 126 similar cases of these scary symptoms reported. One of the main reasons health officials are reluctant to discourage patients from taking Tamiflu, it's effectiveness in treating bird flu, which researchers fear could turn into a pandemic should it mutate into a form that can easily be passed from human to human.

(END VIDEOTAPE)

M. O'BRIEN: Also on the medical front this morning, some reason for young women to think twice before ordering that steak. Younger women who eat red meat regularly apparently facing an increased risk of breast cancer. The Harvard study of more than 90,000 women finding the more red meat the women consumed when they were in their 20s, 30s, and 40s, the greater their risk for getting breast cancer. Women who ate more than one and a half servings of red meat per day almost twice as likely to develop breast cancer as those who ate meat three times a week.

Sounds like it's time to call the doctor, doesn't it? Coming a little bit later in the program, Dr. Sanjay Gupta will make a house call for us to put all those stories into some perspective.

Soledad.

S. O'BRIEN: Pedal to the metal for America's big three auto makers. It's going to hit the White House today. They're asking President Bush for help before he leaves on his trip to Asia. White House correspondent Suzanne Malveaux has our report this morning.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: President Bush today is meeting with the leaders of the three big automakers, Ford, General Motors, as well as Chrysler. The White House originally said this meeting was scheduled for May, but they moved it after the elections, they say, not to politicize the agenda.

Now automakers are not happy. They are losing jobs, closing factories, seeing their business go overseas. They want the Bush administration to crack down on China for manipulating its currency and putting them at a disadvantage. The White House is telling the automakers they want to see more fuel efficient vehicles to make Americans less dependent on foreign sources of oil

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

S. O'BRIEN: Let's get right to "New York Times" business reporter Andrew Ross Sorkin for more on this story.

Good morning.

Sounds like kind of there's a deal that could be struck. The White House wants something, obviously the big three want something. What's going to happen?

ANDREW ROSS SORKIN, "THE NEW YORK TIMES": Well, the real story is that it's unclear whether they're going to strike a deal at all. But what they're really there for is to talk about health care costs. These automobile makers are the largest health care providers, really, in the country.

GM, over 1.1 million employees that are getting health care costs and it's costing consumers $1,000 a car in addition because it's passed on to us and that's what this is all about. They want help on the prescription side. You know, we had a deal last week, CVS merging with Caremark. I think there's a lot of questions about things like that. Are these costs going to get passed on to the consumer. Is the $1,000 going to turn into $2,000.

S. O'BRIEN: What do the big three want the White House to do then on that front? What can they do.

SORKIN: I mean this is the age-old question of how can we improve the health care system and how can we take the cost out of the business? I think it's on the prescription side specifically, but I also think they want broader health care coverage. That's what this is all about. If there's a bailout here, that's what they're looking for.

S. O'BRIEN: I read that the big three spend more money on health care costs than they do on steel.

SORKIN: On steel. Unbelievable.

S. O'BRIEN: Yes, that's a shocking figure.

SORKIN: It's a shocking figure and it's clearly what's happening to all the manufacturing companies in this country. The steel makers are having the same issue, as are Wal-Mart. And we've talked about Wal-Mart for years about having health care issues. This is at the fore and they can tell you that they're going to be talking about fuel prices today. But at the end of the day, it's going to be about health care.

S. O'BRIEN: Interesting to see if this is going to be like the tipping point. I mean if you have enough big manufacturers and big employers who say, we need help on the health insurance front at some point.

SORKIN: Well, you would think, but I have to say, we've been sitting here for years having the same conversation and it hasn't happened yet.

S. O'BRIEN: Well, maybe it will.

SORKIN: We'll have to see.

S. O'BRIEN: Andrew Ross Sorkin, thanks. We're going to check in with you throughout the morning.

SORKIN: Thank you.

S. O'BRIEN: Miles.

M. O'BRIEN: Thank you, Soledad. Politics this mornings. Rudy Giuliani apparently headed down the road to a presidential bid. The former New York mayor forming the Rudy Giuliani Presidential Exploratory Committee. Giuliani is popular, the top choice among Republican voters to be the party's nominee in 2008, just ahead of John McCain in our recent CNN poll. Our senior analyst Bill Schneider with more.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN CORRESPONDENT, (voice over): Last week's midterm was the first primary of 2008 and it showed a big market for outsiders who can promise change. That's good news for Rudy Giuliani who took the first step toward a presidential bid. It's good news for any Republican who can speak the language of bipartisanship. Here's one.

SEN. JOHN MCCAIN, (R) ARIZONA: Are we doing the things organizationally and legally that need to be done to prepare for it? Yes.

SCHNEIDER: His strong national security credentials are no small thing after a midterm where Iraq was a big issue. Neither Giuliani nor McCain is particularly trusted by conservatives. Giuliani especially because his positions are more out of line with those of conservatives -- abortion rights, gun control and gay rights.

Do conservatives have a strong contender for 2008? Auditions are open. Senators George Allen and Rick Santorum were once talked about as hot prospects. No more.

Bill Frist was badly tarnished as well after Republicans lost the Senate. Newt Gingrich is also mulling a bid. He's been out of the game long enough that he gets to say, "I told you so."

Mitt Romney's lieutenant governor lost the race to succeed him as governor. But not doing well in Massachusetts could be a plus to Republicans.

It's all about the moment. The Democrats clearly had the moment in 2006, but that doesn't mean it will be there in 2008. In 1994, Republicans had the moment. President Clinton was toast. But two year later, Clinton easily won reelection. The moment had changed.

Bill Schneider, CNN, New York.

(END VIDEOTAPE)

M. O'BRIEN: Republicans nursing their political wounds and plotting their comeback this morning. And Trent Lott is casts his lot to be part of the GOP leadership once again. The Mississippi senator would like to be the minority whip in the new Congress. That's the party's number two position. Lott, you will recall, quit as majority leader in 2002 after making racially insensitive remarks at a birthday party for the late senator Strom Thurmond.

Of course, all the day's political news is available on the CNN ticker any time day or night. It's there for you. Just click on cnn.com/ticker.

S. O'BRIEN: Happening in America this morning.

The city by the bay out of the running to host the 2016 summer Olympics. San Francisco dropping its bid after its football team, the 49ers, broke off talks for a new stadium. That stadium would be needed for the Olympics. So now that leaves Los Angeles and Chicago as the only U.S. cities who are now competing for the games in 2016.

Wal-Mart pulling a t-shirt off its shelves after a complaint from a Maryland blogger. The t-shirt shows this right there, skull and crossbones. The blogger says it's identical to a Nazi SS emblem from World War II.

A close call in Florida when a small plane crash landed near a home in Montana. It scraped a driveway just a few yards from the house. Knocked out the power lines too. The pilot had only minor injuries and nobody else was hurt, thank goodness.

In Houston, a truck overturned on the freeway. It spilled 10 tons of frozen chicken. Police say the driver lost control while he was getting off an exit ramp. The truck fell over the wall. Fell 45 feet, in fact. The driver was killed in that crash.

In Florida, the space shuttle Discovery crew preparing for a scheduled December 7th launch. The seven astronauts are in dress rehearsals for their 12 day mission to the International Space Station. They're going to do a simulated countdown and practice an escape from a launch pad emergency.

M. O'BRIEN: More to come on some of the stories we're following this morning.

A sight for sore eyes for skiers and boarders in Colorado, but drivers, well, they're just plain sore about the mess. There you see it. We'll let you know if there's more of this stuff on the way.

In southern California, opposite problem. The fire's under control, though, now. Now the search for the cause.

And another blow to some Katrina victims. They're about to be uprooted again. It's a plot from Hollywood without a happy ending apparently. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. Some of the top stories we're following for you this morning.

President Bush is hitting the road today. He's on an eight day trip to Asia.

And former New York Mayor Rudy Giuliani is a step closer to running for president in 2008, filing paperwork for a presidential exploratory committee. M. O'BRIEN: That wildfire in southern California under control this morning. About 290 acres burned around Lake Elsinore, California. That's about 70 miles east of Los Angeles. No one was hurt in this file. The cause still under investigation. This fire was about 40 miles from the Esperanza fire. That's the fire, you'll remember, that killed fire firefighters last month. An arson is suspected in that one.

And Rocky Mountain high, I guess. The mountains of Colorado buried under a foot and a half of snow. It's good news for the skiers and the borders, not such good news for people trying to get to those locations. High winds and blowing snow made the driving treacherous. And there's more snow on the way, we're told. Chad Myers has details.

Hello, Chad.

(WEATHER REPORT)

S. O'BRIEN: In a split with his best ally in the world, the British Prime Minister Tony Blair is calling for Iran and Syria to get involved in the search for peace in Iraq. Now President Bush has been resisting those calls and talk of bargaining with Iran is raising some questions about the president's nominee for the secretary of defense, Robert Gates. AMERICAN MORNING's Dan Lothian has more for us this morning. He's in Washington, D.C.

Good morning to you, Dan.

DAN LOTHIAN, CNN CORRESPONDENT: Good morning, Soledad.

Well, President Bush says he's looking forward to interesting ideas in the search for solutions in Iraq, but every step of this process is being closely scrutinized and Robert Gates, past and present, is in the spotlight.

(BEGIN VIDEOTAPE)

LOTHIAN, (voice over): It's a tall order for Secretary of Defense nominee Robert Gates, find a solution for success in Iraq.

LAWRENCE KORB, CENTER FOR AMERICAN PROGRESS: In many ways, the expectations may be to high.

LOTHIAN: With so much at stake, there's no shortage of options.

SEN. CARL LEVIN, (D) MICHIGAN: We should pressure the White House to commence the phased redeployment of U.S. troops from Iraq in four to six months.

LOTHIAN: Timetables are being discussed along with once unthinkable partnerships with countries like Iran and Syria.

TONY BLAIR, BRITISH PRIME MINISTER: A major part of the answer to Iraq lies not in Iraq itself but outside it. LOTHIAN: Gates, fresh from his stent at the Iraq Study Group has perhaps a fresh perspective, but will that make his job any easier? And what can he do that Donald Rumsfeld couldn't?

KORB: He's not going to come in with a world view that Rumsfeld had that, you know, America could basically solve all of the world's problems. Bob Gates will pay more attention to his staff and to the professionals.

LOTHIAN: But Frank Gaffney at the Center for Security Policy says changing the guard doesn't guarantee success.

FRANK GAFFNEY, CENTER FOR SECURITY POLICY: You're going to get some changes, all right, but I think they're going to make things worse, not better.

LOTHIAN: Gaffney says Rumsfeld had a better understanding of the nature of the problem. And there are still lingering questions about Gates' past. Accusations that the former CIA director slanted intelligence on the Soviet Union and contra rebels to support his administration's policy.

LEVIN: The important thing with Mr. Gates is whether or not he is independent, whether or not he's going to speak truth to power.

LOTHIAN: But Gates has always maintained his analysis was honest. Larry Korb at the Center for American Progress agrees.

KORB: That was Gates' view rather than him trying to please his civilian masters.

(END VIDEOTAPE)

LOTHIAN: Some like to point out that while so much attention is being focused on leadership at the Pentagon, the ultimate decision on what happens in Iraq is up to the president. The defense secretary will wield a lot of power but the president makes the call.

Soledad.

S. O'BRIEN: Dan Lothian for us in Washington, D.C., this morning.

Thank you, Dan.

Miles.

M. O'BRIEN: More than a year after Hurricane Katrina and the heartache and uncertainty continues for thousands of people still without homes, living in trailers, and now facing yet another move. It is a plot hatched by Hollywood, born by good intentions, but it is unclear if there'll be a happy ending. Rob Masson of our affiliate WVUE with more.

(BEGIN VIDEOTAPE) ROB MASSON, CNN CORRESPONDENT, (voice over): It's hard to believe, but for hundreds of flood victim, these FEMA trailers are the closest thing to home they've had since the storm.

RICKLYN CHADWICK, RESIDENT: And that's why I'm very angry about this. I mean, we've been through enough.

MASSON: Lift Productions lent this property to FEMA knowing eventually it would need it back.

UNIDENTIFIED MALE: I don't really see it as anything you'd say no to. Someone needs a place to stay and you've got a piece of land that someone wants, you know, to put them on there, I would never say no to that.

MASSON: Now the time has come for Lift to begin driving pilings for one of the biggest projects ever for a local film industry, a $180 million film studio, and trailer residents are now being relocated.

UNIDENTIFIED MALE: Well, they just told us when we get a phone call, we going to have to just move. We don't have a choice.

UNIDENTIFIED MALE: I guess we all would have wished that a year- plus after the hurricane, everyone would be in at least semi-permanent housing by now. But, you know, it's turned into a bigger deal than all of us understood, obviously.

MASSON: Many have had to move three times since the storm.

UNIDENTIFIED FEMALE: It's awful to be pulled (ph) out of high school and then food (ph) that's around here and they're got to relocate the buses and stuff. So it's going to be hard for them.

MASSON: Residents of this trailer park have been put through the ringer. They've tried to make due the best they can, but thought they'd have 18 months here as they try and get their houses livable again.

CHADWICK: And they're going to uproot us again and throw us somewhere else all because of money. And it's not right.

MASSON: Some are being told they'll be relocated to a new trailer sight at UNO.

CHADWICK: And we're looking at like $400, $450 a month just in taxi to get him home because there's no bussing.

MASSON: Others have no idea where they're going.

UNIDENTIFIED FEMALE: Yes, I still have to worry about my mom. She don't have nowhere to go.

MASSON: Lift says it's trying to be accommodating.

UNIDENTIFIED MALE: I really don't want to cause any more trouble and inconvenience to anyone who's had, you know, who's had those issues. I've been happy to let them -- we've been happy to let them use our land.

MASSON: But the new film factory is on a fast track and Lift believes the future of New Orleans, its growing film industry and hundreds of jobs are at stake.

(END VIDEOTAPE)

M. O'BRIEN: That was WVUE's Rob Masson. The movie company says the new studio will bring about 3,000 jobs to the area.

Soledad.

S. O'BRIEN: A quick look at some of the stories -- or a top story that we're watching for you this morning. A story -- that recount in Florida. It's in one Florida congressional district. Apparently electronic voting machines recorded thousands of blank votes. We'll update you on what's happening there straight ahead. We're back in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: Top stories we're looking at for you this morning.

Secretary of State Condoleezza Rice delays her departure for a summit in Vietnam to hold more meetings in Iraq.

San Francisco dropping its bid to host the summer Olympics in 2016 after plans for a new stadium there got derailed by the 49ers move to Silicon Valley. Chicago and Los Angeles the only remaining American contenders for that Olympic bid.

So what do high gas prices have to do with the price of a hamburger. Andrew Ross Sorkin of "The New York Times" "Minding Your Business" this morning.

Good morning, Andrew.

SORKIN: Good morning. How are you?

M. O'BRIEN: Good, thanks.

SORKIN: You wouldn't believe this, but a hamburger is going to get more expensive because your fuel prices are more expensive. And you're thinking, why, right? What's the connection?

M. O'BRIEN: Well, you've got to get the beef to me somehow, right?

SORKIN: Well, that's actually not it.

M. O'BRIEN: That's not it?

SORKIN: That is not it. It's all about corn. As fuel prices have increased, everyone's looking towards ethanol and corn prices through the roof. A 10-year high now. So the corn that was used to feed the cattle, which eventually becomes your hamburger, sad to say, is becoming that much more expensive. And Tyson, which is a producer of chicken and poultry and all sorts of -- and pork and beef, is now saying that prices are going to go through the roof. And as we see in spring and summer, barbecue season, that's when we really should probably see the big price.

M. O'BRIEN: Now is this something that eventually farmers can plant their way out of? Is there enough potential capacity out there?

SORKIN: Well, corn keeps going up in price. It's going up in price across the world because people they there's ethanol in the corn and that's . . .

M. O'BRIEN: There's gold in them there hills.

SORKIN: There's gold in those corn fields. So that's really the issue. And I don't know if they're going to grow their way out of it. So we could see a sustained period of more expensive barbecues basically.

M. O'BRIEN: All right. All right. What else you got going?

SORKIN: A couple things early this morning. The stock market doing better than ever in November. The really continues. The Dow added 23 points yesterday. Nasdaq is also really up this -- not this morning, but yesterday. Intel and Dell both up. And we're looking for tomorrow or this morning, rather, to look at, we're going to see some retail prices index coming in and the producer index price that we're going to be looking for both of those numbers. But a higher opening this morning.

M. O'BRIEN: And should we be worried about these retail prices? I've seen some concern here.

SORKIN: It's going to slip a little bit, but I think it's going to -- I think we're going to do OK. You know, October is not the month, really, to be looking at it. We ought to be looking at November and December. So it's a little too early.

M. O'BRIEN: It's a little early.

All right. What you got next?

SORKIN: We're going to be talking about the Zune. The new Microsoft Zune. The iPod wannabee killer. So we'll see if it's really going to kill the iPod.

M. O'BRIEN: We'll see about that one. Yes, Microsoft has a way of coming in late and doing that, though, don't they.

SORKIN: Sometimes. We'll see.

S. O'BRIEN: I've got that new little iPod. I've got to tell you, I've got that new little iPod that's this big.

SORKIN: Oh, you've got the little guy. The little Shuffle.

S. O'BRIEN: I'm going to bring it up. It's in my office.

SORKIN: It's a thing of beauty, isn't it?

S. O'BRIEN: Oh, me love, me love very much. Right.

Andrew, thanks.

SORKIN: Thank you.

S. O'BRIEN: A quick look at the stories we're following for you this morning.

The shakeup in Congress. We're going to give you the lowdown on just who is vying for some of the top jobs. And then a look at the sites and the sounds from that groundbreaking yesterday of the Martin Luther King Jr. Memorial. That's straight ahead. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Power struggle. The elections are over, but they are still campaigning in Congress. We'll take a look this morning at the players who are now vying for leadership spots in the House and the Senate.

M. O'BRIEN: Presidential tuneup. America's big three automakers meet with the president about Detroit's financial stall.

S. O'BRIEN: And the unforgettable tribute to Dr. Martin Luther King Jr. The sights and sounds from the historic day on the National Mall. Those stories and much more straight ahead on this AMERICAN MORNING.

Welcome, everybody. It's Tuesday, November 14th. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome, everybody. It's Tuesday, November 14th.

I'm Soledad O'Brien.

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

Thanks for being with us.

One week after the midterm election, full speed ahead to the next campaign. Former New York mayor Rudy Giuliani now poised to make a bid for the Oval Office. And new powerbrokers in Congress are elbowing each other for leadership spots.

CNN's Brianna Keilar watching it all from Washington for us.

Brianna, good morning. BRIANNA KEILAR, CNN CORRESPONDENT: Good morning, Miles.

Democrats vote Thursday, Republicans vote Friday to determine who their congressional leaders will be, and with midterm elections behind us, eyes are now turning to presidential contenders.

(BEGIN VIDEOTAPE)

KEILAR (voice over): Former New York may your Rudy Giuliani is taking the first step towards seeking the Republican nomination for president but insists he hasn't decided to run yet.

RUDY GIULIANI, FMR. NEW YORK MAYOR: Whether it's early next year or more in the middle, I can't tell you that yet. But I will be thinking about it quite a bit.

KEILAR: A senior adviser to Republican senator John McCain says McCain is also seriously considering a run for the White House in 2008.

A CNN poll in October asked registered Democrats to choose among a list of possible candidates. Hillary Clinton and Illinois senator Barack Obama topped their picks, but neither has announced nor ruled out they are candidates.

In Congress, shakeups could come in the Republican leadership. In the Senate, former majority leader Trent Lott is eyeing the number two position of minority whip. In the House, current Republican leader John Boehner faces a challenge from Indiana congressman Mike Pense, a leading conservative voice.

Democratic House leader Nancy Pelosi is set to become speaker of the House. She's backing outspoken Iraq war critic John Murtha to become majority leader over her current number two, Steny Hoyer.

STENY HOYER, HOUSE MINORITY WHIP: This does not come as a surprise and, very frankly, I join her in saying that I expect Jack Murtha to continue to be a leader on this very, very important issue of Iraq in the future. But I I'm going to be the majority leader.

(END VIDEOTAPE)

KEILAR: Within Republican Party leadership, RNC chairman Ken Mehlman is planning to step down, and Florida senator Mel Martinez has agreed to take his place -- Miles.

M. O'BRIEN: Brianna Keilar in Washington.

Thank you.

Happening this morning, pedal to the metal. America's big three automakers hit the White House today. They're asking President Bush for help before he lives for Asia.

White House Correspondent Suzanne Malveaux with more.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: President Bush today is meeting with the leaders of the big three automakers: Ford, General Motors, as well as Chrysler. The White House originally said this meeting was scheduled for May, but they moved it after the elections, they say, not to politicize the agenda.

Now, automakers are not happy. They are losing jobs, closing factories, seeing their business go overseas. They want the Bush administration to crack down on China from manipulating its currency and putting them at a disadvantage.

The White House is turning to automakers. They want to see more fuel-efficient vehicles to make Americans less dependent on foreign sources of oil.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

M. O'BRIEN: Just in time for flu season a warning about one of the most popular flu medicines. The government urging warning labels for Tamiflu after concerns overseas about patients' strange behavior and possible hallucinations. Not clear if the behavior is in fact linked to Tamiflu or just another side-effect of the flu itself.

In Florida, recounts are old hat -- or is it old chad? There is another recount under way this morning to determine a very close race for Congress in the Sarasota area after a problem with the electronic voting machines. Republican Vern Buchanan already declaring victory -- Soledad.

S. O'BRIEN: There is a king among presidents. That's the way they're putting it now.

Until now, African-Americans did not have any kind of memorial on the National Mall in Washington, D.C. Martin Luther King Jr., of course, has changed all of that yesterday.

I had a chance to be there as the ground was broken for that memorial. Take a look at some of the sights and the sounds.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The King Memorial will span a piece of ground between the Jefferson and Lincoln memorials. And by its presence in this place, it will unite the men who declared the promise of America and defended the promise of America with the man who redeemed the promise of America.

(APPLAUSE)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: The monument, however beautiful it turns out to be, will be but a physical manifestation of the monument already constructed in the lives and hearts of millions of Americans who are more just, more decent, more successful, more perfect because he lived.

OPRAH WINFREY, TALK SHOW HOST: My life wouldn't be what it is without Dr. King. If there had not been a civil rights movement, there couldn't be me sitting on television every day speaking to millions of people. So I owe him, and I owe him not just to come to a memorial service, but I owe him to live the dream. And I think I'm doing a pretty good job of it.

SEN. BARACK OBAMA (D), ILLINOIS: We have made enormous promise, but we haven't yet arrived at the promised land, which just reminds us that we have more work to do.

S. O'BRIEN: From the humble beginnings of a family in the American welfare system, to one of the most celebrated stories and successful duos in music history, these women know what it means to never give up and to always have hope. Here to sing one of their biggest hits and a song that speaks to the power of love, understanding, and peace, police welcome Wynonna and Naomi, The Judds.

(SINGING)

NAOMI JUDD, SINGER: It's all we need, his hope, his spiritual optimism.

WYNONNA JUDD, SINGER: And the greatest of these is love, and that's what today is about.

ANDREW YOUNG, CIVIL RIGHTS ACTIVIST: As we turn these shovels, we're just beginning to turn the dirt. And as we turn the dirt on this ground, let us go back to our communities and turn the dirt and provide a clean and pure lifestyle for our children and get rid of the crime, bring forward the wisdom and truth. And let us make sure we keep on turning the dirt in Martin Luther King's name.

(END VIDEOTAPE)

S. O'BRIEN: Oh, it was such a nice ceremony.

M. O'BRIEN: Wow, what a moment there with Andrew Young and Jesse Jackson. Truly an emotional moment.

S. O'BRIEN: Yes. And in the front in a wheelchair is Dorothy Hite, who's 94 years old, one of the leaders of the civil rights movement. I mean, how remarkable was that?

The weather was not the greatest, as you well, know...

M. O'BRIEN: Yes.

S. O'BRIEN: ... but it was really wonderful. And Phoebe Winans sang and The Judds were amazing.

M. O'BRIEN: What a great mix of emotion and really a sense of history there.

S. O'BRIEN: Yes, no question. M. O'BRIEN: And you're very fortunate and honored and deserving of that.

S. O'BRIEN: Oh, I was -- I was -- I was just happy. I was, like, Phoebe Winans, Oprah. Oprah says she watches AMERICAN MORNING when she's on her treadmill. So I said I'd send a little shout-out.

M. O'BRIEN: Shout-out to Oprah.

S. O'BRIEN: Keep going. Another mile, Oprah.

M. O'BRIEN: Keep going there, girl. Keep going.

S. O'BRIEN: It was a lot of fun. It was great. It was great.

M. O'BRIEN: All right. Well, great job. Great job.

S. O'BRIEN: Oh, thanks.

M. O'BRIEN: More to come on the stories we're following this morning.

Following flowing tap water. It's something we all take for granted. We'll take you to a place where they're struggling to survive on two cups of water per day.

In Florida, a school lockdown and a daylong standoff with police.

And Wal-Mart red-faced after selling T-shirts with images tied to Nazis.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening "In America" this morning, in Commerce City, Colorado, a high school evacuated after reports of a chemical in a hallway. The fire marshal says it was either pepper spray or something else that irritates the eyes. Students were out for 90 minutes. The school is investigating just who was to blame.

In Homestead, Florida, a police standoff forced a lockdown at a nearby school. The standoff lasted nine hours. The police shot and killed a man who had barricaded himself in a house that had fired shots at officers.

In West Virginia, four hostages overtook their captors during a suicide attempt on a pharmacy. The deputy said the suspect, Jeffrey Harvey (ph), fired four shots, demanded drugs. The hostages were able to take Harvey (ph) down after he took painkillers, anti-anxiety drugs.

He was sort of out of it. They took him over.

In Los Angeles, a man punched by police in a videotape beating is now telling his side of the story. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They paid for what they did to me because I didn't do nothing.

UNIDENTIFIED MALE: So you say you were not resisting arrest in any way?

UNIDENTIFIED MALE: I wasn't resisting arrest. The only time I resisted is when I ran. But when I stopped, I was compliant with them, but they started giving me blows left and right. I couldn't breathe.

They just kept hitting and hitting me. So...

UNIDENTIFIED MALE: When you were on the ground, you weren't resisting arrest?

UNIDENTIFIED MALE: I was moving around because I can't breathe. Do you know how hard it is to breathe with pepper spray?

(END VIDEO CLIP)

S. O'BRIEN: LAPD is now investigating the officers' conduct. The FBI is also involved.

M. O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.

(BEGIN VIDEOTAPE)

SETH DOANE, CNN CORRESPONDENT: I'm Seth Doane, in New Delhi, working on a story about India's water crisis. Ironically, against the backdrop of the technologically advanced country, with IT and outsourcing, you have a government here struggling to provide its citizens with the basics, like fresh drinking water.

We've spoken with middle class families even here in the capital city, Delhi, who tell us they don't receive water 24 hours a day. In fact, they're lucky to get it for 15 minutes. The World Bank ranks India among the worst countries in the world when it comes to water infrastructure.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: This is Jaime FlorCruz in Beijing, where U.S. Commerce Secretary Carlos Gutierrrez is pressing China to open its markets, buy more U.S. goods and services, and help narrow the U.S. trade deficit with China. This year's trade deficit is projected to reach $200 billion, which is politically and economically unsustainable. Gutierrez is also pressing China to stop piracy of U.S. intellectual property, including DVDs and computer software, which is costing U.S. businesses something like $2 billion a year.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: I'm Paula Newton in London, where they're preparing for the premier of "Casino Royale." Even the queen will be here to see a new James Bond premier.

Daniel Craig takes the reins as a new special agent who will have fewer gadgets and more grit (ph). Producers say this is the James Bond that makes mistakes, bleeds, even falls in love. But promoters are keen to keep this franchise going. It is a multibillion-dollar moneymaker, and they're hoping this new James Bond keeps them coming in the movie theaters.

(END VIDEOTAPE)

M. O'BRIEN: For more on these or any of our top stories, log on to our Web site, CNN.com.

Firefighters in southern California savoring a victory this morning after dousing that wildfire near Lake Elsinore. About 290 acres were burned since it started Sunday afternoon about 70 miles east of Los Angeles.

No one was hurt. The cause unknown.

This fire about 40 miles from last month's Esperanza Fire which killed five firefighters. Arson's suspected there.

And the mountains of Colorado hit with up to 18 inches of snow. Good news for skiers and boarders, not such good news for travelers. High winds and blowing snow made driving treacherous. The National Weather Service says more snow is on the way.

S. O'BRIEN: Forty-four minutes past the hour. If you're about to head out the door, let's check in with Chad for a look at the traveler's forecast.

Good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Hi, Soledad.

(WEATHER REPORT)

S. O'BRIEN: Some of the stories we're following for you this morning.

A truck plunging 45 feet off a freeway exit ramp spills tons and tons of frozen chicken. We'll tell you what happened there.

And the dream is over for San Francisco. The city says its new stadium nightmare with the 49ers football team doomed with the bid.

Those stories, much more ahead.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Welcome back. Let's take a look at the grid, some of the feeds we're following for you this morning.

Take a look at APTN. That's some video that's being fed in from Baghdad.

That's the scene of the daring broad daylight kidnapping at the education ministry there. Between 100 and 150 people kidnapped, 20 cars encircling that area. We're following that story for you.

As a matter of fact, incoming 20, that's our -- we call that the back hall. That's our live location in Baghdad. We'll be hearing from Michael Ware there in just a few moments.

Going up to incoming, Dean (ph), take a look. This is the scene in Colorado. Eighteen inches of snow on the ground.

The folks who like the winter sports there liking it. Getting to the place to do the winter sports is a problem. More snow on the way.

Take a look at the weather map up there. Got some -- look at all that blue. That's more snow headed in toward Colorado.

Finally, over here on incoming 85, the USS stick in the mud. I'm sorry, the USS Intrepid still there, Pier 86.

Navy divers will go down today and try to assess the berm of mud that has caught up behind the propellers there. They describe it as like a snowplow. It's kind of a speed bump.

They'll dredge and try to remove those propellers, get the USS Intrepid out of there. For now, still stuck in the mud -- Soledad.

S. O'BRIEN: In hindsight, that makes a lot of sense, that there would be a lot of mud after 24 years.

M. O'BRIEN: In hindsight a lot of things make -- a lot of things make a lot of sense to me.

S. O'BRIEN: Yes. That's kind of a mess. All right. Miles, thanks.

Here's a look at what's happening "In America" this morning.

No more Olympic dreams for San Francisco. That city bowed out of a race to host the 2016 summer Olympics. That comes after the 49ers broke off talks with the city about a new stadium they'd need to play in, but also for the games. L.A. and Chicago now the only U.S. cities that are left in the running for the 2016 Olympics. Wal-Mart now pulling a controversial T-shirt off its shelves. The Maryland blogger complained that the image on the T-shirt -- that is the image right there, the skull and cross bones -- is identical to a Nazi SS emblem from World War II. Wal-Mart says they didn't know the origin of the image until the blog surfaced.

A small plane crashed close to home in Rancana (ph), Florida. Missed a home actually only by a few yards. Take a look at these pictures. The pilot scraped the driveway, knocked out some power lines. Only minor injuries there, thank goodness, and nobody else was hurt.

Houston, a truck driver killed in a crash that sent 10 tons of frozen chickens spilling onto the freeway. You can see all that chicken there piled up on the right side of your screen. Police say the driver lost control while he was getting off an exit ramp, probably going a little bit too fast. The truck fell over the wall, fell 45 feet.

In Florida, the space shuttle Discovery crew prepping for its scheduled December 7th launch. The seven astronauts are in dress rehearsals for their 12-day mission to the International Space Station. They do a simulated countdown, practice escape from any kind of launch pad emergency as well.

M. O'BRIEN: Some other stories we're working on for you this morning.

A tattoo taboo, young Jews bucking their religion's rules.

A new study this morning about driver blind spots. Critical information for parents of young children. And if you have an SUV, you're going to want to stay tuned for this one.

And a health alert. The risk for breast cancer can double if you eat a certain food.

We'll tell you all about that ahead.

(COMMERCIAL BREAK)

M. O'BRIEN: All right. Listen up, iPod lovers. There's some competition on the block.

(BUSINESS REPORT)

S. O'BRIEN: Here's a look at some of the top stories we're looking at at CNN.com this morning.

(BEGIN VIDEOTAPE)

S. O'BRIEN (voice over): Out with the old, in with the new. The government looking to overhaul the exam that immigrants take to become U.S. citizens. The new test will include fewer multiple choice questions and more theoretical ones like "Explain the Bill of Rights," or "Describe what democracy means." The new test is set to debut in 2008.

Archaeologists are talking about the treasures tucked away on a Roman ship. The boat sank about 2,000 years ago off the southeastern coast of Spain. It was carrying rare fish considered delicacy by wealthy Romans. And divers recently discovered the bones of those fish perfectly preserved in clay jars. That discovery provides new insights into the appetites of ancient Romans.

Microsoft founder Bill Gates is praising America's colleges and universities, but he says primary and secondary schools are failing. Gates says two things would help in the short term: better pay for teachers and more science courses for high school students.

For more on these stories, go right to our Web site at CNN.com.

The next hour of AMERICAN MORNING begins right now.

(END VIDEOTAPE)

S. O'BRIEN: And we begin with breaking news. More than a hundred people kidnapped at gunpoint in Iraq. We're live in Baghdad with the very latest.

M. O'BRIEN: Rudy for president? New York's former mayor laid the groundwork for a presidential bid in 2008.

S. O'BRIEN: And a health alert. New research shows a troubling link between red meat and breast cancer.

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