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American Morning
Stimulus Plan Near; Rice Weighs in: U.S. Economy is Resilient; Rollercoaster Ride for the Dow; Death of Heath Ledger: No Illegal Drugs Found; Fight for Florida: It's the Economy
Aired January 24, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: From Wall Street to Main Street, Ali Velshi in the Election Express rolling to Little Rock on this AMERICAN MORNING.
A lot going on this Thursday, January 24th. Glad you're with us. I'm Kiran Chetry.
JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts. Ali Velshi seeing an awful lot of the country.
CHETRY: He sure is.
ROBERTS: You know, I'm envious of him. I'd love to see the country on that bus.
CHETRY: But you haven't seen your share in the past months doing a lot of traveling as well.
ROBERTS: I haven't seen you on the big bus, though. That's the way to see this country.
Hey, just two days before the Democratic primary in South Carolina, we're hearing more from Bill Clinton and his wife, the candidate, it seems. Hillary Clinton returns to South Carolina today after campaigning last night in New Jersey. She has been concentrating on the Super Tuesday states that come up on February the 5th.
Bill Clinton, meanwhile, lashed out yesterday in response to a question from CNN's Jessica Yellin, about the racial back and forth with the Obama camp. She asked him about a charge the former South Carolina Democratic chairman made, that Clinton's tactics are similar to those of the infamous Republican operative Lee Atwater.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: They're feeding you this because I know this is what you want to cover. This is what you live for. But this hurts the people of South Carolina. Because the people of South Carolina come to these meetings and asking questions about what they care about. And what they care about is not going to be in the news coverage tonight because you don't care about it. What you care about is this.
And the Obama people know that, so they just spin you up on this and you happily go along. The people don't care about this. They never ask about it, and you are determined to take this election away from them. That's not right.
(END VIDEO CLIP)
ROBERTS: In fact, Jessica reports that Bill Clinton got at least three questions on the topic of race during campaign events yesterday. We're going to be speaking with Yellin coming up at our next hour. We'll take a closer look at that race issue what Bill Clinton has been saying about it on the campaign trail and what South Carolina voters have been saying to him.
We heard from Hillary's husband. Now, Barack Obama's wife is weighing in on the race, weighing in on race in the race. Here's what Michelle Obama said to a local North Carolina reporter yesterday.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, CANDIDATE'S WIFE: Our belief is that the decision of who will be the next president will not be based solely on race or gender. You know, my deep hope is that people will base their decision on who they think they can trust, who's got a vision for the country. Who's bringing a different tone, you know, to politics and who's going to really take this country in a different direction. And quite frankly, I think the only person that comes close to that is Barack, and he happens to be a black man.
(END VIDEO CLIP)
ROBERTS: Today was Michelle Obama's first day of a four-day campaign swing through South Carolina ahead of Saturday's primary.
With the Clinton and Obama camps slinging mud at each other, the number three democrat, John Edwards, says he's proud to represent the "grownup" wing of the Democratic Party. Last night on CNN's Election Center, I asked Edwards about the slash and burn tactics that seem to dominate this week's South Carolina debate.
(BEGIN VIDEO CLIP)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I think there were moments when the debate got into petty and personal. As opposed to -- there's nothing wrong with making distinctions on issues. That's perfectly legitimate, and we all do that. But when it becomes personal and petty, we're not moving things forward and we're not talking about the things that affect people's lives.
(END VIDEO CLIP)
ROBERTS: Edwards says talking about things that affect people's lives is what Americans expect from their president. The former senator from North Carolina is counting on a good showing in Saturday's primary in South Carolina. That's the state, by the way, where he was born -- Kiran.
CHETRY: Well, there's some big news about the economy this morning as well. President Bush and Congress close to a final agreement on what's being called a massive stimulus plan. Treasury Secretary Henry Paulson and members worked into the night. They are still negotiating the numbers. Americans could get $96.5 billion in tax rebates. It's about two-thirds of what President Bush says it will take to jump-start the economy, but again, aides caution the numbers were the subject of intense negotiations.
And New York City Mayor Michael Bloomberg is speaking out about that plan. He was at the U.S. Conference of Mayors, which was held in Washington D.C.. He's being honored for his environmental work. But the mayor addressed the stimulus package, calling it short-sighted and too little too late.
(BEGIN VIDEO CLIP)
MAYOR MICHAEL BLOOMBERG (I), NEW YORK: They spent most of this past decade when things were good, running up bills with reckless abandon. And when the economy started heading for the ditch, the special interest giveaways got even bigger. I think they ate the seed corn without worrying about next year's crop.
(END VIDEO CLIP)
CHETRY: Well, Bloomberg has dismissed a third party run for president, though. There is speculation, though, that he will not decide until he sees which candidates are left standing after Super Tuesday.
Secretary of State Condoleezza Rice also weighing in. Speaking at the Economic Forum in Switzerland, Rice says that President Bush's stimulus plan will shore up the economy because it puts more money back in the pockets of Americans, and that will boost consumer spending.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: If you were the conductor, long-term economic fundamentals are healthy. The United States continues to welcome foreign investment and free trade. And the economy, our economy, will remain a leading engine of global economic growth.
(END VIDEO CLIP)
CHETRY: Her comments come as world leaders at the forum worry the U.S. is in a recession and that could affect the global economy.
ROBERTS: Coming up now to five minutes after the hour. Let's see if the stimulus plan news is stimulating markets overseas. Right now, London's FTSE is trading sharply up. Yesterday's big game by the Dow helped most of the Asian and pacific markets overnight. But Hong Kong's Hang Seng plunged 550 points after news of a $5 billion a fraud charge at a French bank.
The Dow's rollercoaster ride had some on Wall Street feeling a little uneasy as 600 points swing yesterday, down 300, and closing up 300 points. Our senior business correspondent Ali Velshi is on the "Financial Security Watch" this morning. He's aboard the CNN Election Express this morning, stopping in Little Rock, Arkansas. Ali joins us now. Got a little bit of whiplash this morning, Ali, from what happened yesterday on Wall Street.
ALI VELSHI, CNN CORRESPONDENT: Unbelievable. That is a huge move, John. You're right. We were down more than 300 points, ended higher by almost 300 points. Now, let me tell you. A lot of people are saying, is that it? Is it over? Are we starting again?
This is very typical of a bear market or a rough market. You see these massive ups and downs -- the swings. Because what's going on is that people who've been betting against the market, when stocks start to go up a little bit, they have to get out of their position. That's called short selling. That's what we saw yesterday. Short-covering in financial stocks and retail stocks.
It doesn't mean that the market is turning back up. This economic stimulus, the market, the Fed rate cut earlier this week, it's got everybody talking. We already knew that people were interested in the economy. It was their main concern about the economy.
But on this road trip starting in Myrtle Beach in South Carolina, where I left you on Tuesday, heading toward California in six days, through nine states and 2,600 miles, we are stopping in all sorts of towns and talking to Americans, and the economy does remain their number one issue. They are concerned about jobs. They're very concerned about these rebates. Some say it's a great idea that the government gives people money. Some say that it's not such a good idea.
Let's tell you what happened on the Dow yesterday. We had a very strong day, the strongest day on the Dow and the S&P 500 since November. But these markets have taken a beating. The Nasdaq is in a bear market. It is off 20 percent from its highs back in October. Even this morning with that news overseas and the strong markets, Dow futures are still pointing lower. Not in triple digits right now, which is new to us. I mean, this has been quite a ride. But it's still pointing lower.
We got a lot of conversations, John, with a lot of people across the country, and we'll tell you over the course of the next few hours what they have been telling us. There is one piece of news that we're waiting to confirm right now. It's being reported by the "Wall Street Journal." That Ford is getting ready for more cuts possibly up to 13,000, and they could be announced as early as today. We have gone through January after January, where there have been cuts in Detroit, in the auto industry. It's those layoffs across the country, and we've talked to people about them here, too, that have people worried about their jobs in the future, John.
ROBERTS: That certainly wouldn't be good news. Ali Velshi for us this morning in Little Rock. And we'll be checking back in with Ali aboard the Election Express a little bit later on this morning -- Kiran. CHETRY: All right. Well, there some new details this morning about the moments immediately after actor Heath Ledger was discovered dead in his New York City apartment. Police are revising their story as more information comes out and as they talk to more people who were there. There's also word of phone calls that were made by the masseuse who found him in his bed, to another celebrity, Mary Kate Olsen. AMERICAN MORNING's Alina Cho has been gathering details for us this morning, and she joins me now with more.
Good morning, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey there, Kiran. Good morning to you. It could be another two weeks before we know the exact cause of death. An autopsy performed on Wednesday was inconclusive. More toxicology tests are being done, and it's going to be a while before we get those results.
Now, police do confirm that six different types of prescription drugs were found inside the actor's Manhattan apartment, including sleeping pills and anti-anxiety medication, but nothing illegal.
(BEGIN VIDEO CLIP)
RAYMOND KELLY, NYPD COMMISSIONER: There was another issue as to whether or not there were any illegal drugs found, that's' not the case. They were no illegal drugs found. There were prescription bottles. All of the pills were in the bottle. There was some report that they were strewn. That's not the case. The bottles were capped. There were sealed.
(END VIDEO CLIP)
CHETRY: Police also tested a rolled up $20 bill that was found inside the apartment, but there was no drug residue on it. Of course, you're looking now at 421 Broom Street. That's where the actor's body was found on his fourth floor full floor apartment.
We are also now getting more information about the timeline as a makeshift memorial set up there. Lots of fans leaving flowers, paying their respects. But we're learning Ledger's housekeeper arrived at 12:30 p.m. She let herself in. That's the woman on the left there. She even went inside Ledger's bedroom to change a light bulb in the adjoining bathroom. 2:45 p.m., the actor's masseuse arrived, set up her massage table, even shook him to wake him up. Now, when that didn't work, she actually used Ledger's cell phone to call his friend, actress Mary Kate Olsen.
And, in fact, she called her twice before calling 911. One report said the masseuse was trying to avoid a "media circus." 3:26, more than 10 minutes after the first call to Mary Kate Olsen, the masseuse finally calls 911. She tried CPR while she's on the phone. Seven minutes later, the fire department arrives. Authorities used a defibrillator, and Ledger is pronounced dead three minutes later at 3:36 p.m.
Kiran, obviously, a big, big tragedy in Hollywood. How he died is still a mystery. But remember, this is a young actor, just 28 years old, compared to Marlon Brando, Sean Penn. Just a tragedy. But again, it's going to be another 10 to 14 days before we know the exact cause of death.
CHETRY: Yes. The headlines all over the local papers, they're making a lot about those phone calls that were made. I think police said that they believed that he had died well before that. But still a lot of questions.
CHO: Around 1:00 p.m., they believe at this point. Of course, everything is still preliminary. But remember, authorities now, Kiran, are saying, there was no suicide note. There were no signs of foul play. It's been widely reported, and there's been wide speculation that he may have overdosed on sleeping pills. But it's going to be another two weeks before we know for sure. Everybody knows by now that he suffered from insomnia...
CHETRY: Right.
CHO: ... and Ambien was among the drugs found. Six different types of prescription drugs found inside the apartment.
CHETRY: Alina Cho, thank you.
CHO: You bet.
ROBERTS: Heavy rain and snow slamming parts of southern California. Nearly a foot of snow reported northwest of Los Angeles. Interstate 5 and Grapevine was shut down, ice covering the freeway, stranding hundreds of drivers. A flood warning posted for the Malibu areas burned by recent wildfires. Rob Marciano is at our weather update desk this morning for us tracking this extreme weather. Snow in California near the coast, how rare is that, Rob?
ROB MARCIANO, AMERICAN MORNING METEOROLOGIST: Well, it's -- they get it a couple times a year, John, but they don't get it to this extent. And we're talking about a couple feet of snow that close to the beach in Santa Barbara. That is certainly an extraordinary event and that Grapevine over the five passer just north of Los Angeles does get snow but, again, a tremendous amount. We've got stranded motorists because of it.
Satellite picture, take a look. Here's the storm. It's right here and it's really -- you can see it's not really moving. It's just sitting and spinning just off the coastline of San Francisco. So with that comes the moisture and we see quite a bit of it, not only across southern California but up to no Cal as well.
Here's your radar turn into snow at the higher elevations. There are some brighter colors showing up which indicates that we're getting the cold air a lot so some convection. Some thunderstorms are possible today. As a matter of fact, we had a tornado warning issued just off the beach in Santa Barbara early this morning. That has been allowed to expire. No reports of whether on not that actually touched down. We still have winter storm warnings up for the mountains. To the north of Los Angeles there for a few more inches of snow expected today, blowing snow advisories. And then, of course, the Grapevine here across the I-5 still remains closed and hope to get that under control later on today.
The other issue is the potential for freezing rain along north Texas. We'll watch this storm develop as we go through the next 24 to 36 hours. John, back up to you.
ROBERTS: Rob, thanks very much. We'll check back in with you.
The high stakes presidential race in Florida. Can John McCain cement his status as the Republican frontrunner, and can Rudy Giuliani stay alive after devoting nearly all his time to that state? Coming up, we're taking the polls of Florida voters.
And it's a cross between a space shuttle and a corporate jet. Richard Branson unveils his latest toy. We'll tell you what it is and how much a ride on it will cost, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. We have some incredible shots to show you on our "Quick Hits" now. A three family home wiped out by fire. Crews were racing to this inferno. It was in Wister (ph), Massachusetts. They say the flames swallowed the building in a matter of minutes. But, thank goodness, there was no one inside. It also damaged a nearby home. Everyone was able to get out there as well. One firefighter had to go to the hospital, but he is expected to be OK.
There's a shot of a car just floating in a frozen pond. This happened in Springdale, Ohio. Police say the driver thought she was driving on to a parking lot. Instead, she skidded on a patch of ice and, there you see it, lost control, ended up in the middle of that pond. Police say that she crawled out through the back seat, got out safely. The car, though, did sink into the water.
And for 200,000 bucks, you can book a space vacation. Virgin Galactic unveiling a model of Spaceship Two. Now, there's a look at it right there. That's what you would ride on for 200,000 bucks. It would take the first paying passengers into space on a regular basis.
This is the brainchild of billionaire Richard Branson. He says test flights are going to begin later this year. Virgin Atlantic says it already has 200 prospective space tourists willing to shell out money for the ride. Because technically, if you think about it, John, that's a discount. They were saying it would cost billions to go into space.
ROBERTS: The big question, though, would you arrive on time? Or would it be delayed? I don't know.
For Republicans right now, the most valuable real estate is in Florida. The economy is the primary issue there. Florida voters go to the polls on Tuesday. John McCain, Mitt Romney, Mike Huckabee, Rudy Giuliani -- all stumping across the state and the candidates have a debate scheduled for tonight. Joining us now from Tampa is Bill Adair. He's the Washington Bureau chief for the "St. Petersburg Times." Also, editor of "Politifact.com" and we run the statement through the truth meter from time to time. The debate tonight, what are the issues that you expect, Bill, are going to be of most importance to Floridians?
BILL ADAIR, EDITOR, POLITIFACT.COM: Well, I think, for all the talk about the economy, I don't think that the candidates have yet really differentiated themselves on that issue yet.
ROBERTS: Yes.
ADAIR: So I think what you're going to see is a lot of attacks. I think they're going to be going after Romney to portray him as a flip-flopper. I think McCain and Giuliani want the headline tomorrow to be candidates say Romney is a flip-flopper.
ROBERTS: Yes.
ADAIR: I think you'll see Romney going after McCain for voting against the Bush tax cuts. And so, I think they're going to try to tell Floridians that they are the better conservative candidate and that their approach on the economy, which is going to involve tax cuts inevitably is better.
ROBERTS: "St. Petersburg Times" has got a new poll out. Let's take a look at the issues. Thirty-eight percent responded and say that the economy is the number one issue. Nineteen percent say Iraq. Only 13 percent say immigration, controlling illegal immigration. Why is it not a huge issue there in Florida? You would think it would be a big one with the influx of people from Cuba, Haiti, elsewhere?
ADAIR: Well, but exactly, I think it's because Florida has so many immigrants, particularly in south Florida. It doesn't play the way it does in other states with Republican voters. In other states with Republican voters, there's much more emphasis on being tougher on immigration and stricter enforcement and things like that.
ROBERTS: Yes.
ADAIR: And it's a very different atmosphere in south Florida and there's much more support for the McCain- Martinez approach which provided a path to citizenship. And so, that's not the big issue. It's the economy and it's conservative values and tax cuts.
ROBERTS: Well, I mean, not just on the immigration issue but McCain finding friendly territory there in Florida on a lot of other issues. Let's take a look at your preferential numbers here.
McCain leading with 25 percent. Mitt Romney close behind at 23. That's within the margin of error, and that's a two-man race. Giuliani back at 15 percent, tied with Huckabee. What happened to Giuliani? Florida was his firewall? ADAIR: It is really striking. I mean, Rudy has fallen like the Dow Jones Industrial Average. If you look at where he was in our last poll in November, he was up by 17 points or something like that. And what's happened is he gambled on Florida and put all of his chips on Florida, and it's beginning to look like he gambled wrong. He was counting that there would be this kind of muddle among the Republican frontrunners. But what he miscalculated on is that McCain and Romney and Huckabee all come with some momentum into Florida because they won other states.
ROBERTS: Oh, yes.
ADAIR: And Rudy doesn't have momentum. And so, there's a question, I think, in the minds of many Florida voters about his viability.
ROBERTS: Yes.
ADAIR: Here's a guy who only polled in single digits in some of those states, and I think Florida voters aren't sure that he's viable.
ROBERTS: Yes. He says he's expecting a late surge. He was on "LARRY KING LIVE" last night. Listen to what he said about that.
(BEGIN VIDEO CLIP)
RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: I'm not surprised at all that the polls are very close. We think they're all going to break over the weekend. We're working very, very hard to get our message out of major tax reduction as a way of stimulating the economy.
(END VIDEO CLIP)
ROBERTS: So he says he expects the polls to break his way. But he doesn't need a break, he needs a tidal wave. Can he get it?
ADAIR: Yes, I think he's got a real uphill battle. And he's been -- what he does have that McCain hasn't had as much of is money and so Rudy has been advertising a lot here, as has Romney. But I'm not sure that he can make up that kind of ground between now and Tuesday. And so, I think tonight in the debate, I think you'll see him on the attack against both Romney and McCain in trying to slow their momentum and bring himself back. But, it's going to be an uphill battle.
ROBERTS: Time is definitely growing short as well. Bill Adair from the "St. Petersburg Times." Bill, always good to see you. Thanks for joining us this morning.
ADAIR: Thanks, John.
ROBERTS: And you want to stick around this morning because Republican presidential hopeful John McCain joins us in our 8:00 hour here on AMERICAN MORNING. And a reminder that our political coverage continues in primetime. Join me and Soledad O'Brien tonight at 8:00 Eastern for CNN's Election Center -- Kiran.
CHETRY: Well, Detroit's mayor in a major love scandal this morning after a newly revealed text messages to a top aide surfaced. Could those steamy texts get him in trouble?
Also, the entire teaching staff at one Cincinnati school fired after the kids' tested poorly. The principal gone. The curriculum, also out the door. So is a clean slate the only way to improve their learning, or is the punishment too harsh. We're going to take a look at that story ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. The entire staff at one school in Cincinnati all looking for new jobs this morning. The principal and the teachers at Taft Elementary School were all fired, and they wiped out the curriculum as well. The school district said they had no choice. Efforts to raise test scores at the school were not working, so they say they need it to make a change to try to comply with the no child left behind act and the testing that comes with it. It came as a surprise to some parents.
(BEGIN VIDEO CLIP)
MAXINE MILNER, PARENT: I had no idea that they were going to do it. So I was upset about that because I do like her teacher, too.
Perhaps, they need to look at some incentives to get the best of the best minds to come into the preschools to work with our children.
(END VIDEO CLIP)
CHETRY: The Teachers' Union president hopes that a new curriculum will attract new students and better teachers although they are allowing the fired teachers to reapply for their jobs. It brings us to this morning's "Quick Vote" question.
Many people say that education -- top of mind as they're deciding who to choose for president. Do you think the presidential candidates are doing enough to address problems with education? Cast your vote -- CNN.com/am. Answer yes or no. And we'll get a tally of the first votes coming up a little later in the hour.
ROBERTS: And I know a lot of folks who work in education. They say we're just not hearing anything from these people. It's like it doesn't exist.
CHETRY: Right.
ROBERTS: So --
CHETRY: It's a tough situation. There's also schools in the Cincinnati area as well, who have been held up as models of ways that they've made vast improvements, though. And I suppose individual districts really makes the difference. ROBERTS: Yes. That's the problem. You get some schools that are excelling and others that are failing, you know. And they're not just miles away from each other as well. Well, we'll see what people say this morning. I'm not trying to influence your voting, of course, here.
Detroit's mayor rocked by scandal this morning. Steamy text messages sent to a top aide despite both telling a judge that there was no romantic relationship. What the note said coming up.
And what was she smoking? A video that could get singer Amy Winehouse in deep trouble. That's story and today's headlines when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
JOHN ROBERTS, CNN ANCHOR: And good morning. It's Thursday, January the 24th. I'm John Roberts. Go, yes you go.
KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry. We have a lot going on this morning, including what a roller coaster. We say that, but yesterday it was really a roller coaster on Wall Street. Dipping down 300, back up by the end of the day.
ROBERTS: Makes your head snapping back and forth like that. It's bound to upset anybody.
CHETRY: Right. It makes you want to hit the road which is exactly what Ali did. We'll check in with him in a second.
But stocks trading up in most parts of the world, including a major boosts from London, the Footsie, opening with a 125 point gain and right now is still trading up. Yesterday's big gain by the Dow didn't help most of the Asian and Pacific markets overnight. But Hong Kong's Hang Seng plunged nearly 2.5 percent after news of a $5 billion fraud charge at a French bank.
Meanwhile, talk of the economic stimulus package. What will it look like and they're still in negotiations.
Treasury secretary Henry Paulson and members of Congress worked into the night. They're still trying to hammer out the final numbers. But Americans could see $9.5 billion in tax rebates. Its about two- thirds of what the president says is needed to jump-start the economy.
So how is the economic trouble affecting people in the key battle states in this election year? Our senior business correspondent, Ali Velshi making his way across the country aboard the Election Express and he's been talking to people along the way. Yesterday, he was in Atlanta. Today, he's in Arkansas. And now, he joins us live from the state capitol in Little Rock.
Hey, Ali, good morning.
ALI VELSHI, CNN CORRESPONDENT: Good morning, Kiran. It is excellent to be out here and actually talking to people about what part of the economy worries them most. What they want the candidates to do and what they'd like the president to do right now. News of these market gyrations of the Fed rate cut, of the economic stimulus package that makes it down to the most remote places.
Everybody is talking about it and they've all got some ideas. We spoke to one gentleman yesterday who said he doesn't like the idea of an economic stimulus package that's going to send tax rebates to people. He says they have other ideas; there are better ideas to get this economy going. Let's hear what he said.
(BEGIN VIDEO CLIP)
RICK MCKAY, LITTLE ROCK, ARKANSAS: I don't know that we need to throw a bunch of money, you know, several billion dollars at trying to prop up the economy. Does it need to be propped up? You know, I mean, we're all out there working. We're all, you know, trying to make -- give me something that's going to help me in the long run, you know. Reduce our taxes.
(END VIDEO CLIP)
VELSHI: All right, reduce taxes. Now, this is important because this is all happening during the campaign trail but it's also happening just days before President Bush gives his "State of the Union" address on Monday. And then on Tuesday or Wednesday, we're expecting to see yet another Fed rate cut.
One of the things being discussed, as you've been discussing is this rebate. This idea of giving people money. We stopped and talked to one woman who runs a "Sonic Burger" franchise in West Memphis, Arkansas just before we got to Little Rock and she thought the rebate was a good idea. Here's why.
(BEGIN VIDEO CLIP)
VELSHI: It helps businesses like yours.
CHRISTINE BAGEANT, CARLISLE, ARKANSAS: Definitely. It would definitely because I'm a small business owner. And that's who's getting hurt the most right now. We're struggling to pay bills month to month, just like everybody else.
(END VIDEO CLIP)
VELSHI: Those are just a few of the ideas we've been getting from people. Many people concerned about health care, they're concerned about jobs. That's a big deal. And as we've been telling you, we're working to find out some more details about a report that Ford may be ready to lay off another 13,000 people, could be as early as today.
We are getting concern here in the south about layoffs because there were a lot of manufacturing jobs in a lot of these areas, so these are the concerns we're hearing from people right here on the ground. We're continuing our tour. We're heading to California. We should be there by Sunday. John and Kiran?
CHETRY: All right. Thanks so much. Ali Velshi in Little Rock, Arkansas. We'll check in with you throughout the morning.
ROBERTS: A key endorsement for Hillary Clinton. Pennsylvania Governor Ed Rendell throwing his support to the Clinton campaign. Pennsylvania doesn't hold its primary until April but the governor plans to campaign for Clinton in New Jersey and Delaware, two of the Super Tuesday states. Rendell says Hillary Clinton is right for the White House but he also wishes the Democrats could campaign with less harshness.
Former candidate Duncan Hunter says he's backing Mike Huckabee in the Republican race for the White House. Hunter says Huckabee is a man of outstanding character and integrity and he's committed to strengthening national defense and securing the borders. The California congressman dropped out of the GOP race last weekend after poor showings in the early primaries and caucuses.
Newly revealed text messages showed Detroit's mayor sending love notes to a top aide despite both telling the judge that they were not involved in a romantic relationship.
The "Detroit Free Press" obtained transcripts of text between Kwame Kilpatrick and Christine Beatty. Kilpatrick is married and Beatty was married at the time. The messages were sent between 2002 and 2003. In one, Kilpatrick wrote, quote, "I am madly in love with you." Last summer, both testified that they didn't have a relationship. Lying under oath can carry a 15 year prison sentence. No word on whether charges will be filed.
Police here in New York City are releasing new information as they try to figure out what killed actor heath ledger. An autopsy yesterday was inconclusive and more tests will be done over the next two weeks.
Police found six different types of medications, including anti- anxiety pills and sleeping pills but no illegal drugs in Ledger's apartment. Police also tested a rolled up $20 bill but it tested negative for drugs.
The masseuse who found Ledger face down in his bed at about 2:45 p.m. reportedly picked up Ledger's cell phone and called Mary Kate Olsen, knowing that the two of them were friends. Olsen sent over a private security guard and the masseuse called Olsen again before she called 911. That was about 15 minutes after she discovered Ledger.
And tmz.com is reporting that Ledger's ex-fiance, Michelle Williams, arrived home in New York last night. Williams and the couples' 2-year-old daughter arrived at their house in Brooklyn. They had been in Sweden.
Kiran?
CHETRY: Well, heavy rain and snow slamming parts of Southern California. A storm dumping nearly a foot of snow in parts of north Los Angeles forcing the closure of I5 and many are known as the Grapevine for a time. Also, another round of lake-effect snow in Upstate New York. As much as 40 inches falling in Northern Oswego County. Our Rob Marciano is at the weather update desk. He's tracking extreme weather for us right now.
Hello, Rob. You were up there. You were up in Fulton, not far from Oswego.
(WEATHER REPORT)
ROBERTS: Can a desperate diplomatic mission stop the violence in Kenya. Former UN Secretary-General Kofi Annan met with the Kenyan president today trying to iron out a solution to the bloodbath engulfing that country. For now though, the violence in the streets continues.
Zain Verjee is live now in Kenya's capital in Nairobi and she's got the very latest for us.
Good morning to you, Zain.
ZAIN VERJEE, CNN CORRESPONDENT: Good morning, John. Violence is really continuing in small pockets around Kenya. We're hearing reports of several people being hacked to death, several homes are on fire in parts of the rift valley and people are still fleeing their homes afraid that they are going to be targeted because of the ethnic group that they belong to.
But we're here in the capitol city of Nairobi where things have been pretty calm over the last few days. People are going back to work. It's really business as usual, but there have been some skirmishes.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): Senseless destruction, moments after a memorial service for victims of Kenya's election violence. Burning, smashing, looting. Workers trapped in this building, until the police rescued them. Police hunted down the vandals.
Former UN Secretary-General Kofi Annan is hunting for a solution to Kenya's election dispute, pushing for a breakthrough in the standoff between President Mwai Kibaki and opposition leader Raila Odinga.
On the air, Caroline Mutoko, a popular radio show host says she's fed up with politicians who won't make peace.
CAROLINE MUTOKO, KISS FM RADIO: We will not let them hold us at ransom.
VERJEE: She says politicians have failed Kenyans. Most Kenyans are getting back to normal here after the recent violence kept them away from the city. MUTOKO: There's got to be a moment for you to say, shame on you, to both parties. Because frankly speaking right now, they're acting like brats.
VERJEE: Caroline says her listeners are more irritated than interested in demonstrations.
UNIDENTIFIED FEMALE: There is that level of political maturity and understanding.
VERJEE: As Kofi Annan navigates raw nerves, Caroline has a message for him and for the rest of the world.
MUTOKO: Don't give up on us and give us a chance. And Kenyans are so resilient as a people. We will come back from this and we will not go to the edge.
(END VIDEOTAPE)
VERJEE: The pressure is really now significantly on former UN Secretary-General Kofi Annan to show some results. Many are saying if there is no breakthrough, it could be catastrophic for Kenya and also catastrophic for the United States because Kenya is important to the U.S. for two reasons.
Firstly, John, it's important because it is a significant ally to fight the war on terror and Kenya also provides a significant logistical corridor for the U.S. to send aid to places like Southern Sudan.
John?
ROBERTS: Certainly an important relationship. Zain Verjee for us this morning in Nairobi. Zain, thanks.
Kiran?
CHETRY: Well, former vice presidential candidate Al Gore is causing quite a stir with a new video commentary he has posted on his website. And this time, it has nothing to do with the environment. Coming up, we're going to tell you what he said that's gotten a lot of people talking.
Also Grammy-nominated singer Amy Winehouse may be in some trouble again because of this home video. It's gotten the attention of Scotland Yard. It appears to be showing her smoking drugs. We're going to talk about the legal implications with Sunny Hostin, our legal contributor, next on AMERICAN MORNING.
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CHETRY: For the Grammy nominee who had the smash hit with a song "Rehab," caught smoking out of a glass pipe. It was on the cover of a British paper. Now, this video of Amy Winehouse is all over the web and now there are questions about whether or not she could be in trouble with Scotland Yard. AMERICAN MORNING's legal analyst Sunny Hostin joins us now to discuss what trouble the singer maybe facing. And in the video, we're going to show a little bit of it, Sunny. You can see Amy Winehouse smoking out of what looks like a glass pipe. There you see that. And also, you can hear her saying I just took about six Valium, a Valium not illegal to take. But can she face drug charges based on being seen on camera?
SUNNY HOSTIN, CNN CORRESPONDENT: You know, I don't think so. And looking at the video, I think we all know that this is probably Amy Winehouse smoking crack cocaine. I think it's pretty obvious. But obvious is not enough for criminal prosecution.
We really need to have some sort of forensic evidence determining that it was in fact crack cocaine, the pipe, checking out residue, that sort of thing. And typically, at least in the United States, you know, users are not -- you don't go after the users. You go after the distributors or the suppliers. So I don't think she's going to face criminal charges.
And we saw with Kate Moss, when she was caught. You know -- obviously, I think snorting cocaine. She wasn't brought up on criminal charges and the London investigators said listen, there's no forensic evidence. So that's likely what's going to happen here. But remember what happened with Kate Moss, Kiran. She lost several million dollar endorsement. She lost H&M. She lost Burberry. She lost Chanel.
CHETRY: And then just an example of how forgiving people are, then the next season she was back up on top again. She got all the endorsements back.
HOSTIN: Well, she was the "IT" girl, because she went to rehab and people like to see that sort of success story. You know, the rebound, the rehab story. But I think that's really what Amy Winehouse is facing. Her record company, Island Records, is already indicating, listen, we are not happy with this. This is difficult. So she is going to lose some credibility as an artist. I think that is really the problem that she's facing.
CHETRY: You know, the other thing is, being caught on tape is becoming much more common these days in general. But legally, how much of an impact does that make?
HOSTIN: Well, you know, it certainly has an impact when you have something else, when you have something else. If you're in trial and you have a video. Remember Rodney King? Remember, I think, we're going to see a lot on O.J. trial with the tape. When you hear all the expletives and...
CHETRY: The audiotape of this.
HOSTIN: There's the audiotape, so -- you know, videotape, audiotape, very important but you need something else. You need forensics. You need the substance. And we don't have that here. So I don't think she's going to be facing that. She's going to be facing, you know, public opinion and that sort of thing.
CHETRY: Absolutely. Sunny Hostin, thank you.
HOSTIN: My pleasure.
ROBERTS: 47 after the hour now. Iraq invites Iran's president for a visit. Your "Quick Hits" now. Iraq's foreign ministry says President Mahmoud Ahmadinejad will meet with Iraq's Jalal Talabani in Baghdad. It will be the first visit to Iraq by an Iranian president since the 1980s when the two countries fought an eight-year war in which hundred of thousands died.
The United States is getting an ally back in the fight for Afghanistan. A Japanese navy destroyer is heading back to Indian Ocean. It's on a re-fuelling mission for the coalition. It was held up for three months by a political battle in the Japanese parliament.
And who wants to date Drew Peterson? Probably not a good idea for a game show. We'll tell you what a Chicago radio station said when Peterson pitched the idea, that's coming up.
And yesterday, we told you about a teen who posted an angry voice mail from his school administrator's wife on the Internet. This morning, our Veronica De La Cruz has got an update. Hear what the high school senior has to say about CNN covering the story. Ahead on AMERICAN MORNING.
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CHETRY: About ten minutes before 7:00 here on the east coast. And if you're just joining us, here's a look at what's making headlines this morning.
President Bush and Congress close to a final agreement on a major economic stimulus plan. Treasury Secretary Henry Paulson and members of Congress are still going over the numbers. Americans could get $96.5 billion in tax rebates. It's about two-thirds of what originally was talked about as needed to kick start the economy.
A suspect is in custody in connection with the weekend death of a U.S. border patrol agent. Jesus Navarro Montes was arrested in Mexico. Authorities say he ran over border agent Luis Aquilar with his SUV. Aguilar was trying to stop two suspected drug smugglers from fleeing back to Mexico when he was hit and killed.
The UN climate chief says that the global goal of cutting greenhouse gases in half by 2050 can be reached. He told the World Economic Forum in Switzerland that government needs to do more to develop technology that will sharply reduce carbon dioxide and other greenhouse gases. A European Union plan to cut emissions 20 percent by the year 2020. It includes penalties for major polluters and more power from windmills, solar panels, and other renewable energy sources.
NASA says its astronauts did not confess to drinking on launch day. In an anonymous survey, a report by outside medical experts last summer alleged two cases of astronauts being drunk. A new survey did uncover one incident that involved a reaction between prescription medication and alcohol but it's not clear if that is one of the two incidents in the medical report.
Also, a new version of the dating game, starring Drew Peterson shut down by a Chicago radio station. Peterson, who was suspected in the disappearance of his wife, Stacey, called WJMK to suggest a "Win a Date with Drew," a game in which women could compete to date him. The station says the idea was never considered. Peterson's lawyer says Stacy Peterson ran off with another man and that Drew was entitled to have some fun. The 22-year-old, mother of two, has been missing since the end of October.
Well, former vice president Al Gore is back in the news again, stirring controversy with the new video commentary supporting same sex marriage. Take a listen.
(BEGIN VIDEO CLIP)
AL GORE, FORMER VICE PRESIDENT OF THE UNITED STATES: I don't understand why it is considered by some people to be a threat to heterosexual marriage, to allow it by gays and lesbians. Shouldn't we be promoting the kind of faithfulness and loyalty to one's partner regardless of sexual orientation?
(END VIDEO CLIP)
ROBERTS: Al Gore quietly posted the video to his website Current TV last Thursday. It's obviously creating a lot of buzz online now. The three Democratic frontrunners, Hillary Clinton, Barack Obama, and John Edwards have all said they oppose same sex marriage but they also oppose a constitutional ban against it.
Well, it's a story that we first told you about yesterday. A snow day phone call in Fairfax County, Virginia that snowballed into some big headlines and it is still growing. Our Veronica De La Cruz is here now with a follow-up. I'm very interested in this because my daughter goes to school in Fairfax County.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Oh, really? Well, this story has definitely snowballed. You're right about that. You know, yesterday, we told you about a high school senior in Virginia who called the home of an administrator to find out why he was not getting a snow day. You might remember that administrator's wife was not happy about the call and left the teen a scathing voice mail that he posted on the Internet.
(BEGIN VIDEO CLIP)
TISTADT: Don't you ever call here again! My husband has been at the office since 6:30 this morning. So don't you even suggest that he purposely didn't answer his phone! He is out almost every single night of the week at meetings for snotty-nose little brats. And he may not have called you, but it's not because he's home. It's because it snowed. Get over it kid and go to school.
(END VIDEO CLIP)
DE LA CRUZ: Yes and now, 17-year-old, Dave Kori, says that he wishes the story would just go away. He even seemed a little annoyed about all the calls that he was getting from the media on his home phone.
(BEGIN VIDEO CLIP)
DEVRAJ "DAVE" KORI, CALLED ADMINISTRATOR AT HOME: I think the story has gone on far enough. It's national news coverage. I think there are issues like Darfur. The presidential primary is going on. There still many other things they could have, this media attention.
(END VIDEO CLIP)
DE LA CRUZ: You know, and he is definitely right about that. But it seems that people are still interested after we aired this segment yesterday. I received this flow of e-mail. This one coming from Sandra Zuba. She writes this about Kori.
"He was totally out of his boundaries to even think of calling their home. That's their private number. That number is private, whether it is listed or not."
And the segment was also posted to YouTube, where it got lots of comment. It's been viewed more than 8500 times. Here's a comment from describer99. "Kids do stupid things but adults are supposed to have some common sense. Self-control and composure." So, 8500 views on YouTube. You know, I just talked to cnn.com, John. They said that this was the number one video posted to the site yesterday, more than 700,000 views. It was also on frightbark (ph). So seriously, this poor kid.
ROBERTS: Well, he's upset about the attention but he posted it on the Internet.
DE LA CRUZ: I know.
ROBERTS: Hello!
DE LA CRUZ: And created a Facebook page on top of it all.
ROBERTS: Hello! We keep telling people, if you don't want people to talk about it, don't put it on the Internet.
DE LA CRUZ: I know. Well, you know, some people never learn their lesson.
ROBERTS: Maybe he has now. Veronica, thanks.
CHETRY: The dad in him just came out.
ROBERTS: Totally. I tell my daughter all the time. Don't put anything on your Facebook page that you would not want the world to see.
CHETRY: I agree 100 percent. I don't have a Facebook page. Talk to her.
DE LA CRUZ: No, no, no. I don't have one either.
CHETRY: You don't? I thought you had a Facebook page.
DE LA CRUZ: I don't have any pages.
ROBERTS: Your daughter will soon enough.
CHETRY: No, she will not.
Sorry. Thanks so much, Veronica.
DE LA CRUZ: Of course.
CHETRY: Well, it's been a two-person campaign on the Clinton side, but now Michelle Obama weighing in as well.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, BARACK OBAMA'S WIFE: Our belief is that the decision of who will be the next president will not be based solely on race or gender. You know, my deep hope is that people...
(END VIDEO CLIP)
CHETRY: Race dominating the Democratic race. The latest war of words coming up.
Also, anti-depressants customized to your specific needs to possibly what would be most effective for your particular body. Will it be the hope that many Americans have been waiting for? Dr. Sanjay Gupta breaks it down for us, coming up in the next hour of AMERICAN MORNING.
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CHETRY: The campaigner-in-chief get angry.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER U.S. PRESIDENT: They're feeding you this because I know this is what you want to cover.
(END VIDEO CLIP)
CHETRY: Unleashing on the Obama campaign and one of our own reporters. Bill Clinton insisting he's not making race an issue. We'll take a closer look at what he's saying to voters.
A famous life cut short. But why? New details on Heath Ledger's death. What police found in his bedroom.
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