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American Morning

Gas Prices Setting another Record Overnight; 40th Anniversary of Martin Luther King Jr.'s Assassination; Tornado in Arkansas

Aired April 04, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Steve from Seward, Nebraska writes, "This is one poll where you should have added, quote, "all of the above."
You know Steve, we actually thought about that this morning. But we did want people to break it down into what they thought was the primary reason. They thought that everybody would just vote for all of the above.

And Michael from Lexington, Kentucky writes, "Our great nation is on the wrong track not for one single reason but a combination of several. Luckily, we are at a fork in the road and we have the opportunity to speak again as a nation in November."

And Charlie from Baltimore in Maryland says "I find that we do not appreciate what we have. Excuses to not make it better. We need to find our place and get involved. We need to love the country that we live in."

The next hour of AMERICAN MORNING starts right now.

ROBERTS: Hard numbers. Where the jobs are and where they went. A key job report out this hour.

Math problem, with superdelegates slipping, Hillary Clinton's plan to hang on.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I can win, because I believe I can win.

(END VIDEO CLIP)

ROBERTS: The most politics in the morning.

And apple jam. Pumping the price of admission to the big city. Ride along with the grand plan to end gridlock on this AMERICAN MORNING.

Sounds like the guys from stomp are doing that, doesn't it? Welcome back to AMERICAN MORNING. Thanks for being with us on this Friday, the 4th day of April. Kiran Chetry is off today. Ali Velshi and Alina Cho joining me this morning.

What do you got coming up this hour. ALINA CHO, CNN CORRESPONDENT: Well, gas prices setting another record overnight. So we will be talking about that. A year ago, if you can believe it, gas prices were at $2.70.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: We're giving it away.

CHO: Giving it away. Now, we're well above (INAUDIBLE).

ROBERTS: Comparatively speaking it seems like it.

CHO: Yes. And then a shark attack and pictures of a fanged fish you're not going to believe when I tell you about it.

ROBERTS: Don't give it all away. Save some of it. And a big jobs report.

VELSHI: We are half an hour away from the big jobs report for March, which a lot of people are looking out. It's going to make a decision for a lot of people as to whether or not they think we are in a recession or not. We are expecting it not to be very good. But I will keep an eye on it. If there is any good news, I'll give it to you whatever it is going to happen.

ROBERTS: Ali, on the job this morning. Thanks. Looking forward to that. Let's get you caught up on what happened overnight. Some breaking news this morning. We're watching extreme weather tear across the Midwest today. We've already seen what it can do in Central Arkansas.

At least one tornado touched down overnight in the capital of Little Rock. Emergency services say the funnel cloud sends sparks flying as it hit a transformer, igniting an inferno in a mobile home community. People say at least four people are injured, dozens of homes are damaged.

More than a hundred of people waking up this morning in shelters after the storm tore the cover off some of their homes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I've seen this man's house, the roof is totally gone off his house. It's fled.

(END VIDEO CLIP)

ROBERTS: Emergency management also says there were several swift water rescues as flooding trapped people in their cars.

And the heavy rains are on the move this morning. Where are they headed? Our Rob Marciano with the weather update desk tracking the extreme weather for us.

Good morning, Rob.

(WEATHER REPORT) ROBERTS: Just in this morning. President Bush and other NATO leaders met with outgoing Russian President Vladimir Putin in Bucharest, Romania. Today's meeting comes a day after alliance leaders voted to endorse the president's plan for a missile defense system in Europe. It was a plan that Russia vigorously oppose.

NATO's chief called the meeting frank and open. Presidents Bush and Putin will meet again this weekend in Russia.

The most politics in the morning now. The Democratic campaigns have released fund raising numbers for the month of March. Barack Obama raised -- watch this. Look at this. Wow! $40 million last month. That is twice what Hillary Clinton took in during the same period. So far this year, Obama has raised a total of $131 million compared to Clinton's nearly $70 million.

On the Republican side, it appears that John McCain is taking the first steps toward public financing for the general election. His campaign is returning $3 million in donations. McCain has said that he will commit to public financing if the Democratic nominee agrees to do that as well.

Meanwhile McCain's former Republican rival Mitt Romney tells CNN's "THE SITUATION ROOM," he has not concern about McCain's inability to match the Democrats in raising money.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: The fun thing about watching the Democrats raise this money is that they are spending it all. They are spending it all trying to convince us that the other candidate is unelectable. And I frankly agree with both of the Democrats. They are unelectable.

Senator McCain won the nomination without spending much money. He is doing very well in the national opinion polls and the recognition that he received despite the fact that he is not up with advertising. He's instead talking about important issues, traveling around the world, meeting with leaders of the world.

(END VIDEO CLIP)

ROBERTS: Romney who spent more than $30 million of his own money on his primary campaign says he is certain that Senator McCain will have whatever money he needs for the general election.

And another note -- some interesting one -- about the McCain campaign out this morning, he has never used secret service protection. The agency's director told Congress that McCain has not asked for it, not required to take it, and he's holding off as long as he possibly can.

McCain says that he would rather be up close and personal with voters on the campaign trail. Hillary Clinton travels with secret service agents due to her status as a former first lady. And Barack Obama requested and began receiving protection last year after the Homeland Security Department decided that the threat level against him was high enough.

Don't know how long John McCain can hold out but he is going to try to do it as long as he can.

The parent denomination of Barack Obama's church is now calling for a nationwide discussion on race. Leaders of the United Church of Christ are asking their 10,000 pastors to conduct what's being called "A Sacred Conversation" next month.

It follows the outrage generated by comments from Reverend Jeremiah Wright. He is the former pastor of Trinity Church. The president of the United Church of Christ, Reverend John Thomas, spoke with CNN's "Anderson Cooper" about that last night.

(BEGIN VIDEO CLIP)

REV. JOHN THOMAS, PRESIDENT, UNITED CHURCH OF CHRIST: I think we saw a caricature and a stereotype not only of Reverend Wright but of the black church. And as a result, the conversation on race has not been sacred but profoundly ugly and unhelpful. And that's why, on this anniversary of Dr. King's famous speech before his assassination, we're calling for a sacred conversation on race that we think can achieve and move us toward his challenge to make America a better place.

ANDERSON COOPER, CNN ANCHOR: How do you see that conversation unfolding? I mean, you are calling for a conversation in churches on a given day. What do you want people to talk about? What is the conversation?

THOMAS: Part of the reason that this conversation is so difficult is that we often are unwilling to be deeply honest with one another. That we view one another simply through a lens of caricature or stereotype. So we're calling for a conversation where people in a context of trust and respect begin to be more honest with one another, to share their fears, their hopes, their anxieties, their anger.

This is not going to be an easy conversation. Sacred conversations can be profoundly difficult and sometimes they can be loud. But they are important for us. And we know that it's only a beginning on May 18th, that is the opening part of the conversation.

(END VIDEO CLIP)

ROBERTS: Obama's church has received threats since Wright's comments came to light. It is the country's largest United Church of Christ congregation.

Alina Cho here with other stories new this morning.

Good morning to you.

CHO: Hey, there, John. Good morning. Happy Friday. Good morning, everybody.

New this morning. Iraq's Prime Minister Nuri al-Maliki is calling for an end to raids against suspected Shiite militants. That order follows a warning from anti-American cleric Muqtada al-Sadr. He threatened retaliations if those arrests did not stop.

And this morning, a bombing at a funeral for a Sunni police officer. That happened just north of Baghdad. The violence there continuing, at least 15 people were killed. At least eight more injured.

And despite the recent violence in Iraq, the latest national intelligence estimate says conditions in Iraq are improving. The classified report which was released to key lawmakers reportedly focuses on security and improvements in the Iraqi government. Democrats, of course, already raising questions about this, saying the report is designed to bolster the administration's Iraq policy.

Well, the price of gas broke a new record overnight according to AAA. The national average for a gallon of regular unleaded is now -- drum roll -- more than $3.30 a gallon, up from the previous high of $3.28. Just inching higher and higher. New Jersey, by the way, is the only state where the price per gallon is below $3.10 according to AAA.

Listen to this story. A teenager bitten by a shark in Florida lives to tell about it. The shark grabbed hold of Joey Giangrasso's leg and wouldn't let go.

(BEGIN VIDEO CLIP)

JOEY GIANGRASSO, BITTEN BY SHARK: It's nothing I could really do. It happened so fast. I just didn't even know what to do. He shook his head, wouldn't let go for a second. I tried to pull my foot out. And finally, he just let go.

(END VIDEO CLIP)

CHO: Seems pretty sane about it. Joey Giangrasso got dozens of stitches as doctor's pulled the shark's broken teeth out of his leg. Ouch! And it was a close call. Doctors say that bite narrowly missed a major artery.

And you wouldn't want to get bitten by this guy either. Take a look at that. Isn't that scary? A rare -- that is one ugly fish, man. A rare fanged fish. It was found in Utah. Now, biologists are studying it. They are trying to figure out what it is and exactly where it came from. That is one ugly animal, isn't it?

Fish was found in a parking lot. Nobody knows exactly how it got there. But an official for the Department of Wildlife Resources said when he first saw it, he said quote "What in the crap is this thing?" My language might have been a little bit more colorful.

ROBERTS: So there is no indication that that actually came out of the lake?

(CROSSTALK) CHO: There are some -- well, actually I was reading some of the wire copy, and it said it might have been a pet fish. I don't know. They think it might be a trout. But -- and that when it decomposed it actually just revealed the teeth. So anyway -- either way, it is...

ROBERTS: It's a rare devil fish that's left over from prehistoric times.

CHO: Have a happy Friday and a good weekend.

ROBERTS: Friday is always a good thing. Alina, thanks very much.

CHO: You bet.

ROBERTS: Well, you may not have seen it for a few years, but I'm sure that you all remember the peace symbol. Well, it turns 50 years old today. April 4th, 1958, it was first seen at a band of bomb protest in Great Britain. It of course became symbol of the 1960s anti-war and counter-culture movement. Happy 50th anniversary to the peace symbol.

Well, spring is usually a hot time for the housing market, but some experts are expecting this spring is going to be the worst in ten years. Gerri Willis is joining us with a look at what to expect, coming up.

And she's down but not out. How much longer can Hillary Clinton stay in the race with Barack Obama? We will talk with key supporters from both campaigns, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Fourteen minutes after the hour.

Eight out of every ten Americans now think that the country is headed in the wrong direction. That is according to the latest New York Times CBS News poll. 81 percent of people say we're on the wrong track. That is the most since they started taking that poll back in the early 1990s.

And it brings us to this morning's "Quick Vote" question. What do you think is the primary reason that the country is on the wrong track? Let's take a look. Right now, 53 percent of you say it's Iraq. Insert graphic here. 25 percent say it's the economy. 16 percent say political gridlock. 2 percent say the state of healthcare. 4 percent say the state of education.

Cast your vote for us at cnn.com/am. Coming up just before we headed over to NEWSROOM at 9:00 a.m. Eastern, we will have a final tally to see how that all shaped up. But looks like Iraq clearly is the number one issue for people.

We're also looking for your thoughts online. Didn't see a choice in the "Quick Vote" that you like. You think that something else is driving the country off track, just want to tell us more about it. E- mail us at cnn.com/am. We're going to have your e-mails in the first tally of votes, coming up later on in this hour.

Well, the housing crisis is weighing heavily on the minds of Americans looking to buy or sell a home. Normally, the spring season is when the most homes are sold. But with the current state of the economy and the credit crisis, are we going to see the same this year?

CNN's personal finance editor, Gerri Willis, joins us now to explain.

Good morning, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning, John. Good to see you.

You know, this is going to be the worst home selling season for sellers in ten years and maybe as many as 34 years if you look back to 1974. There was a mortgage moratorium in which no loans were being made. This will obviously be a very difficult year for sellers. But for buyers, the world is their oyster.

Let's start by looking at some prices across the country. The national median came down in five years from a high of $230,000. You can see where they are by region now. The national median is $195,500. It's come down pretty hard. That is all good news for folks who are trying to buy homes right now.

But I have to tell you, you're going to have one big problem this year if you are in the market to buy. And that is getting the money for the loan. No more of this no dock loans out there. The easy loans to get, you're actually going to have to put down 10 percent to 20 percent of the value of the home to actually buy the thing.

To get the best terms, you will need a higher credit score in many parts of the country. Only the score of 680 to 720. And if you are looking to find out what your credit score is A and B, what kind of interest rate that will buy you, go to myfico.com. You can get a lot of help there.

ROBERTS: Beyond securing the loan, what should people be watching out for? What should they keep in mind when they are looking to buy a home?

WILLIS: Well, we want to make sure that you evaluate the market that you are in. You know, not every market is falling precipitously. Some are doing OK. So be sure to check out your local market. Negotiate the deal. Right now, is a great time to low ball prices.

And then prepare for the closing. Make sure you have all the information you need going into the closing, especially the HUD-1 Form which will allow you to compare closing costs with the initial offer from your lender. Preparation is key when you are buying at home. Be sure you negotiate hard. You are in a good position now to get a great deal.

ROBERTS: You know, I've talked to some people who have been refinancing their homes. And they say the amount of paperwork that they have to fill out now compared to when they first got the mortgage -- really, really, strikingly more than they had to do initially.

WILLIS: Lenders are weary and they are really making borrowers go through hoops to get those loans.

ROBERTS: Gerri, thanks very much. By the way, a lot of good tips in Gerri's book called "Home Rich." And also on her program, "OPEN HOUSE," 9:30 Eastern on Saturday right here on CNN.

And on our "Headline News" sister station, Saturday and Sunday at 3:30 p.m. She's into it or she's in it, rather, to win it.

Hillary Clinton looking forward in her uphill battle against Barack Obama. We are going to hear from the two Democratic campaigns. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Twenty-one minutes after the hour. And this week's "Fit Nation" segment the story of Sharon Twitchell. She says that without her computer, she would probably still be over 220 pounds.

Our Dr. Sanjay Gupta reports.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): By all accounts, Sharon Twitchell, lived a quiet suburban life. But she had a darker side.

SHARON TWITCHELL, LOST 110 POUNDS: I would find any reason to eat. And I would do a load of laundry and reward myself for doing a load of laundry. I had stashes in the house hidden away. And I was doing basically the same thing that an alcohol does.

GUPTA: Frightened by her actions, she decided to seek help.

TWITCHELL: I went to my doctor hoping of course for the little magic pill which we all know doesn't exist, but in our hearts we hope it does. And I saw the "W" start to form on his lips. And I said don't go there, don't say weight watchers I won't go to the meetings.

GUPTA: Her doctor persisted, suggesting the online version of weight watchers instead. But could an online program be as effective as face-to-face interactions.

TWITCHELL: It is good because it keeps me in check, something goes in the mouth, it goes in the computer.

GUPTA: She was diligent in recording everything she ate as part of the weight watchers regimen and began exercising six times a week. She never set foot in a meeting. Now more than 100 pound lighter, Sharon says her weight loss has completely changed her life and her marriage.

TWITCHELL: My husband went out and bought a new diamond wedding band for me. And as he slipped it on my finger he said this is a renewal of our vows and it has. I mean, we had a partnership for about 15 years. Now we actually have a marriage again. My name is Sharon Twitchell and I have lost 110 pounds.

GUPTA: Dr. Sanjay Gupta, CNN reporting.

(END VIDEOTAPE)

ROBERTS: And you can catch Dr. Gupta this weekend on his own program "HOUSE CALL." It airs Saturday and Sunday mornings at 8:30 Eastern right here on CNN.

Today, the nation remembers the legacy of civil rights leader Martin Luther King Jr. on the 40th anniversary of his assassination. King was shot in a Memphis balcony back in 1968. His death tore a hole in the hearts of fellow civil rights leaders. And four decades later, King's work continues.

A live look right now at the King Center in Atlanta and the reflecting pool there. Several events planned today including visits to Memphis by presidential candidate's Hillary Clinton and John McCain.

And join CNN this afternoon for all of the King commemorations live from Memphis. We are also tuning in with radio show hosts across the country for "Conversations with Black America." Part of a month long examination of black life in the country today. Catch it live on CNN 1:00 p.m. Eastern. Or log on to cnn.com/live.

You are watching the most news in the morning.

A court says a Web site that brings roommates together has to obey the same laws that offline companies do. Could this ruling change the way that business is done on the Internet. We will take a look at legal aspects coming up.

And a tornado sends sparks flying, igniting parts of Central Arkansas. A live update in the rescue and cleanup effort. And tracking more extreme weather, next on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Well, New York, you don't necessarily want to go outside today. There's a shot of Columbus Circle just outside of the Time Warner Center looking into Central Park. And it is rain, rain, rain, all the way through probably until tomorrow afternoon. Sunday is supposed to be nice. High of only 51 degrees right now.

Welcome back to AMERICAN MORNING. John Roberts together with Alina Cho this morning. Kiran Chetry is off. We got breaking news to tell you about this morning.

Extreme weather on the move after at least one tornado tore a path through Central Arkansas. The funnel cloud was caught in a dash cam as it apparently hit a transformer and sent sparks flying igniting a trailer park on fire. Police say it injured at least four people, sent residents running. During the past two months, parts of Arkansas have seen a tornado during a storm outbreak that killed 13 -- a foot of snow, more than a foot of rain, and near record flooding. Still, neighbors say this one caught many people by surprise.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Everything was tore up. Big doors were torn off the buildings, people's house, their roof were taken off. I felt the wind literally almost take me off my feet.

(END VIDEO CLIP)

ROBERTS: Storm system is far from finished. Rob Marciano at the CNN weather center tracking the extreme weather.

Where is it headed next, Rob?

(WEATHER REPORT)

ROBERTS: Rob, thanks very much for the update. Our apologies as well for that minor technical glitch where, Rob, disappeared in favor of an empty chair.

New this morning, a ruling by a U.S. Appeals Court that limits questions that certain Web sites can ask users about their sexual orientation. Our Veronica De La Cruz is here with details of that decision. And we've also got, Sunny Hostin with us. She's going to look on the legal analyst.

First of all, Veronica, what do you got?

VERONICA DE LA CRUZ, CNN INTERNET CORRESPONDENT: Well, we are talking about the Web site roommates.com. You know, the court rule that the site cannot require users to disclose their sexual orientation and they compare it to people asking someone by phone if they are black or Jewish before conducting business.

Now, people can volunteer their sexuality but it cannot be an obligation. Federal law has generally tended to shield the Internet from liability partly to protect the Internet's growth. This is actually the part of the Web site that is at question.

I wanted to show you, John, if you go through the entire form, you have to register to join this Web site. And the field there that is in question is the field that asks your gender, are you a male, are you a female, are you straight, or are you gay? And they use that information to do an ad for you

Now, we are looking at craigslist.org this morning. And this is an ad that we came across. It is an ad that you find routinely on craigslist. An ad asking for another gay male roommate, a gay male seeks a gay male roommate. The ad asks I'm seeking to rent a cool laid back masculine gay male only. So, the question here is -- how does this ad at craigslist.com, how does it differ from an ad found online at roommates.com? ROBERTS: Well, let's bring in Sunny Hostin to find out. How is craigslist different?

SUNNY HOSTIN, CNN LEGAL ANALYST: It is different because craigslist acts as a host. That's all it does and posters are allowed to post their ads. Craigslist doesn't actively do anything. That is very different from roommates.com which is as Veronica was saying, does much more than that. It takes the information and then matches people, uses the content.

Typically John, the communication decency act protects these Web site. That is very different now because the California court said, you know what, this site did a little bit more and now you are going to be held liable. This is an unprecedented case here.

ROBERTS: What about -- what are they facing in terms of liability?

HOSTIN: They are facing liability, they could be facing lawsuits. And I think they're going to be facing lawsuits. You know, John, and I told Veronica this many times, lawyers are just looking for the door to open just a little bit so they can get their pinky toe in. That's exactly what happened here. The door is now open and we're going to see liability, I think we're going to see some lawsuits.

ROBERTS: All right. Well, let's keep following this case because it is obviously a very interesting one. It could set precedent as Veronica was saying, for the Internet in the future.

HOSTIN: Absolutely. We'll be following it.

ROBERTS: Sunny, Veronica, thanks very much.

And just in for you now, new job numbers for the month of March. Ali Velshi at business update desk with that for us now. Well, what are we looking at, Ali?

VELSHI: A payroll drop in five years. We lost 80,000 jobs in March, that is worse than the high end of expectations. We were talking earlier maybe 50,000 jobs.

We lost 80,000 jobs, were slashed in March in the United States. And the January and February numbers which I told you about earlier just waiting for those revisions to come in. But the revisions are downward, which means we lost more jobs in January and February than we already thought we had.

And now 80,000 in March. So, we are well in excess of 200,000 jobs lost in the United States in the first three months of the year. The unemployment rate which was 4.8 percent and was expected to go to 5 percent has now jumped to 5.1 percent in the United States.

So, this is not good news all around for those people who are still sitting on the fence wondering about whether or not we are going to be -- we are in or going to be in a recession, this may help make their mind up on that. I'm seeing numbers as they are coming in.

But we do have a loss of 80,000 jobs in the United States in March bringing the total for the first three months of 2008 to more than 200,000 jobs lost and an unemployment rate of 5.1 percent.

I'm going to dig through these numbers, John, and find out exactly where the jobs were lost. We know there have been jobs lost in construction and manufacturing as we expected. I'm going to try to figure out a little more about exactly where jobs were lost and hopefully any that were gained where they were but not a good picture.

ROBERTS: But, Ali, just to put this in the proper perspective, you were saying earlier today that most analysts were expecting anywhere between 25,000 at best to 70,000 at worst?

VELSHI: Right, 70 was the far end of the scale. In fact, our colleagues discussed we're probably not going to use that. We are going to stick with 50 which seems to be a good consensus estimate. And if it were worse than 50 we would characterize it as such. 80 wasn't on anybody's radar.

So, 80,000 jobs lost. And by the way, this doesn't count Motorola, ATA, Dell, all in the last week announcing a, you know, a few thousand job cuts. So, not a good picture.

ROBERTS: So, what's this going to do with the markets today?

VELSHI: It's often, the markets have gone from strong positive to -- the futures have gone strong positive into negative territory right now. It's bad news.

ROBERTS: All right. Ali Velshi for us this morning. Ali, thanks. And keep it here to learn more about "ISSUE #1," the economy. Join Ali, Gerri Willis and the CNN Money Team for "ISSUE #1" today at noon Eastern, right here on CNN. And also on-line at cnnmoney.com.

Paying a price for driving in New York City, hear what New Yorkers are saying about a plan to relieve traffic congestion.

And she's down but not out. How much longer can Hillary Clinton stay in the race with Barack Obama. We'll talk with key supporters from both campaigns, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Barack Obama is ahead in pledged delegates and the popular vote. But Hillary Clinton leading the polls in Pennsylvania still banking on superdelegates and she is not backing down. We are hearing from both campaigns this morning.

Missouri Senator Claire McCaskill is the co-chairwoman of Obama's national campaign. She's in our Washington bureau this morning. And Pennsylvania Congressman Joseph Sestak is a Hillary Clinton supporter. He is live in Philadelphia for us this morning.

Senator McCaskill, let's go to you first. Barack Obama raised $40 million during the month of March, that is double with what Hillary Clinton raised. She didn't seem too worried about it.

Here's what she said yesterday.

(BEGIN VIDEO CLIP)

CLINTON: I am being outspent. You know, I haven't seen final numbers but I think I was outspent four to one in Ohio, three to one in Texas. And goodness, I think I was outspent five to one in Rhode Island. So, I'm being used to being outspent.

(END VIDEO CLIP)

ROBERTS: Yes. If you know the politics of this whole thing, she was outspent in Ohio, Texas, and Rhode Island and won all three of those states. Senator McCaskill, she is still leading by double digits in many polls in Pennsylvania. Can money make the difference for Barack Obama in the keystone state?

SEN. CLAIRE MCCASKILL, OBAMA NATIONAL CAMPAIGN CO-CHAIRWOMAN: Well, I think the story about the money is not whether or not money is going to make the difference but what is happening in the Barack Obama campaign. This is 221,000 new donors in this month.

The average contribution was less than $100. This is a ground swell from the bottom which is the sanitizing we need in politics. It's what's going to clean this mess up to have little money driving politics instead of those great big checks with commas in them.

ROBERTS: Congressman, what about that idea that he's got all of these new donors coming in? He keeps attracting new supporters. Can Hillary Clinton match that? I mean, you know, we're talking about dollars may not make that much of a difference but a ground swell of support just could?

REP. JOSEPH SESTAK, CLINTON SUPPORTER: I think it's important to see that Senator Clinton actually has won 263 of the electoral votes. And when only 270 are needed in order to win the general election of the state, she's already won. Here in Pennsylvania, it fits her like a glove. This is a hard scrap of gritty state, Slovaks who came over like my grandfather, worked in Lucan (ph) steel mill.

This is a state that is ready to sacrifice for this nation. We have more national guardsmen per capita in Iraq than any other country. And yet we felt the cost of that burden. We've lost more -- had more casualties than any other state except two. So, Hillary Clinton is someone that actually resonates here. She says end that war in Iraq, but win it in Afghanistan.

No. This is a woman who understands also that national security begins at home. And the economic security of our nation which is why she was the first to say we are getting into a recession. We have to do a second stimulus plan. It's why she didn't took the next step and said, whoa, wait a moment, let's have a $30 billion fund that can help communities and states, salvage the middle class from foreclosures.

And then two other points. One, she has said let's make sure we have an emergency fund for the longer term to fix our infrastructure as well as to invest in clean energy. What a leader for this nation. And Pennsylvania will resound to that.

ROBERTS: Congressman Sestak, let me just back up and ask you, what do electoral votes have to do with the nominating process?

SESTAK: It's great. If you look at the states that she has already won. Those states cumulative are 263 of the states that are needed in order to get the two ...

MCCASKILL: John.

ROBERTS: And how does that take her to the Democratic nomination?

MCCASKILL: Yes.

SESTAK: What will take her to the Democratic nomination is the momentum at her back. She needs to win Pennsylvania well, and then she needs to win about six of the remaining primaries. She needs to be tied in the popular poll as she goes into this convention.

With momentum at her back then, we need to decide what is best not for the party but for this nation. No, that is why those see where we can win in November, the states she's won has been so important.

ROBERTS: Al right. Let me bring in Senator McCaskill if I could. Senator McCaskill, Hillary Clinton's lead in the superdelegates is dwindling. She was well up over 100, now she's down to 30. John Corzine and Jack Murtha who are both ardent Hillary Clinton supporters who have said that she's got to win the popular vote to win over superdelegates.

Here is what Congressman Murtha said "Clinton has to win Pennsylvania. She had to be ahead on the popular vote to have any chance at all to getting this morning. If she does not blow Barack Obama away in Pennsylvania, is it over for her?

MCCASKILL: Well, I don't -- that's her determination. And she's a formidable opponent. I know that Barack has incredible respect for her as most of us do that are in this campaign. We think she's a strong and smart woman.

Now, she's going to win Pennsylvania. She is probably going to win Pennsylvania by double digits. The question is -- at the end of the primary process, who has earned the domination by getting the most delegates in the most states? And it is so really kind of disingenuous to say she's got electoral votes.

Does anyone believe that the Democrat is not going to win in New York and not going to win in California? Of course. We are going to compete as a Democrat in those states. And it is important we come together as a party. Because there's a stark difference between Barack Obama and Hillary Clinton and the other side in terms of our economy and our foreign policy. ROBERTS: And Congressman Sestak, let me just go to this point about when the nominee is determined. Howard Dean has said he would like to have it over and done with by July 1st. Hillary Clinton has said she's prepared to fight all the way to the convention.

Let's listen to what Congress, what Senator Chris Dodd told us yesterday on AMERICAN MORNING about the timing of all of this.

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), CONNECTICUT: The national leadership of our party at some point here has got to say game over, otherwise you're going to go to the convention highly divided. And let me tell you what will happen. If you go to the convention highly divided with eight weeks to go before a national election, barring some other extraneous circumstances, you will lose the national election.

(END VIDEO CLIP)

ROBERTS: We should point out that Senator Dodd is an Obama supporter. But Congressman Sestak, what about that idea that if you are divided going into the convention, you are throwing away the general election and that this should be determined long before then?

SESTAK: I have great respect for Chris Dodd who came into my district and helped me get elected. But let me say I disagree. Look, we had, one of our greatest presidents, President Roosevelt at a very defining time, much like today, when at a brokered convention against Al Smithton went on to victory.

No, Senator Obama is the man he says he is, I believe that. If we go into this convention, much like Dean also has said, delegates are not bound by any rules, that he will turn to his followers and say if Senator Clinton wins the nomination, does win enough superdelegates there, follow me to follow her. And I believe the same about Senator Clinton will do the same for him. Again, this is about good judgment of who is best for this nation on day one, which is Senator Clinton.

ROBERTS: Two weeks and four days until that all important Pennsylvania primary on the 22nd. Congressman Joe Sestak and Senator Claire McCaskill, good to see you this morning . Thank you for dropping by.

SESTAK: Thanks for having me aboard.

MCCASKILL: Thanks, John.

ROBERTS: CNN NEWSROOM just minutes away. Fredricka Whitfield at the CNN Center with a low at what's ahead.

Good morning, Fredricka.

FREDRICKA WHITFIELD, CNN, ANCHOR: Good morning to you, John.

Well, we are watching for severe weather all the in the NEWSROOM. And more tornadoes could hit the south today. Arkansas totaling the damage after last night's twisters.

How many Americans lost their jobs in March? New unemployment numbers just out. It's "Issue #1" for you.

And gunned down in Memphis 40 years ago today. We're talking live with the Reverend Martin Luther King's sister and his driver Friday in the NEWSROOM.

We get started at the top of the hour here on CNN -- John.

ROBERTS: We will see you then, Fredricka. Fifteen minutes away now.

It is New York City's grand plan for easing gridlock. We'll hear what New Yorkers are saying about it in a live report ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: We want to go back to Ali Velshi who has got more details on the job numbers that are coming out this morning. And Ali as bad as the news might have been expected to be, it's even worse.

VELSHI: Yes, the unemployment rate is now the highest in three years standing at 5.1 percent. Job losses are the biggest in five years, 80,000 jobs lost in the month of March. But not only that, they've revised the number of jobs that we lost in January and February.

So, we're now looking at a loss in January of 76,000 jobs, in February of 76,000 jobs and in March of 80,000 jobs. That is 232,000 jobs, nearly 250,000 jobs lost in the United States just in the first three months.

Now, we've heard of job losses and layoffs since then that aren't calculated into this. I'll tell you where the jobs have been lost. They are where we have seen them lost in previous months. Construction 51,000 jobs, mainly specialty trade contractors.

You know, since the peek of construction in 2006 there have been almost 500,000 jobs lost in that sector. Manufacturing, another 48,000 jobs lost in manufacturing. We've lost almost 300,000 jobs in manufacturing in the last 12 months. And employment services was another big area where jobs were lost.

The gains were meager. We had 23,000 jobs created in health care. That has been a good place for jobs in the last 12 months. 23,000 jobs created in food services. And after that, the next biggest gain was in mining where we saw an increase of 6,000 jobs related to the high cost of energy now and demand for commodities and energy products that need to be mined.

And so, the losses far outweigh the gains. A loss of 80,000 jobs in March. And a pretty high unemployment rate, this is area for concern -- John. ROBERTS: So, if we follow this model and it maybe unemployment that actually takes the country below the line and into recession, how far away are we from that tipping point?

VELSHI: Well, that remains the question. In the past it's been unemployment and things like that. This time because housing put us into this mess we have two forces working against each other. So, if housing continues to go down and unemployment continues to go down, that's what could deepen the mess we are in. If both of them turn around, well, things could get better. But this is definitely the point at which you have to say, hey this economy is headed for recession if it not in one now.

ROBERTS: And of course, looking ahead to what the effect in the market is going to be when the market opens in 40 minutes.

VELSHI: Yes, it's sort of mixed at his point because again this indicates that the Fed will have to take further action and markets like that. So, unclear where markets are going with this.

ROBERTS: Everybody is trying to game this out. Ali Velshi for us this morning. Ali, thanks.

VELSHI: OK.

ROBERTS: It is New York City's grand plan for easing gridlock. How much would you be willing to shell out to drive into the big city? That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Eight minutes now to the top of the hour.

Breaking news just in to CNN. Britain's Prince Philip rushed to the hospital with reports of chest pain. Prince Philip is married to Queen Elizabeth the II, father of Prince Charles, grandfather of William and Harry. He is 86-years-old.

Our London bureau following this story. Again, Prince Philip rushed to the hospital with chest pains. Stay tuned to CNN all morning. We're going to have updates for you on that breaking news story.

Hey, you know what the song says about New York that if you can make it here, you can make it anywhere? Well, maybe the tune should add well not just anywhere fast. New York City has to move millions of people around its tight quarters every day. And the price of admission by car or truck already steep to some people who are coming in from neighboring states is about to shoot up.

CNN's Richard Roth has been testing out New York's congestion pricing idea, its grand plan to cut traffic and pollution. This is modeled -- Mayor Bloomberg has taken the model from London, England, which people claim work well.

RICHARD ROTH, CNN CORRESPONDENT: Some would disagree. We saw traffic moving out there just now, John. But it's raining, it's Friday. It's going to get a little messier. But as mentioned, do you want to attend a Broadway play, want to go to the Empire State Building but plan to get there by car? Prepare to pay for it.

It is called congestion pricing. New York City is looking into it. It is giving some who live outside Manhattan indigestion.

(BEGIN VIDEOTAPE)

ROTH (voice-over): Here they come, cars pouring on to the island of Manhattan where they promptly go nowhere. How bad is the traffic really now in New York?

UNIDENTIFIED MALE: You see me moving right now?

ROTH: Tied up and fed up, New York leaders want drivers to pay to enter midtown and lower Manhattan. This (thought) is crucial. The bridge and tunnel crowd and others crossing south of 60th Street would have to pay $8.

CHRISTINE QUINN, NEW YORK CITY COUNCIL SPEAKER: We have to do this because we are in a situation really that is a crisis level as it relates to traffic and congestion.

ROTH: Critics want to blow a -- (EXPLETIVE DELETED).

TONY AVELLA, NEW YORK CITY COUNCILMAN: Nobody drives into Manhattan for the pleasure of it. They drive in because they have to.

ROTH: Drivers are already coping with higher gas prices and bridge tolls.

UNIDENTIFIED FEMALE: It's crazy.

UNIDENTIFIED MALE: It's going to cost me another $2,000 a year, and I can't afford it.

ROTH: But the city says the traffic is hurting business and pollution is making people sick. London has implemented similar rules to ease its traffic problem, the jury is still out on whether it's actually working. As in London, in New York, cameras and other sensors would help collect most of the fees. Many residents welcome the plan.

UNIDENTIFIED FEMALE: You're in danger, you're in constant danger with the traffic.

ROTH: Truckers seen as the enemy by some New Yorkers will have to unload $21. They are going to charge more for people like you driving in.

UNIDENTIFIED MALE: We'll be out of business. $21 a day, just the pricing will kill me and put me out of business. All the small mom and pop stores.

ROTH: But we will be able to walk in Manhattan then? UNIDENTIFIED MALE: Yes, that's good. You won't be able to drink no iced tea, Arizona iced tea.

(END VIDEOTAPE)

ROTH: Well, drivers will have to cool their heels in traffic. This is not a done deal yet though, John. The New York state legislature must approve this by Monday or else New York City will lose $350 million or more in mass transit funds. And that's really the purpose of this congestion pricing plan.

ROBERTS: Could New York City be the first shoe to drop across the country? Might we soon see if this works here, or if its adopted here, cities like Chicago where traffic is terribly bad in the city center, Boston, Philadelphia, adopt the congestion pricing? Such a windfall of money too.

ROTH: New York City hopes this could happen. We saw the smoking plan here in New York, sometimes New York sets the trend. They were ahead of it on crime rates going down. So, you will never know. So, I mean, you know, if you live inside of Manhattan in Times Square, you got out of north, come back after buying a quarter of milk you're going to pay $8.

ROBERTS: So, I'll either walk or take subway because I don't have a car in the city. Richard, thanks very much. We'll keep watching this and see which way it goes.

Well, this morning we have also been reporting about a Virginia Tech style plot that police say they discovered on line. A 20-year- old with a stash of automatic rifles and thousands of rounds of ammunition, some of it armor piercing. Police in Homestead, Florida, say Calin Chi Wong was threatening to stage an attack similar to the one at Virginia Tech nearly a year ago. He got out on bond of $7,500.

CNN's Susan Candiotti joins us now from Miami. And Susan, some might think there is a bit of a disconnect here, if this guy was potentially dangerous, had all of these armaments which some, I think police described as he was better armed than the local S.W.A.T. team. You wonder why he is out on $7,500 bond.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, I can explain it to you this way after having talked to the police. Clearly, this case is not over. But he was charged a week ago with a state charge of making threats over the Internet, but not a threat having to do with the Virginia Tech style alleged attack that he was planning.

But the police say, it actually had to do with making threats on the Internet about someone that he claimed was ripping him off online while he was purchasing firearms online.

But be assured police say, it is very likely this man will be rearrested. Every alphabet soup federal agency is involved in this investigation. It is an incredible story.

Several weeks ago, this young man, 20-years-old, came into the Police Department in Homestead, Florida, came to the cops and complained that he had been ripped off online while he was buying hand gun. And he started talking about all these weapons he had. And the police went hmm. So they started their investigation, went at it.

Now, they are saying it is likely he will be rearrested again.

ROBERTS: Are police agencies questioning why the judge let him out in the first place?

CANDIOTTI: Well, it has to do with why -- with what limited information they had they could only charge him with a crime that allowed that low bond. But obviously they are keeping an eye on him. And as is said, it is likely he will be rearrested fairly soon, as soon as they put the rest of their case together.

ROBERTS: And obviously we will be hearing more about this. Susan Candiotti for us from our Miami bureau this morning. Susan, thanks.

And now it's time for a CNN hero, running can improve your health. But can it change your life? Anne Mahlum is helping people in need get back on their feet.

And she is today's CNN hero.

(BEGIN VIDEOTAPE)

ANNE MAHLUM: I'm out running between 4:30 and 5:00 a.m.. It is my solitude time. On my daily morning runs, I would see this group of homeless men. It is a problem in Philadelphia and for a long time, I started to realize that I'm moving my life forward every day, physically, emotionally, and these guys are standing in the same spot.

My name is Anne Mahlum, and I run an organization Back on my Feet where we use running to help the homeless move forward. When you join, Back on my Feet, you get a new pair of shoes, a hat, a long sweat shirt that says welcome to our team.

We run together three times a week, between 5:30 and 6:00 in the morning. We are going to do a mile and a half together. We have doctors, lawyers, homeless people. All you can tell is who is the fastest. You can't tell who is homeless and who is not. To be a runner it takes discipline, determination and a whole lot of heart. Mike was one of the original members. He grew up running the streets. But now he is going back to run the streets the right way.

UNIDENTIFIED MALE: When I first started, I never imagined preparing myself to run 26 miles. I feel like running another 13. Anne is helping people see the hero in themselves.

MAHLUM: Do we need homes? Yes. Do we need jobs? Yes. But imagine if you don't have anybody in your life who said I'm really proud of you. Back on my feet does just that.

(END VIDEOTAPE) ROBERTS: Let's go to wrap it up from New York. Thanks for joining us on this AMERICAN MORNING. We'll see you again on Monday. CNN NEWSROOM with Tony Harris and Fredricka Whitfield begins right now.

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