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American Morning

Secretary-General Ban Ki-Moon in Myanmar This Morning; China Appealing for Help; Price of Crude Hits New Milestone; Why Hasn't the U.S. Had a Female President?

Aired May 22, 2008 - 08:00   ET

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


GOV. TIM PAWLENTY (R), MINNESOTA: I think he's leading in the polls by a pretty reasonable margin. So he looks like the front- runner. I don't know if Governor Ventura is really interested in running for senator.
JOHN ROBERTS, CNN ANCHOR: Yes, he is.

PAWLENTY: I'm having a hard time believing that. Well, he's also out selling books. So you don't know for sure. But we'll see. The filings are in July. And in these three and four-party races, you shouldn't presume that that's going to cost the Republican candidate the race.

ROBERTS: All right. Governor Tim Pawlenty, it's good to see you again. Thanks for being with us this morning.

PAWLENTY: You're very welcome. Thanks, John.

ROBERTS: All right. Take care.

Kyra?

KYRA PHILLIPS, CNN ANCHOR: Senator Hillary Clinton pushing for Florida and Michigan's delegates to count. Senator Barack Obama heads back to Florida for fund-raising today continuing fresh attacks against presumptive Republican nominee John McCain's foreign policy and ties to lobbyist.

Both candidates agree that Florida needs a voice at the national convention. Take a listen.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Every American should be committed to voting. And that is why it's so important that we count those who already have. We cannot have a nominee who only represents 48 out of 50 states.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: My hope is, in a couple of weeks time, that we've won some more elections, we've won some more delegates, we've gotten the Florida delegation seated so that they're going to be at the convention. And then we're going to have a convention in August and I'm going to accept that nomination.

(END VIDEO CLIP) PHILLIPS: The Democratic National Committee will decide what to do with Florida and Michigan's delegate on May 31st. Now, the Senate Armed Services Committee hears from General David Petraeus and Lieutenant General Ray Odierno today.

Their nominations hearings are just ahead. Petraeus has been tapped to assume control of U.S. forces in the Middle East and Central Asia. And then Odierno has been picked to replace Petraeus as the top U.S. commander in Iraq.

CNN's Pentagon correspondent Barbara Starr joins us now with more.

Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Kyra, when this hearing gets under way, Senator Clinton is expected to be there, Senator McCain not. As you say General Petraeus tapped to move up to head the U.S. Central Command to look after all U.S. military interests in the Middle East and Iran may be at the top of the list.

In a prepared statement already submitted to the committee, General Petraeus puts down his marker about what he thinks needs to be done about Iran. He will call for diplomatic and economic leverage against the regime in Tehran. And he goes on and he says to the committee, quote, "We should retain as a last resort -- last resort being the keywords, perhaps -- the possibility of a range of military actions to counter Iran's activities."

Second up, General Odierno. Both men expected to win confirmation. Both men, Kyra, will be in place in the highest military jobs the day the next president of the United States takes office.

Kyra?

PHILLIPS: That's one of the toughest positions to have right now in this country. Barbara Starr, appreciate it.

ROBERTS: United Nation Secretary-General Ban Ki-Moon is in Myanmar this morning with a message of hope for victims of the devastating cyclones there. The U.N. says the cyclone killed more than 130,000 people in Myanmar and that 2 million people are now homeless. Ban Ki-Moon is expected to persuade the military government to accept more international aid.

China is appealing for help this morning. More than 3 million people still need tents after they lost their homes in the earthquake last week. Over 50,000 people are dead, 30,000 missing and no one has been rescued in the past 24 hours.

The Olympic torch is moving again in China today. The torch relay was held for three days of mourning. And ceremonies have been toned down out of respect for those lost in the earthquake.

PHILLIPS: Well, he's fighting for his Olympic dream. Double amputee Oscar Pistorius won the right to compete in the Olympics using his prosthetic blades called Cheetahs. I had a chance to speak to him earlier on AMERICAN MORNING and he told me he's fighting for all disabled athletes.

(BEGIN VIDEO CLIP)

OSCAR PISTORIUS, DOUBLE AMPUTEE RUNNER: This is part of the reason why I did it. You know, this wasn't only for myself. It was for the recognition of Paralympic sports. You know, to show that the device that we use doesn't give us an advantage. It's actually the hard work and the dedication of the athletes that pays off at the end of the day.

(END VIDEO CLIP)

PHILLIPS: Yes. So it gives you a bit of a hard time and laugh off suggestions that his blades actually give him an advantage. He says the blades are a disadvantage because it's harder to accelerate right off the block and it's harder to keep his balance.

You're watching the Most News in the Morning. And we've seen female leaders elected across the globe, but not in the U.S. Is the U.S. ready or not for a female president? We're going to talk with Lesley Stahl and Liz Smith, coming up.

ROBERTS: And the price of crude hits a new milestone this morning. $135 a barrel. Find out what's causing run away oil prices, that's ahead.

ROBERTS: Coming up on AMERICAN MORNING. The smiley face killings. Young man washing up in lakes and rivers. A sinister symbol left behind. Is it the mark of serial killers? The FBI says there's no link, but two retired detectives are trying to prove them wrong. Randi Kaye investigates ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JIM LACAMP, RBC WEALTH MANAGEMENT: Yes, the oil companies could be reinvesting some more of their profits into new exploration, but that's a really small part of the problem. We've had diminished output from Iraq, diminished output from Iran. Then you take the government takeovers of all these global oil supplies like you've seen in Russia and Venezuela and Mexico, and you're getting less production from these areas.

So the bottom line is the world is using more oil, and the world is producing less oil.

(END VIDEO CLIP)

ROBERTS: That was Jim Lacamp, an energy commentator earlier on AMERICAN MORNING explaining why oil prices are so high. And overnight trading oil hit a new record of more than $135 a barrel. Lacamp says that Americans have cut back on consumption due to the price increase, but supply is decreasing even more. And of course, places like China and India having cut back on their demand, either.

PHILLIPS: You know, John, interviewed the head of Shell Oil a number of weeks ago and he believes that the price is going to cap off at $6.50 a gallon.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Right.

PHILLIPS: It's not going to go higher than that so we have ways to go here.

VELSHI: It's still remains the supply and demand issue. We just heard somebody earlier this morning saying that at $135 a barrel, which is what oil hit overnight, gas should be $4.50 a galloon right now. Once again, 15th record in a row for gas prices. What is it going to do?

These companies, as Lacamp just said, they're making money at a barrel of oil that is a lot cheaper than $135. Let's show you how much they're making money at it. If you are drilling in land -- well, first of all, look at the way oil has gone since the beginning of the year. We got more than the 30 percent gain in the price of oil since January 1st. That's pretty dramatic given that it's May right now. It is May.

Let's talk about how much it costs to drill oil. If you're drilling straight down, thousand feet, it's accessible. It's easy to get to. It's just land. You could get oil for as little as $20 a barrel. If you're the oil company, it could be more expensive. And sometimes they have to drill sideways and do other things.

If you're drilling in shallow water offshore, that price could go up to $60 a barrel, depending again on the circumstances. If you're going into deep water, you're probably looking $60 a barrel. Brazil seems to have found massive reserves offshore. There's a lot of investment just to get to the point that it's costing $60 a barrel.

Shale mining, that's making oil out of shale. There's a lot of shale in the western United States. That could be $30 to $50 a barrel and oil sands, again, massive reserves of oil in the sands of Alberta. That is $50 to $60 a barrel.

Again, though, that there are other complications about that -- transportation, how far that oil is from where it needs to be, things like that. But here's an idea that generally speaking, the oil industry believes that at $60 a barrel, everybody is generally making some money on oil. You might want it to be $80 to be really profitable.

At $135 a barrel, I can get oil out of this laptop. I mean, you can get oil out of anything. So it doesn't need to be this expensive. The one advantage is when it's this expensive, we start looking for remarkable alternatives to oil. So we will find oil -- find fuel, not necessarily oil -- we'll find some way of fueling our homes and our cars in some way that isn't from oil.

ROBERTS: Great article in National Geographic I was reading going to bed last night, talking about even these new finds are only a fraction of the finds that they used to come up with, you know, going back to the 1960s and back to the 1940s when they found this huge, enormous oil fields in Saudi Arabia.

VELSHI: And what that means is that we have to revise our estimates about -- at our current levels of usage and growth. How much oil is going to be left in the world? And remember, as much as we can cut down on our driving and things like that -- China, India, and the rest of world are a bigger part of this equation that America is right now.

ROBERTS: China's demand going up at a 12 percent per year.

VELSHI: Remarkable. Yes.

PHILLIPS: Thanks, Ali.

VELSHI: OK.

PHILLIPS: Well, a quick check of our "Quick Vote" question. Who or what is to blame for sky-high oil prices? Right now, 29 percent of you say it's oil companies. 13 percent blame OPEC. 35 percent say it's the government's fault for not stepping in. 23 percent say consumer demand is behind the spike. Keep those votes coming in.

Also, send us your e-mail. Tell us why you think prices are so high. And if you may have an idea on how to help, let us know. Just head to cnn.com/am.

ROBERTS: Well, with gas prices shattering one record after another, we are putting our own CNN correspondents to the test -- get to work using the bicycle, road and rail. You might be surprised to find out who makes it to work the fastest.

PHILLIPS: Also a threat of tornadoes today. Rob Marciano tracking extreme weather.

Hi, Rob.

ROB MARCIANO, CNN METEOROLOGIST: Hey, guys. You're looking at the threats today and it looks like it's going to last right through the weekend. We are stuck in a pattern that could be damaging. Complete weather coming up when AMERICAN MORNING comes right back

(COMMERCIAL BREAK)

(WEATHER REPORT)

ROBERTS: All right. We can count on you keeping a close eye on it. Rob, thanks.

PHILLIPS: You're watching the Most News in the Morning. Finland has one, so does Chile, Liberia. So why hasn't the U.S. had a female president.

ROBERTS: And what is the fastest and cheapest way to commute? We're sending three of our correspondents on an amazing race to find out.

(BEGIN VIDEO CLIP)

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: We're at the Bethesda Station.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Connecticut Avenue is moving well.

TOM FOREMAN, CNN CORRESPONDENT: Right now, I'm cutting underneath some of the heaviest traffic.

(END VIDEO CLIP)

ROBERTS: So, who won our amazing race? Stay tuned. You're going to be surprised to find out.

(COMMERCIAL BREAK)

PHILLIPS: And breaking news this morning. Record high prices for oil and gas. Oil actually shot up $5 to more than $135 a barrel. But it's back below $134 right now. Gas prices jumped more than 2 cents to a record $3.83 a gallon, and that's according to AAA. It's the 15th straight record high.

ROBERTS: You know what? We saw Susan Lisovicz reporting on gas prices yesterday. And I got this feeling in the pit of my stomach, where does this end? And what's it going to do to the economy?

PHILLIPS: I don't think it's going to end. Well, we've interviewed the oil execs and we've talked with Ali Velshi and so -- we don't know. Even the speculators have a hard time speculating.

ROBERTS: Yes, it's kind of nothing but bad right now. So, what is the answer to high gas prices? Well, we asked CNN's Zain Verjee, Tom Foreman and Jamie McIntyre to commute from home to our Washington Bureau by car, train and bicycle to see who would make it to work first. Take a look.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: I'm going to beat these two boys by taking the Metro to the bureau. One -- a little bit of a walk and one straight shot.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: I'm driving and I fully expect to be thwarted by Washington rush hour traffic.

TOM FOREMAN, CNN CORRESPONDENT: I'm going on the bicycle.

VERJEE: OK. We're at the Bethesda Station. It is 8:46 in the morning. It's going to cost me $2.90. MCINTYRE: Connecticut Avenue is moving well. We've got a shot at this.

FOREMAN: Right now, I'm cutting underneath some of the heaviest traffic that's above this tunnel that I'm in.

VERJEE: It is 9:05. It's not too crowded. Wonder how Foreman is?

FOREMAN: This is where you love it. Everybody is caught in traffic and you just go smoking right past them.

MCINTYRE: We are really in the homestretch now. If this car would just go. Go, buddy, go. Come on. We're in a race here for crying out loud.

VERJEE: Here we are, Union Station, and it's 9:15.

MCINTYRE: Here is CNN. You haven't seen Tom Foreman or Zain Verjee, have you? All right.

VERJEE: 9:21.

FOREMAN: I was getting killed on time here.

MCINTYRE: Thank you, thank you. Once again fossil fuels win out.

VERJEE: Whoa! I won.

FOREMAN: I fear we have lost. When did you guys get here? Like five minutes ago? Because I'm thinking --

VERJEE: He beat me by eight minutes.

FOREMAN: Really? How did you beat her?

MCINTYRE: Took the back way.

FOREMAN: How much did we spend on our commute today? I'm going to start -- let me start the bidding at zero.

VERJEE: $2.90.

MCINTYRE: It only took me about $4, maybe a gallon of gas to get here.

FOREMAN: Do you know what the best thing is -- options.

MCINTYRE: Jamie McIntyre.

VERJEE: Zain Verjee.

FOREMAN: Tom foreman, CNN, Washington.

(END VIDEOTAPE) ROBERTS: And Zain is in our Washington Bureau for us now.

Zain, it looks like you folks had an awful lot of fun doing that.

VERJEE: We did. We did. It was good fun and got us all out of our regular State Department, Pentagon beats and it was good. Tom Foreman was very sweaty, so we needed to factor more time in there.

ROBERTS: You know, Kyra, said he was very sweaty, as well. You got to think -- you know, he said his commute costs him nothing. Of course, that excludes the cost of the bicycle and excludes of course the --

PHILLIPS: The shower.

ROBERTS: The collateral damage, too, and the cost of you know, reduced productivity there in the Washington Bureau because everybody was holding their noses as he pass by.

PHILLIPS: Meanwhile, my guess is Zain popped up and had a lot of conversations on the train because that's how Zain is.

VERJEE: I did.

PHILLIPS: She's far from introverted.

VERJEE: I did. Well, I did. I talked to a bunch of people and they were all saying the same thing, you know. We're no longer taking our cars because of the high price of gas and we're saving hundreds of dollars by not having to park it and drive it. And the metro is just sufficient. And they get their morning reading done. I read "In Touch" magazine on the way, too.

PHILLIPS: We saw you reading "The Washington Post." Did you score a day as well, Zain?

VERJEE: There was another magazine in there. It was the latest on Brad and Angie, actually.

ROBERTS: I think a little too much information on the dating front there.

PHILLIPS: There you go. Yes, she didn't answer the dating part.

ROBERTS: Zain, good to see you. Thanks. Don't forget catch "ISSUE #1," noon Eastern here on CNN with Ali Velshi, Gerri Willis and the CNN money team.

This morning, we are looking at the reasons why oil prices are so high. And here is one of them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Recent militant attacks on oil pipelines here in Nigeria are one reason driving up gas prices worldwide.

(END VIDEO CLIP)

ROBERTS: A visit to the volatile and sometimes violent fight for oil in Nigeria, that's just ahead.

PHILLIPS: And polls show that most Americans say they would vote for a female president from their own political party if she were qualified. So why hasn't the U.S. had a female president? We ask a couple of high-powered females in the media about it, coming up next.

(COMMERCIAL BREAK)

PHILLIPS: More than 40 countries have had at least one female president or prime minister during the last 50 years. So why has it taken the U.S. this long to seriously consider a female candidate? Joining us now "60 Minutes" correspondent Lesley Stahl and syndicated columnist Liz Smith. Both are founders of the Web site "Women on the Web."

Good morning to both of you.

UNIDENTIFIED FEMALE: We call that wow.

UNIDENTIFIED FEMALE: We actually call it wow-o-wow.

PHILLIPS: Wow-o-wow.

UNIDENTIFIED FEMALE: Dot com.

PHILLIPS: Well, we should all know that, I guess. We will spread the word now. Let's just start off by answering the question. What has taken so long? Both of you have interviewed these world leaders -- female world leaders. Why has it taken so long in the U.S.?

LESLEY STAHL, "60 MINUTES" CORRESPONDENT: You know, it's my question. It may be the parliamentary system. All the women in these other countries come up to the system -- or their fathers die and they inherit. We've never been able to do this. This country, the home of feminism, the women's movement.

But I think that whether you support Hillary or not, whether you're a Republican or Democrat, if you're a woman, somewhere in your heart you feel so proud that she showed the strength and stamina that she has. And we now know a woman can be president?

PHILLIPS: Liz, what do you think? Why is it taking so long? And your immediate reaction.

LIZ SMITH, SYNDICATED COLUMNIST: Well, we still have -- you know, all of these hideous remnants of sexism and as much as I hate to say it because I've always been a kind of failed feminist. But I mean, Gloria Stein always said I have failed. But anyway --

PHILLIPS: Well, you haven't. You've made a lot of inroads.

SMITH: I think that, you know, only 13 percent of Congress are female. The statistics are terrible. 13 percent of people in America say they would not vote for a woman no matter how qualified she was.

So we have that hanging over us, but we're making progress. And Senator Clinton really has struck a blow for women, whether she won't probably get the nomination, but it's amazing what she's done. How she's activated this feeling.

PHILLIPS: And even Barack Obama commented -- look, she's paving the way for my two daughters in the future. I want to get your reaction. Betsy Reed with "The Nation." I thought this was a brilliant idea. She collected all the things that have been said about Hillary Clinton since she got into the race. Talking about gender biased against Clinton.

She's been likened to a Lorena Bobbitt, a hellish housewife, described as witchy, a she-devil, anti-male, a strip teaser. Her loud and hearty laugh has been labeled the chuckle. Her voice compared to fingernails on a blackboard. There one Fox News commentator said when Hillary Clinton speaks, men hear take out the garbage. That is just brutal. We're not hearing that about Barack Obama or John McCain.

STAHL: Look, I think that there are polls done for everything. I don't know that there's ever been a poll done on how many Americans are jerks. I bet there's a seven percentage. But I think that's the glass is half empty. The glass is more than half full. She won half the Democratic votes. She won many of those debates. She showed that a woman has the mental, physical, intellectual strength and stamina, forcefulness to be commander-in-chief, to be president.

SMITH: She raised a lot of money, too.

STAHL: And that's right. And (INAUDIBLE) couldn't do that.

(CROSSTALK)

PHILLIPS: She called for it and it happened.

SMITH: She said yesterday and, of course, she's a politician. I don't know if this is true or not. But she said that she had won more votes than any Democrat in history. I don't know. But --

STAHL: She's counting Florida and Michigan.

SMITH: Yes.

PHILLIPS: And do you think that she is staying in the race because she has a chance to get in there and actually be president of the United States, or do you think she's staying in because women are coming up to her. I mean, Candy Crowley told us every event they go to, the women are saying, you are doing this for me. I'm inspired by you. Now I have the will to keep going. So she's doing it for generations down the road.

SMITH: I think there are a couple of reasons she's doing it. I mean, the longer she shows her power and how irritating she is to the other side, the more she has power to deal later to get the things she wants. There's no question she'll be one of the most formidable figures in the United States, even if she doesn't get the nomination.

PHILLIPS: If not Hillary Clinton, who could it be?

STAHL: You know, well, there are lots of governors and traditionally, our presidents have come out of that governor core. I just think that she's now opened the door and that a lot of women will run. And no name just pops in.

SMITH: Oh well, we know that Oprah could be president if she wants to be.

PHILLIPS: Really? Are you being serious?

SMITH: No.

PHILLIPS: Oh, we had a headline right there. I'm seeing our next story.

SMITH: Oh, don't you think she would make a formidable candidate if she decided?

PHILLIPS: And here is somebody that said she was going to stay out of politics. The next thing you knew she was stepping up and more people turned out at that rally apparently to see her, we were told Barack Obama. It was very interesting to see the writeups on that. Do you think Hillary Clinton has been criticized the way she's been criticized because she is a female or because she hasn't had the delegates?

LESLEY STAHL, FOUNDER, WOWOWOW.COM: I really think there is that tiny percentage of jerks who are going to make these anti-female, ridiculously funny, I suppose, statements. Let's have a sense of humor about it. And it's a small percentage. And we should flick it off. We shouldn't draw attention to it. We should say, oh, come on.

PHILLIPS: Don't even take it seriously?

STAHL: Look the other way. It's ridiculous. She got at least half the votes. Let's say she got half the votes in the Democratic primary. It's an unbelievable, huge, gigantic leap forward for women in terms of power.

PHILLIPS: We'll be talking about it, writing about it, no doubt.

UNIDENTIFIED FEMALE: Lesley is so positive. I think that is fabulous.

PHILLIPS: I think you have to be.

STAHL: On wowowow.com, we have a question today. The question of the day is would you be safe with a woman as commander in chief. If you go on the site, answer that question for us. We're trying to take a little poll.

PHILLIPS: All right. All ladies and men, you heard it right there. Ladies, thanks so much. Appreciate it. John?

JOHN ROBERTS, CNN ANCHOR: Three possible contenders for vice president are heading to Senator John McCain's home for a Memorial Day barbecue. Among the 18 invited guests, Florida Governor Charlie Crist, Louisiana Governor Bobby Jindal, and former Massachusetts Governor Mitt Romney. Former Arkansas Governor, Mike Huckabee, was invited but can't make it because of a previously planned vacation.

Earlier on "AMERICAN MORNING," we spoke with Minnesota Governor Tim Pawlenty. He told me what he or any governor would bring to a McCain candidacy.

(BEGIN VIDEO CLIP)

GOV. TIM PAWLENTY (R), MINNESOTA: Senator McCain is going to have a lot of great choices to look at, probably dozens of people. But for somebody who is a governor, you would bring executive experience, you would bring domestic issues like education and health care reform and in the case of many governors, they have some international experience, as well. But these decisions are going to be complex, they're going to be personal based on geography, based on politics and credentials and so many other things, John. That will be obviously up to Senator McCain.

(END VIDEO CLIP)

ROBERTS: Pawlenty's state of Minnesota could be a big coup for Senator McCain. Democrats have won it every year since 1960.

Breaking news on oil prices this morning; a barrel of oil hit a record high of $135 a barrel, shooting up $5 over a 24 hour span before pulling back a little bit this morning. Analysts say one thing driving up the price of oil is violence in the oil fields of Nigeria, one of America's biggest suppliers. CNN's Christian Purefoy take us inside Nigeria for an exclusive report that you'll see only on CNN.

(BEGIN VIDEOTAPE)

CHRISTIAN PUREFOY, CNN CORRESPONDENT: We filmed these militants two years ago, singing about their suffering. And now, some of that suffering is being felt as far away as the United States. Recent militant attacks on oil pipelines here in Nigeria are one reason driving up gas prices worldwide.

UNIDENTIFIED MALE: In an interesting sense, there are American who is in their middle and lower economic bracket is actually paying for that systemic failure of the Nigerian government over the last 30 years in doing something structurally positive about the delta.

PUREFOY: Nigeria is America's fourth largest oil supplier. These heavily armed men say they're fighting for a greater share of that oil well. The Nigerian government has proposed a peace summit to find a solution to the region's problems. But in the meantime, while a barrel of oil from the Nigeria delta costs more than $120, 70% of the people here live on less than $1 a day. So far, the militant attacks on oil facilities are small, but the fallout is substantial.

JIM LACAMP, RBC WEALTH MANAGEMENT: Anytime a pipeline is affected, anytime any production gets shut down, you see oil prices jump up $1 or $2 a barrel just because there is no slack in the system.

PUREFOY: The troubles don't stop at the gas pump. Militants target American oil workers. Since militants released Megan Loveman two years ago, they have kidnapped hundreds more foreign workers and released only once a ransom was paid. Oil companies like Shell and Chevron have invested heavily in security for their staff and facilities. But with the militants threatening more attacks to come, it's unlikely they'll be able to protect the American consumer from the soaring price of oil.

Christian Purefoy, CNN, Nigeria.

(END VIDEOTAPE)

ROBERTS: It sounds awfully familiar. Florida in the middle of an election mess. A new film is recounting the 2000 recount. Is it more fact than fiction? What both sides are saying.

PHILLIPS: Coming up on AMERICAN MORNING, the smiley faced killings, young men washing up in lakes and rivers and a sinister symbol left behind. Is it the mark of serial killers? The FBI says there's no link. Two retired detectives are trying to prove them wrong. Randi Kaye investigates ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

PHILLIPS: Well, it could be the twisted calling card of a serial killer. Smiley faces left at the water's edge near where the bodies of several college aged men were found. Police wrote them off as accidental drownings. Now there are new investigators on the case and CNN's Randi Kaye has the exclusive.

RANDI KAYE, CNN CORRESPONDENT: It's a story that gets more bizarre with every day, Kyra. Two retired detectives from New York City's police department say the unexplained drownings of at least 40 college aged men are all connected and may all be homicides. One of the cases was ruled a murder back in 2006 after a tip from an informant. And that case was really the break through for these detectives. The retired cops, Kevin Gannon and Anthony Dwartay (ph), looked at a dozen locations where the bodies may have entered the water and found smiley faces painted on trees or on the ground near the water's edge. They think that those very creepy smiley faces are the killer's trademark. We went along with them to upstate New York to check out the latest smiley face. Take a look.

(BEGIN VIDEOTAPE)

KAYE: We find it on a tree at the Port of Albany, New York. A smiley face painted in white staring back at us.

What do you see here? BILL SOSTAK: What I see is a circle, two eyes, a nose, no mouth, but it's clearly represents a smiley face.

KAYE: Bill Sostak believes this smiley face was left behind by someone who killed his son. 21-year-old Joshua Sostak's body washed up in the Hudson River last month. He disappeared just before Christmas after a night out drinking with friends at this bar in downtown Albany. Is he the latest victim of the smiley faced killers? Retired detectives Kevin Gannon and Anthony Dwartay (ph) came to find out they believe a gang of killers may have murdered as many as 40 college aged men in nearly a dozen states, leaving these sick smiles as their trademark.

Tell me what you believe is happening to these students.

KEVIN GANNON, RETIRED NYPD SERGEANT: I believe that these young men are being abducted by individuals in the bars, taken out and at some point even held for a period of time before they are entered into the water.

KAYE: The murders, they say, are staged to look like drownings, including eight in the town of Lacrosse, Wisconsin.

GANNON: Could eight young men from one small little city all come out of the bar, walk three blocks and fall into the river? That did not make sense to me.

KAYE: Every death had been ruled an accidental drowning. Case closed.

Do you think it's possible all of these drownings around the country could be a coincidence?

SOSTAK: I find it ironic that so many college aged males fitting the same profile wind up in the river after a night out.

(END VIDEOTAPE)

PHILLIPS: And here's what's wild, Randi Kaye was an investigator reporter in Minneapolis and this was a story that you were on.

KAYE: It was. I actually covered a lot of these bizarre drowning deaths. And nobody could really explain them. As I mentioned in the story, there were eight drownings. Nobody could explain it in Lacrosse, Wisconsin, just a few hours away, we had three in one week in Minneapolis. This has been going on for quite some time.

PHILLIPS: Do detectives think it's one person or a group of killers?

KAYE: It's very widespread. We're talk about at least 40 drownings in 11 states, 25 cities. Some of them happened on the same day, some within just hours of each other. They don't think this can be the one of one person. They think it has to be some network of smiley face killers out there and they found some markings that matched some of the crime scenes and they think that it looks like gang graffiti, but they don't think it's a gang in the true sense of gang, but they do think it is a gang of killers taunting police with these smiley faces.

PHILLIPS: That is eerie.

KAYE: It is eerie especially to see it right there. Some of them have the devil's horns on them and just some very strange markings.

PHILLIPS: We'll follow the investigation with you. Randi Kaye, thanks.

KAYE: Thank you.

PHILLIPS: John?

ROBERTS: The United States is reaching out to touch Cuba. Coming up we'll tell you why President Bush thinks cell phones could bring Cuba closer to democracy.

And John McCain is trying for African-American votes, we'll tell you what he's doing to try to win them over coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

PHILLIPS: This just in, President Bush apparently on his way to Ft. Bragg, North Carolina. Now he will see for himself those shoddy barracks that we first reported on seeing on that online video posted on You Tube. He's expected to speak to U.S. troops while he's there. We'll be following it.

ROBERTS: The candidates are campaigning in Florida this week, partly to court the Cuban American vote. Additionally, national candidates have supported the Cuban embargo. That is changing this time. Even the White House is loosening its stance if ever so slightly. CNN State Department correspondent Zain Verjee is live in Washington for us this morning.

Good morning, Zain.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, John.

The U.S. is taking a small step here, but it's unlikely to significantly change things in Cuba.

(BEGIN VIDEOTAPE)

VERJEE: It was showy at the white house, but only a slight shift in U.S. policy toward Cuba.

PRES. GEORGE BUSH, UNITED STATES: We're going to change our regulations to allow Americans to send mobile phones to family members in Cuba. VERJEE: That's the latest U.S. dare to Raul Castro to reform.

BUSH: If Raul is serious about his so-called reforms, he will allow these phones to reach the Cuban people.

VERJEE: The hope is that more dialing and texting will increase Cubans' freedom of expressions and links to the outside world. Cuban experts say the old strategy of trying to isolate Cuba using trade and travel embargoes has been a failure. Castro remained in power, then passed the mantle to his brother, Raul. Some say change is happening under Raul Castro. For the first time, he is allowing Cubans to buy cell phones and computers.

SARAH STEVENS, CENTER FOR DEMOCRACY IN THE AMERICAS: These things are important to Cubans, whether or not they can afford them. The fact that the government is hearing them and understands that these are their desires and their wishes and is acting on that is very important.

VERJEE: Cuba is galloping on to center stage on the campaign trails with candidates targeting the key Cuban American vote in Florida.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Over time, I would be willing to meet and talk very directly about what we expect from the Cuban regime.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Unconditional meeting with Raul Castro. These steps would send the worst possible signal to Cuba's dictators.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I believe that we should have full diplomatic engagement where appropriate.

VERJEE: Experts say the majority of Cuban Americans want travel and other restrictions eased so tough talk may not guarantee votes.

STEVENS: The political parties are still, you know, believing in this myth that they have to sort of toe the heart line and that that is what the Cuban American community wants to hear, and I think they're wrong.

(END VIDEOTAPE)

VERJEE: There's still a lot to be worked out about the cell phones. It's not even clear if the cell phones sent from the U.S. to Cuba will even work there.

John?

ROBERTS: On another topic, the secretary of state was taking the heat yesterday for foreign policy regarding Iran. What happened there?

VERJEE: Secretary of State Condoleezza Rice insists the Bush administration's policy toward Iran is successful. Here is what I asked her.

(BEGIN VIDEO CLIP)

VERJEE: Senator Obama has called your Iran policy a complete failure saying that Bush administration policy, as a result of it, Iran is now the greatest threat to the U.S. and Israel in the Middle East for a generation.

CONDOLEEZZA RICE, SECRETARY OF STATE: I say no reason to comment on what I'm sure throughout the period of time in which we are entering our political season is going to be significantly overheated rhetoric about foreign policy. I'm simply not going to comment. I'm simply not going to comment.

I will note that the Iranian problem is not just America's problem. I would like to say to see what other options there are for the international community given that this policy is one that I think is the best course for us.

(END VIDEO CLIP)

VERJEE: The U.S. has been using a strategy of carrots and sticks, really, on one hand about to give Iran a refreshed package of incentives and on the other hand, slapping sanctions on it to try to get other countries to start doing business with Iran and the ultimate goal is to get it to suspend key enrichment.

ROBERTS: We'll be hearing a lot of that between now and November. Zain Verjee, thanks.

Kyra?

PHILLIPS: "CNN NEWSROOM" just minutes away. Fredricka Whitfield is at the CNN Center with a look at what's ahead.

Hey Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you, Kyra.

Issue number one in the "NEWSROOM," gas and oil prices rocket to new highs today, crude almost doubling since last summer. Oil execs are back in front of congress again today to explain.

And President Bush gets a look at army barracks today. Poor housing conditions at Ft. Bragg supposed in a You Tube video.

And a police woman goes above and beyond in China. The new mother is breast feeding eight other babies, their mothers lost in the earthquake.

You're in the "NEWSROOM" top of the hour, Kyra.

PHILLIPS: Wow, you caught my attention with the breast-feeding there. That's incredible.

WHITFIELD: And she's helping to save and keep these babies alive.

PHILLIPS: An amazing woman. Fred, thanks.

Winning votes from African-Americans could be tough for John McCain, especially if he runs against Barack Obama. We're going to tell you what he's saying to try and convince the voters coming up next.

(COMMERCIAL BREAK)

PHILLIPS: We've already seen him on Ellen Degeneres. Now John McCain is sitting down with Essence magazine, his first interview with an African-American magazine and he was asked about challenges faced by African-Americans like unemployment and AIDS. Senator McCain told Essence, "My general overall mission is to continue to erase barrier that are based on race, wherever policies are needed and of course to improve everyone's opportunity. I believe education is clearly the remaining barrier. We have an unacceptable situation in America today where lower income people do not have the same access to the quality education that higher income people have."

Lola Ogunnaike spoke with the Essence reporter who interviewed Senator McCain. She joins us now to take a look at it.

I'm curious, what did the reporters think of McCain, did the reporter think this was a genuine effort that he needed to do because he's not getting those votes?

LOLA OGUNNAIKE, CNN CORRESPONDENT: A combination of both. She found him to be very sincere, and she felt he was a bit stiff, but takes his military background. But if you think about it I mean Essence has nearly 2 million readers. 6 out of the 10 black voters are women. They're a very important voting block this season. And he wants to prove to people that he's not going to be president for one segment of society, but for all Americans. He told the Essence reporter that he plans to go to the NAACP convention this summer. He's making a concerted effort. He does not want to ignore African- Americans and he understands their power during this election.

PHILLIPS: What did he say about a general election?

OGUNNAIKE: Well, about a general election, he said particularly that he doesn't want the vicious campaign to go negative against Obama. He doesn't want it to get ugly. He says he's going to be tough. We aren't going to toast marshmallows, which I found funny, but it is going to be fair with clear lines drawn between us. It is not going to be personal attacks or impugning anyone's character or patriotism. No below the belt jabs. No idea whether or not the people around him may launch personal attacks. For McCain, he says he's not.

PHILLIPS: No smores for them. What did he say about Condi Rice as a possible running mate? That's been a talk in the community.

OGUNNAIKE: People have been batting around that idea. He said I think Condi Rice should be a considering for any job because she is a true American in every respect. So he's high on Condi. No commitments there. But he didn't shoot down the idea.

PHILLIPS: He didn't say no. He didn't say no. Interesting. Lola Ogunnaike, thanks.

John?

ROBERTS: Eight years in the making, a new movie about the year 2000 recount. We know who won, but what party comes out on top in the film? A first look ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Coming up now at three minutes to the top of the hour. 36 days loaded with drama that changed our nation, packed into a couple of hours into a new movie about the 2000 Florida recount.

PHILLIPS: But is it less Florida and more Hollywood? Susan Candiotti has a sneak peek at "Recount" the movie.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT: From angry demonstrations to those surreal moments with hanging Chad. Recount relives those turbulent 36 days in Florida, 2000, when the presidency was on the line.

UNIDENTIFIED FEMALE: What I think you will come away from this feeling is my vote counts, how I vote counts.

CANDIOTTI: The HBO movies whose parent company Time Warner also owns CNN, stars Kevin Spacey. He plays Ron Klain Al Gore's chief legal adviser during the recount. Nova Southeastern University history professor Charles Zelden says if the movie is true to history, it could be a real eye opener.

CHARLES ZELDEN, NOVA SOUTHEASTERN UNIVERSITY: A recount is like a chess game. Everyone knows my move. Everyone knows your moves. It's a question of who makes the right move at the right time.

CANDIOTTI: So how accurate is the movie? Here's a political free for all over a sample ballot.

Here is the Hollywood version.

Everybody remembers Florida secretary of state Catherine Harris certifying the vote. Here's actress Laura Durham (ph) playing her.

And small oval bits of paper quickly became famous.

UNIDENTIFIED MALE: Chads.

UNIDENTIFIED MALE: What?

UNIDENTIFIED MALE: No "s."

UNIDENTIFIED MALE: The plural or Chad is Chad? UNIDENTIFIED MALE: That's democracy.

CANDIOTTI: Zelden, whose own book on the recount will be published in the fall and says there could easily be another crisis come November if the election is close.

ZELDEN: We have as broken a system as we had in 2000, in some ways more broken.

CANDIOTTI: Whether "Recount" is more fact, fantasy or somewhere in between, no one can argue with HBO's timing.

Susan Candiotti, CNN, Miami.

(END VIDEOTAPE)

ROBERTS: A little recount, a little wag the dog in there. The film debuts Sunday night on HBO.

PHILLIPS: Now a final check of our Quick Vote question. Who or what is to blame for sky high oil prices? 31 percent of you said oil companies, 11 percent said OPEC, 37 percent said the government for not stepping in, 20 percent said consumer demand is behind the spike.

ROBERTS: We also got a lot of e-mails on this morning.

Kayne from Bryn Athyn, Pennsylvania writes, "Our dollar is weak and if your currency is weak anything you import will become ore expensive. We as Americans need to wake up to the obvious fact that our failing economy is intrinsically linked to our poor monetary policy."

PHILLIPS: And Robert from Raleigh, North Carolina sent this. "The government, in particular the Bush administration, can take the blame for doing little or nothing to wean the nation off of our huge appetite for oil."

ROBERTS: And John from Beverly Hills blames, "The instability in the middle east due to a war in Iraq. This is a huge factor in the cost of oil, and why the futures are so much higher than the actual cost of oil."

Thanks so much for joining us on this AMERICAN MORNING. We'll be back again tomorrow.

PHILLIPS: Sure will. CNN NEWSROOM with Tony Harris and Fredricka Whitfield begins right now.