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American Morning
Kyrgyzstan Evicting U.S. From Airbase; Dow Continues to Plummet; "The Post's" Apology Falling Short; Conflict Minerals Funding Congo War; Iran is Now Nuclear Capable; Leaked Photo May Mean Trouble for Chris Brown; Pelosi's Overnight Trip to Italy Sparking Controversy; Oscar Predictions
Aired February 20, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MEGAN MCCAIN, JOHN MCCAIN'S DAUGHTER: And with that message, you have to utilize the medium of the Internet, which President Obama did obviously incredibly. And I think that the Republican Party really has a long way to go. And I know there have been a lot of tech meetings recently with the GOP, but I don't think this is progress. I think they need to learn on how to harness the message that is actually something my generation will want to be a part of.
KIRAN CHETRY, CNN ANCHOR: Very interesting. Right now, though, apparently your dad's Web site -- I mean, your dad's Twitter is the most viewed Twitter in Congress right now. So there you go.
MCCAIN: And that's fantastic. Yes, I am glad that he is twittering. I think it's fun. I mean, I'm not -- I don't Twitter. I'm not -- I'm not the biggest fan of Twitter, but I do think it's cool that he is actually, you know, coming to it.
CHETRY: All right. Megan McCain, great to talk to you today. Thanks for joining us.
MCCAIN: Thanks for having me.
CHETRY: John?
JOHN ROBERTS, CNN ANCHOR: Crossing the top of the hour now, Kiran.
And breaking news this morning. Disturbing news that Iran could be close to having a nuclear weapon or at least the raw materials to make one. Scientists are looking at United Nations data say that Iran has reached nuclear breakout capability. That means that they have enough fuel to build a single bomb, but officials say major obstacles remain to building a nuclear weapon.
Our Christiane Amanpour is going to join us to talk about what this could mean for the new administration and the balance of power in the region. That's just ahead.
Israel President Shimon Peres has picked right-wing Likud Party leader Benjamin Netanyahu to form the next Israeli government. He has six weeks to do that and it puts him in line to be the next prime minister if he can accomplish it. He may, stress, may have to work with Kadima Party leader Tzipi Livni. Kadima actually won one more seat in parliament, but neither party earn a majority in recent elections.
Also breaking this morning. Secretary of State Hillary Clinton addressing the provocative language from North Korea in a one-on-one with CNN. Clinton says Pyongyang's threats against its neighbor to the south needs to end. She hopes the North will step back from the brink of the war and return to the negotiating table.
Here is more of what Mrs. Clinton said, including remarks on the rising economic tensions between the U.S. and China.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, U.S. SECRETARY OF STATE: Clearly, the new administration has demonstrated through what the president has said, I have said and others, that, you know, there is an opportunity for North Korea to return to the six-party talks to begin working in a thoughtful way toward the denuclearization and a verifiable and complete manner as it had agreed to. And then all of a sudden, these insults and these provocative statements start coming across the border.
I think that the Chinese economy is incredibly dependent upon the American consumer. That has been the source of a lot of the growth in China. You know, they have 20 million migrant workers who are unemployed as of today. They are having to do their own stimulus package. So, you know, how China moves through this economic contraction is not determined yet, just like how we're going to move through. We've got to work together.
We're going to have competition with China? Of course. You know, you have competition with all kinds of countries. I mean, that's nothing new. But we also hope for cooperation in a peaceful and productive manner on a range of issues where we think that, you know, China and United States have comparable interests, whether it be global climate change and clean energy, the economic challenges we face, and shared security issues, like Afghanistan and Pakistan and so much else.
(END VIDEO CLIP)
ROBERTS: Secretary of State Hillary Clinton talking with our Jill Dougherty earlier this morning. And it will be fascinating to watch how the relationship between the United States and China evolves over the next four years.
CHETRY: You know, very interesting. And also, the talk that she had about North Korea as well. A real ratcheting of tension between North and South Korea right now, and that's another huge thing for Secretary Clinton to have to tackle.
ROBERTS: Yes. And appointing an envoy now, too, to be tasked with the North Korea policy. So it looks like this administration certainly will stay engage, too. CHETRY: And we also have more breaking news this morning.
It's a development that could hurt the expanding U.S. war effort in Afghanistan. The country of Kyrgyzstan says that the U.S. has six months to leave an air base on its soil. It is the only U.S. air base in central Asia, and it's a major re-supply hub for the war in Afghanistan.
So Pentagon correspondent Barbara Starr is working her sources on this. Tell us just how crucial this is and what you're learning, Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kiran, by all accounts, Kyrgyzstan now has handed the Pentagon the eviction notice. Get out in six months. This had been expected but behind the scenes, what is really going on? The two sides still talking.
Defense Secretary Gates, earlier today, saying this is not a closed issue yet. Even though they have the eviction notice, the two sides want to see if they can work out a new arrangement. It all revolves around money. How much rent the U.S. is willing to pay this country of Kyrgyzstan to be its landlord for this vital re-supply base into Afghanistan.
Now, as all of that is going on, the U.S. is not counting anything -- on anything to actually get resolved there, talking to two other countries in the region, seeing if they can come to another arrangement in case they really do have to leave Kyrgyzstan. What's behind all of this? The U.S. strongly believes it's Russia. Russia still wants its influence in central Asia and wants the U.S. out. Gates saying they're going to keep talking, but he's not willing to stay at any price.
Kiran?
CHETRY: Barbara Starr for us this morning. Thank you.
ROBERTS: And turning now to breaking financial news. A miserable trading day from Asia to Europe after the Dow dropped to a six-year low. That sends Japan's Nikkei Index near 26-year low, but Asia's biggest losses today are in South Korea with stocks dropping nearly four percent.
Further west, London's FTSE hitting a three-month low with German and French markets down more than three percent. Dow futures also down this morning. President Obama talked up efforts to stop the bleeding during his first international trip to Canada yesterday.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: First, we shared a commitment to economic recovery. The people of North America are hurting and that is why our governments are acting. This week, I signed the most sweeping economic recovery plan in our nation's history. Today, the prime minister and I discuss our respective plans to create jobs and lay a foundation for growth. The work that's being done by this government to stimulate the economy on this side of the border is welcomed, and we expect that we can take actions in concert to strengthen the auto industry as well. We know that the financial crisis is global, and so our response must be global.
(END VIDEO CLIP)
ROBERTS: President Obama there in remarks to a joint press conference with Canadian Prime Minister Steven Harper.
For more on world markets, we turn now to our Stephanie Elam who is "Minding Your Business" this morning.
And now, we had Jeff Sachs and Chrystia Freeland on earlier today, and they couldn't find any good news out there.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, I know. I heard that. That wasn't good. That wasn't really funny and good news. And you heard how the president was stressing the fact that this is a global problem? Well, that's exactly why we're seeing such a sell-off. If you look at the way the markets reacted yesterday.
The fear here is that all of the plans that the Obama administration is putting out there right now, that they are not going to be enough to stave the bleeding of the overall global economic recession, and that's the fear here. So we've seen financial stocks really taking a hit. Even tech stocks which had been actually holding up pretty well during this downturn took a little bit of a hit yesterday as well.
So now the Dow standing at 7465, off one percent yesterday, but here's the deal. It's off about 47 percent from its all-time high, which we hit back in October of 2007. John is shaking his head, I know. It's a scary number, though, that I'm talking about now. The Dow is also off six of the last eight sessions just to give you an idea of how rough this is. This puts us at the lowest level from the last bear market so that's why people are also concerned about this as well.
ROBERTS: As Kiran was saying, you know, on our last hour, so many people's retirements have been hit so hard now. Down, what -- 40 percent in a lot of cases?
CHETRY: Yes, a lot of people say that...
(CROSSTALK)
ELAM: Yes, 35 percent to 40 percent, a lot of people.
CHETRY: And, you know, we were told just invest. You know? Take out the max of your 401(k).
ELAM: Well, in general, though, the thing is in general over the long term, if you invest in a 401(k), it will grow money. I mean, this is a weird aberration that we're seeing here. We have not seen anything like this in any of our lifetimes. Keep that in mind. So over time, yes, for most people it will do fine. It's not a bad investment vehicle. You just have to be wise about going back and check in where you're investing.
CHETRY: And the other thing, too, is -- I mean, for you and I and John who still has, you know, we still have 40 more years to work under our belts.
ELAM: There you go, right there.
CHETRY: You know.
ELAM: You almost made him gag!
ROBERTS: Are going to be working for 40 more years whether we have it under our belts or not!
CHETRY: Right. Well, I'm just saying for people like my in-laws who were going to retire and now they're back looking for a job, you know.
ELAM: Yes, it's a rough situation.
CHETRY: Yes.
ROBERTS: Thanks, Steph.
ELAM: Sure. I wore green. I'm trying to help.
CHETRY: Yes, he's awesome.
ROBERTS: Appreciate it.
CHETRY: Well, this morning, an apology of sorts coming from the "New York Post," over a cartoon spark outrage among many. The paper claims that the cartoon is just a parody of Washington politics that plays off of the much publicized chimpanzee attack. Others see it as a clear racist portrayal of President Obama. And for that, the paper is saying it's sorry. So why are some not taking the apology seriously.
CNN's Jason Carroll is following this for us this morning.
Hey, Jason.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Well, (INAUDIBLE) are not taking it seriously because he thinks for one it's insincere. The Post maintains the cartoon is simply a cartoon and the papers critics are merely using it as an opportunity for partisan payback. Even so, the Post did issue an apology.
It says, "It was meant to mock an ineptly written federal stimulus bill. But it has been taken as something else -- as a depiction of President Obama, as a thinly veiled expression of racism. This most certainly was not its intent. To those who were offended by the image, we apologize."
(END VIDEO CLIP)
CARROLL: The image offended a lot of people out there. The cartoon showed police shooting a chimpanzee with the caption "They'll have to find someone else to write the next stimulus bill."
The drawing was a reference to a real life incident in Connecticut where police shot and killed a chimpanzee who mauled a woman. Protesters picketed in front of the tabloid's office yesterday, not satisfied with "The Post" original explanation about the cartoon.
The paper initially said the cartoon, quote, "Broadly mocked Washington" and it was not directed at President Obama. Reverend Al Sharpton, among many, not buying it.
(BEGIN VIDEO CLIP)
REV. AL SHARPTON, CIVIL RIGHTS ACTIVIST: This is a very serious affront. This is race-based. This is offensive, to act as though the president of the United States, who is synonymous and personifies that bill, is the equivalent of a shot chimpanzee or monkey, speaks to all of the racial stereotypes and offenses that we've had to deal with this day.
(END VIDEO CLIP)
CARROLL: Grammy-award winning musician John Legend echoed Sharpton's comments calling the cartoon reprehensible. Legend is boycotting the paper. And in an open letter to the paper he's asking his colleagues in the entertainment world to do the same saying, quote, "We don't need the New York Post to resurrect the images of Jim Crowe to derive the new administration and put black folks in our plates. Please feel free to criticize and honestly evaluate our new president, but do so without the incendiary images and rhetoric."
It's unclear if "The Post" apology will be enough to satisfy critics, many of whom are calling for the cartoonist Sean Delonas to be fired.
Obviously, it touched a raw nerve with a lot of people sensitive to a very, very touchy issue.
CHETRY: Yes. And the cartoonist is standing by his depiction and he says that the whole controversy is ridiculous.
CARROLL: Yes. As John said earlier, freaking ridiculous.
ROBERTS: Freaking ridiculous as they say. Well, not ridiculous to some people, though. Thanks, Jason.
CARROLL: Thanks.
ROBERTS: Modern day money swindlers. First, it was Bernie Madoff, now Allan Stanford is accused. How to avoid an investment scam. We'll tell you what to look out for.
And could your cell phone be fueling a war. How to find out? And how to see how a bad is trying to stop the violence.
It's 12 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: It's 14 minutes past the hour.
Time to fast forward to the stories you'll see on CNN and cnn.com this morning. At the White House, President Obama will be meeting with dozens of mayors from across the country. They are expected to discuss the best ways to implement the $787 billion economic stimulus package. Vice President Joe Biden and other key members of the Obama administration are also expected to attend that meeting.
Well, after a week of wrangling between state lawmakers, California Government Arnold Schwarzenegger is expected to sign a state budget later today that aims to close the state's $42 billion deficit. The plan has almost $13 billion in tax hikes and more than $15 billion in budget cuts.
Also, hundreds of investors who lost money in Bernard Madoff's alleged $50 billion Ponzi scheme will pack a federal bankruptcy court in New York. They're hoping to find out when they might recoup any of their lost fortune. Right now, Bernard Madoff remains under house arrest in his Park Avenue apartment - John.
ROBERTS: After a huge manhunt, the FBI finally picked up Texas billionaire banker Robert Allan Stanford in Virginia. His passport was seized, then he was served with papers tagging him to $9 billion in fraud. The SEC is accusing Stanford of lowering investors in with a promise of impossible profits.
Millions lined up earlier this week outside failed banks linked to the scandal only to find their accounts were frozen. So first, it was Bernie Madoff and now Stanford. It all begs the question who can you trust with your nest egg?
Our personal finance editor Gerri Willis is here with us this morning to show you how to avoid being scammed.
Good news. You could use these things, my goodness.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I know. It seems like every day, there's a new name in the news. Yes. It doesn't matter who you are, you could get scammed here. And I just want to tell you how many folks complained last year about their broker to regulators, 5,400 people. Some 360 brokers were kicked out of the industry.
So what can do you? Well, listen to what this expert has to say about how you need to think about this.
(BEGIN VIDEO CLIP) STEVE WISEMAN: You've got to do your homework. You've got to understand the kinds of things that can go on. You've got to understand what you're investing in.
(END VIDEO CLIP)
WILLIS: All right. Well, that was Steve Wiseman, the author of "The Truth About Avoiding Scams." There are a lot of red flags here you need to watch for. If you think that maybe your broker, your investment adviser is doing something they shouldn't. First off, be suspicious of any claims about returns.
Even there are always going to be positive. Our investments are safe. Simple things like that that seemed logical, those aren't the kinds of claims they should be making. You also need independent oversight. You know, the custodian that looks over your money, your money should not be handled directly by the broker himself. It should be segregated. That money should be held separately.
Finally, no online access. If you can't get that, you're in big trouble. That's what happened in this last case. People couldn't get access to their money. That is one great big red flag out there.
ROBERTS: So what to do if you get scammed? Is there any recourse?
WILLIS: There are lots of places to turn to but for the most part these are regulators who are mopping up after the fact, the Securities and Exchange Commission, your state attorney general. These are all places to go. Finra.org is really the regulator here in this case for brokers in particular. And you can make complaints, but I got to tell you, John, you don't want to go there. You want to understand what's going on before you get there. One way to do that, go to finra.org. You can see what your broker's disciplinary hearing background is, if they got in trouble with regulators before.
ROBERTS: Tell you, though, you know, it all seems very logical but a lot of smart people got scammed by Madoff and apparently Stanford as well, because they were flying to Antigua on their private jets to try to get their money out. So these weren't just my mom and pop throwing a few bucks here and there.
WILLIS: That's absolutely right. We'll have more on this on my show "YOUR BOTTOM LINE" Saturday morning at 9:30 right here on CNN.
ROBERTS: CNN, that's who we work for. All right. Thanks, Gerri.
WILLIS: Did I really say that?
ROBERTS: You're good.
And starting next week, we are asking you for your financial survival tips, and every Thursday, Gerri is going to bring you the best of the best here on AMERICAN MORNING. And if she reads your tip on the air here on CNN, you'll get an AMERICAN MORNING bathrobe! I didn't even know we had them! And one lucky winner is going to get the chance to win a trip for two to New York City to meet the A.M. grew! We have AMERICAN MORNING bathrobes? They always keep this stuff from me.
WILLIS: CNN -- I want to wear it on air now that I was not able to get CNN out, OK?
ROBERTS: It will have the little CNN ears, so if you ever forget, you just have to look here.
WILLIS: There we go. There we go. All right.
ROBERTS: Gerri, thanks so much. Good tips -- Kiran?
CHETRY: You missed the best part. If they read your question on air, John will model the bathrobe for you on your visit here to AMERICAN MORNING.
ROBERTS: Yes, well, I don't know about that.
CHETRY: We'll have to see.
ROBERTS: We want to give them a pleasurable visit here!
CHETRY: Exactly.
Thanks, guys.
Still ahead, we're going to take a quick break. When we come back, could there be more trouble for R&B star Chris Brown after a disturbing new photo surfaced as we are going to see what authorities are saying now.
And what you may not know about your cell phone. A popular rock band says that feuding over the electronic parts is contributing to a violent war and they want to do something about it. It's 19 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Well, maybe sounds crazy, but could your cell phone actually be funding a war? Certain brands may be.
Our Zain Verjee shows us what one popular rock band is doing about it.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): Rock band Good Charlotte want to make things right. Joel and Benji Madden say that demand for minerals used in cell phones and electrical goods is fueling war in Congo. Colton, for example, used in circuit boards and cobalt used in cell phones.
BENJI MADDEN, GOOD CHARLOTTE: These, you know, conflict minerals is what is funding the entire thing. JOEL MADDEN, GOOD CHARLOTTE: The effect of this conflict is women being raped, children being hurt, people dying, you know? The deadliest world, like I said, since World War II.
VERJEE: The army and militias fighting in Eastern Congo funded by mineral wealth. Much of it ultimately destined for electronics manufacturers.
JOHN PRENDERGAST, ENOUGH PROJECT CO-CHAIR: They're all using this stuff because it's so cheap. You can imagine they are using slave labor. So they turn a blind eye and just, you know, keep buying it until we turn the spotlight on it and say, hey, these are the practices that are actually killing people.
VERJEE: Millions have been killed in Congo. The United Nations estimates more than 200,000 women raped. The movie "Blood Diamonds" raised awareness about the international gem trade.
LEONARDO DE CAPRIO, ACTOR: You know, in America, it's bling, bling, but out here, it's bling, bang, huh.
VERJEE: And speeded up acceptance of diamond certified conflict free. But tracing these mineral supply routes is stuff and supplies from the legitimate sources can be mixed in with those from conflict zones. So it's hard to know if your electronic device is conflict- free. Activists say call up manufacturers and ask.
PRENDERGAST: Do you know where the minerals that are coming from that you're putting into your computer? Tell those companies they don't want to purchase their stuff if they're going to continue to fuel conflict in the Congo.
VERJEE: Meanwhile, the Madden twins are working on lyrics for a future song about the crisis in Central Africa.
What is the opening line?
MADDEN: Take me back, take me back to Africa.
ZARRELLA: Zain Verjee, CNN, Washington.
(END VIDEOTAPE)
CHETRY: Zain, thank you. Well, taking a giant step toward possibly building a nuclear weapon. Scary news this morning from Iran on how close it really is to getting the bomb. And what that means for the Obama administration and its list of priorities. Our Christiane Amanpour will be joining us with more on this.
Also, First Lady Michelle Obama getting to know Washington. We're going to find out where she's heading today and hear what she is saying as she makes the rounds. It's 24 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE) ROY FOSTER, COMMUNITY CRUSADER: I actually joined the army right out of high school. I became introduced to alcohol once I was out. It was just simply drinking and drugging. And I would then in the streets. I was looking for a safe haven. The places that I were introduced to were no better than on the street. It was humiliating. That's when the commitment in my heart was born.
How can I turn my back and walk away and leave you right here? I can't! Nationwide, veterans are neglected, homeless, unacceptable. What branch of service?
UNIDENTIFIED MALE: Army.
FOSTER: Army. So was I. We are brothers in arms, so no man left behind. My name is Roy Foster and my mission is to help and empower homeless veterans. If you're going work for sobriety, you got to change. Staying on house provides services for veterans only, a safe, clean place to live, all of the meals, and to have services. The camaraderie, it is that internal glue.
UNIDENTIFIED MALE: When I got back from Iraq, it was difficult for me until I met Mr. Foster. He helped me.
FOSTER: Until one of his brothers in arms came out looking for him, and let him know, yeah, we will be back.
They are the best and they deserve the best. What I do, I love. I love it.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: 28 minutes after the hour.
Breaking news we're following for you today. The country of Kyrgyzstan says the U.S. has six months to leave an air base on its soil. It could prove to be a major blow for the U.S. military mission in Afghanistan. It is the only U.S. military central base in central Asia and it's a major re-supply hub for the war in Afghanistan. The U.S. says that it is still working with the country to keep that operation open.
Secretary of State Hillary Clinton arriving in Beijing just moments ago. Before leaving she spoke to CNN and offered a blunt message to North Korea. Warning Pyongyang if tough talk is an attempt to tear apart U.S.-South Korean relations, think again.
(BEGIN VIDEO CLIP)
CLINTON: Now if North Korea is calculating that somehow they're going to drive a wedge between the United States and the Republic of Korea, they are badly miscalculating. Our alliance is, you know, stronger than ever and it's not only about our mutual security, but it's also about how we're going to deal with the global economy and so much else. So I think that there's a testing period and a kind of, you know, wait and see attitude about how this is going to move forward. And we're hoping that North Korea will see its way clear to reengage and, as I've said repeatedly, if we can get to the point where denuclearization is verifiable and complete, there are tremendous advantages waiting for North Korea, not only a bilaterally normal relationship with the United States, but I think a lot of international support and aid that could come to the people of North Korea.
(END VIDEO CLIP)
CHETRY: And again, that was Secretary of State Hillary Clinton talking to our Jill Dougherty - John.
ROBERTS: More breaking news this morning, Kiran. Word of a nuclear breakthrough in Iran something that could be a major wake-up call for the U.S. and its allies. Scientists now say Iran has reached, "nuclear breakout capability." That mean that they have enough enriched uranium to build a single atomic bomb.
Chief international correspondent Christiane Amanpour joins us now.
So what do you make of this. The IAEA said it had underestimated the amount of enriched uranium that Iran had about by about a third.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, that is what the press reports are saying. I just spoke with the IAEA. And they're saying put several things, factually out now.
Basically what Iran has they're saying, because they measured it, their technicians are there at the nuclear facilities, is a certain amount of low enriched uranium. They're saying that in order to convert it to bomb capability, you have to be highly enriched uranium, which, they say, Iran does not have the capability right now.
It would have to significantly modify its enrichment capability, its technical capability there in order to be able to do it. So they're saying, yes, they have that amount of low enriched uranium, but we have no evidence that it's being used for anything other than what they say it's being used for which is eventually what they say their peaceful program.
Then they also say, when asked about this underestimating the amount of low enriched uranium, They say the IAEA, that they base their original estimate in November on what the Iranians told them they had, but this stuff was all, "in the plumbing." It was all being worked through the system of the enrichment process and when it had come through, then there was more, so that's what they're saying. It's not that they don't feel that they were sort of deliberately underestimating it, that this was according to what they had expected.
ROBERTS: So just to be totally here, low enriched uranium has enough juice, if you will, to run a nuclear reactor for power generation capabilities but not enough to create a nuclear bomb? AMANPOUR: Correct, in order to have a nuclear weapon you have to have highly enriched uranium and that takes a much more sophisticated step-up in terms of technical capability. And what they're saying is we have our experts, we have our technicians, the monitors are there, the cameras are there and this won't happen without us knowing about it.
ROBERTS: Let's switch to North Korea. You know, of course, Hillary Clinton talking just a couple of moments ago about North Korea. You know the saber rattling that's been coming from the north toward the south. What is going on over there? Why are they rattling the sabres? Why are they rattling the cages so hard?
AMANPOUR: Well, if you go back a few months, noticed that the sabres started rattling frankly from South Korea. With the election of the new much more hardlined president before the summer. That really put North Korea on edge. Followed by the illness of Kim Jong- Il, to which - about which we still know quite little. It's an opaque system to say the very least, but what was happening, beginning this time last year, was a systematic move towards denuclearization.
If you remember, I went with a team to witness that at Pyongyang's Yongbyon nuclear plant. We saw it being closed down. In June, we went and we saw them blow up their cooling tower. All part of negotiations between the United States and the six parties. Then the U.S. took them off the terrorist list and things sort of have gone south ever since.
A lot of the saber rattling came from the new South Korean president who was very hard lined toward North Korea and then nobody quite knows whether there is a struggle for leadership or succession.
ROBERTS: Yes, what about that because the Secretary of State was saying when she arrived in South Korea that the administration is worried about a crisis of succession there. Does it sound like Kim Jong-Il is about to bow out?
AMANPOUR: You know, it depends on who you talk to. There are some people who think they know exactly what's going on, but most people say they don't really know. People suspect that there will be some kind of succession battle. They don't know exactly how ill he was. They know that he was out of commission for a while. There is a picture that profess to show him back in the job but who really knows.
ROBERTS: But it's a still photograph, not a video.
AMANPUOT: And there is at least one article, one article in the press out there that says that he's anointed his youngest son, but we really don't know. We really don't know at this precise moment. The objective facts that we knew was that the Yongbyon had been closed down, the cooling tower had been blown up.
The system had stopped working and, you know, it's - it sort of started to fray at the edges, that move towards denuclearization and many are saying that it points out both Iran and North Korea, the urgency of the new U.S. administration to start again engaging, to get these things out in the open. Because you can't have guesswork on such serious things.
ROBERTS: Yes, you are going to have more transparency. Good to talk to you this morning, Christiane. Thanks for coming in.
AMANPOUR: Thank you.
ROBERTS: Kiran.
CHETRY: Well, Congress has scolded banks CEOs receiving government handouts for flying private jets, for handing out big bonuses but are lawmakers practicing what they preach? Wait until you hear what House Speaker Nancy Pelosi and several other democrats did on a trip to Italy. Our special investigations unit is on the case.
Also could R&B star Chris Brown be in more trouble with police? Why a new photo may mean new charges.
It's 35 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: 38 minutes after the hour.
And just in to CNN. New details on the state of the economy. Stephanie Elam joins us now.
We've been getting new information each day, right around this time. What have you got for us today?
ELAM: Right. Today, we're taking a look at consumer price index. It's a benchmark of key inflation numbers as far as what the consume is spending. We got the numbers in. The numbers are up. The CPI coming in, up 0.3 percent. Consumer prince index showing that we are paying a little bit more but this is in line with what analysts are expecting. The core CPI, that's a number that takes away volatile food and energy prices. We know those can jump around, up 0.2 percent.
Now this one puts an end to the three-month run that we've had of declines here. So this is the question here. A lot of people wondering what about deflation? Are prices just dropping too low? We have a one-month low and we don't know if we can say it's actually the end here but at this point, it doesn't look like people are too worried about that. But we got to find out if this is just a one- month aberration or not, this is a trend. So we'll be looking to this.
ROBERTS: All of this unchartered territory so how do you know where these measures are going?
ELAM: I say this all the time but economics, a lot of it is breaking out your rearview mirror and after you've gone through it, turning around to see what has happened. So right now we have gotten an up tick here for January. ROBERTS: All right. Thanks so much, Stephanie.
CHETRY: Isn't that a lot of life as well? All right. Breaking out the rearview mirror.
ROBERTS: Yes.
The Grammy night drama goes on. Rihanna's boyfriend may be in deeper trouble than he thought. A new photo surfaces and new charges may be next.
It's coming up on 40 minutes after the hour.
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CHETRY: All right. We are following developing news this morning as well when it comes to singer Chris Brown, as well as Rihanna. A Los Angeles police have now launched an internal investigation to determine who leaked a picture that appears to show a bruise and battered Rihanna. It's a close-up photo that CNN has decided not to air right now, showing a woman with contusions on her forehead as well as below her eyes and cuts on her lip. It was published on the entertainment website TMZ overnight. TMZ saying it is a photo of Rihanna.
Joining us with more on this is former New York City prosecutor Paul Callan. Paul, great to talk to you this morning.
PAUL CALLAN, FMR. NEW YORK CITY PROSECUTOR: Nice to be on with you, Kiran.
CHETRY: Again, CNN making the decision to not air this photo right now, but it is out there. It's out there on the front page of some of the papers today as well. Even if the victim here does not go ahead and cooperate with police, do they have more of the case? Do they have a case to go forward?
CALLAN: Yes, you know, I think they do have a case and I've had an opportunity to look at the picture and I know there's some question about its reliability. It's being investigated by the police right now. But certainly if that is her picture, she's been damaged. There are contusions, there are cuts. This could be a felony assault and it could be a quite serious charge.
Now, the prosecutor has the right to proceed with this charge also, Kiran even if she wants to drop. This happens very frequently in domestic abuse cases and particularly when there's photographic evidence backing up the existence of an injury.
CHETRY: So that's the interesting part here, because if going forward, she does not choose to cooperate with police and there are only two people there, the alleged victim and the alleged assaulter, how do you go forward with a case to prove it?
CALLAN: It's a tough situation for a prosecutor, but they face this everyday, particularly in domestic abuse cases. Anybody who has been a prosecutor knows a woman comes in, she's been beaten, she presses charges and then she gets cold feet a couple of weeks later when the boyfriend or the husband comes back and apologize. But prosecutors across the country now are being much tougher in these cases and they are refusing to drop the charges, forcing the victim to testify.
So they can proceed with the cases, but I have to tell you, it's difficult to get a conviction in front of a judge or a jury when have you a reluctant victim, but I think here, we really don't know at this point how reluctant or nonreluctant she is. She may decide to press charges. Who knows.
CHETRY: There also is another element to this which is the Los Angeles Police Department is now launching an internal investigation because they say of this leaked photograph in association with Chris Brown. If it was leaked, does this help or hurt Chris Brown's case if it, indeed, goes forward?
CALLAN: I think it helps his case in the sense that his defense attorneys are going to come in and ask the judge to sanction the prosecutor for allowing leaked photographs to occur and prejudicing is case but I think there is a bigger question here. If this in fact is her photograph and it's been leaked to the press, this is going to discourage domestic abuse victims from coming forward if they think, my god, police photos of me are going to be leaked and they are going to be all over the press.
It's an invasion of her privacy and it's a violation of Chris Brown's constitutional rights. So it's really a double whammy in terms of legal violation.
CHETRY: And of course, there's so much more involved here than I guess your typical domestic violence situation here. You have two young up and coming stars. Of course, the public interest is much greater because they are such well-known celebrities and also the implications of both of their careers, I mean, if this does go forward. I mean, Wrigley's gum apparently pulling the commercial, a couple other organizations pulling commercials that Chris Brown appeared in. And also the questions for her moving forward. I mean, does she want, you know, the stigma moving forward as a one-time victim of abuse if this indeed turns out to be proven.
CALLAN: Yes. that's right. That marks her career that she will just be remembered for this, rather than her own talents. And you know, there is even another interesting angle to the story, Kiran. And that is Chris Brown has said in public interviews that he was, in fact, a victim himself of domestic abuse. So this is a complex story with implications for everybody's careers. It's a sad story all around.
CHETRY: It sure is. Very, very tragic, no doubt. Paul Callan, former NYC prosecutor and professor at Seton Hall University, thanks for joining us this morning.
CALLAN: Thank you, Kiran.
CHETRY: Take a quick break.
It's 47 minutes after the hour.
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CHETRY (voice-over): First Speaker Nancy Pelosi seemed to feel America's pain.
NANCY PELOSI, HOUSE SPEAKER: The American people are feeling a great deal of pain.
CHETRY: Then she joined a big delegation of democrats and flew off to Italy on an executive jet with her husband and wait till you hear what a trip like this costs. At a time like this, it is appropriate?
What CNN special investigations unit uncovered ahead on the Most News in the Morning.
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MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: As you probably heard, I've been running around the district visiting departments and, as I said, it's been one of the most fun things that I've done. My purpose is simple. It's to say thank you.
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ROBERTS: Welcome back to the Most News in the Morning.
The First Lady still thanking hard-working government employees in the different departments across Washington. Her tour continues this afternoon. Michelle Obama will visit with folks at the Department of Transportation today.
Meanwhile, just days after helping President Obama pass a $787 billion economic stimulus package, House Speaker Nancy Pelosi and several other democrats headed to Italy on your dime. Special investigations unit correspondent Drew Griffin is looking at this pricey overseas trip and it's got a lot of critics saying, Drew, that she is over there in Italy living the dolce vita and why is she doing it?
DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: Exactly, John. Remember all the hoopla about those auto executives flying their jets? Well, after so much congressional criticism of executive travel and what members of Congress were calling junkets by Wall Street bankers, some are asking if Congress is engaging in a "do as I say, not as I do" attitude when it comes to taxpayer funded travel.
(BEGIN VIDEOTAPE) GRIFFIN (voice-over): Shortly after passing the Reinvestment and Recovery Act and shortly after making this statement about struggling Americans.
PELOSI: The American people are feeling a great deal of pain.
GRIFFIN: Speaker Nancy Pelosi and seven fellow democrats in the House boarded a military charter like this government-owned Boeing 737 executive jet and flew off to Italy. Why, in a time of economic crisis, would the speaker, who happens to be of Italian heritage, travel to Italy?
The United States has no greater ally in NATO than Italy, the Speaker said, in a statement, which is why the delegation looks forward to meeting with President Giorgio Napolitano and other Italian government officials. She also has been going to museums in Florence, receptions at night and was even presented with the birth certificates of her grandparents by the head of the Italian chamber of deputies.
PELOSI: Surprised me with the birth certificate of my grandfather and my great grandmother.
GRIFFIN: Wednesday, Speaker Pelosi, a Roman Catholic, and her husband, Paul, also on the trip, had a private audience with the Pope. Her office would not release the entire Italian itinerary of the all- democratic delegation due to security reasons. So what's the cost of her Italian trip to the taxpayers back home? We won't know yet.
Congress gives its traveling members several weeks to file their expenses, to tell us what hotels they stayed at, to tell us who took their spouses or staff, but the government-owned Boeing executive jet doesn't fly cheap, about $10,000 an hour, according to the Air Force.
Twenty hours flying between Washington and Italy adds up to about $200,000. That is interesting news to the president of the U.S. Travel Association. For weeks now, Congress has chastised banks and bailout recipients for unnecessary trips and conferences, and Roger Dow says that has hurt the travel industry.
ROGER DOW, U.S. TRAVEL ASSOCIATION: By demonizing or by sensationalizing travel, all you're doing is you're not hurting the businessman, you're hurting the bellman, the maid, the town that counts on that travel for taxes.
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GRIFFIN: John, right now, there's a congressional delegation in Gaza, another in Brussels and Paris. We even caught a group of six House members on their way to India last Friday. They were marking the 50th anniversary of Rev. Martin Luther King Jr.'s journey to study Gandhi. On that trip, Martin Luther King III, Andrew Young, musician Herbie Hancock and others. Well the U.S. state department and Congress picking up the bill for that Indian trip.
You know Martin Luther King III along with his siblings sold his father's papers for $32 million two years ago. He was a guest at the State Department. John, the travel industry is saying, hey we're not criticizing you, Congress, for going on these business trips but maybe you can cut us some slack about our business trips.
ROBERTS: As you said, there was a lot of hoohooplapla about the...
GRIFFIN: Yes, whatever I said.
ROBERTS: The CEOs of the big three coming down there. So you know, you got to watch who you're throwing stones at.
Drew Griffin, it's good to see you. Thanks so much.
GRIFFIN: Thanks, John.
ROBERTS: Kiran.
CHETRY: All right. Thanks.
Critic of all critics. Just in time for Oscar night. You may not know him, but you soon will. He's AMERICAN MORNING's very own movie guru. There he is, Mr. Graham Flanagan. He is going to tell us who is going to win. He has seen every single movie ever made - well, practically. It's 55 minutes after the hour.
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HEATH LEDGER, THE JOKER, "THE DARK KNIGHT": Please. Now I see the funny side. Now I'm always smiling! A little fight in you! I like that.
And you're going to love me.
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CHETRY: Well, that is Heath Ledger up for best supporting actor for playing the Joker in "The Dark Knight." And with just two days until the Oscars, it seems like every critic is offering up their two cents about who they think is going to win.
Well forget the critics, one of AMERICAN MORNING's underpaid, overworked and overqualified movie buff Graham Flanagan. Now Graham, in full disclosure, you are a movie buff extraordinaire. You have seen many, many - you know, I mean, we could pick the most obscure movie and, boom, you know who is in it and who directed it and so that is why we're using your talents today. So let's talk about the late Heath Ledger. He seems to be everybody's pick up for best supporting actor. What do you think?
GRAHAM FLANAGAN, MOVIE EXPERT: I would say he's a lock to win. A lot of people say kind of unnecessarily that he's only going to win because he, unfortunately, passed away last year but I think if he were alive he would still be the lock to win. I just think that it will be a nice tribute to his legacy and to probably the greatest performance he ever gave.
CHETRY: He was, by the way. And he did get rave reviews all the way around and then, unfortunately, as we know, he passed away way too young. I want to ask you about best actress. Because a lot of these nominees, we've seen them. I mean, these are familiar faces for the acting world.
FLANAGAN: Sure. I think that who should win in this category is Meryl Streep in "Doubt." You know, she's been nominated 15 times. If you can believe that. But she's only won twice and the last time she won was in 1982. So she is due for a win. And she deserves to win for this movie. It's some of the best work she's ever done in her career and that is saying a lot.
But I think who will win is Kate Winslet for "The Reader." Because she seems to have a lot of the momentum heading in, she's won a lot of the precursor awards. It's her sixth nomination. I think it's Harvey Weinstein's special dream for her to bring it home and his dreams usually come true so I think Kate Winslet is going to walk away with it.
CHETRY: It's very interesting. So she also started another movie that got waive reviews "The Revolutionary Road." But "The Reader" is the one where she is up for best actress. All right. Let's move on to best actor and this was a tough category this year. A lot of great performances.
FLANAGAN: Yes. I think that Sean Penn in "Milk" definitely deserves to win. The guy only has one Oscar. He should have about three at this point. Again, he gives some of the best work in his career. I think he should take it home. But it looks like Mickey Rourke, the comeback kid of 2008 is going to bring it home for "The Wrestler." I'm going to go with that as my official prediction that he is going to win.
CHETRY: The sentimental favorite there. OK. Finally, best picture.
FLANAGAN: Best picture, I think it should be "Milk." Oscars like to give the awards to topical movies that done that in the past, movies like "Gandhi" and "Crash." Well, this movie, it is topical with everything with the controversy, the gay marriage issue in the last year but it's a great film.
But I think that there's no way around it. "Slumdog Millionaire" is going to win this award. It's the critics' favorite. It's the audience's favorite, and if it does not take home the statue it's going to be a major upset.
CHETRY: All right, Graham Flanagan. By the way, your personal pick for best picture is "Cassandra's Dream." So if you like it, I'm going to go see it. But great job today and thanks so much for joining us on this AMERICAN MORNING.
FLANAGAN: My pleasure. Thank you.
ROBERTS: Good to see you, Graham. I got "Slumdog" over here for best picture.
That's going to do it for us. We'll see you bright and early again on Monday morning. Thanks for joining us.
