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American Morning
Israel Ready to Talk Peace; Making Money off Mug Shots; Journey to Cuba
Aired May 05, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Welcome. Thanks so much for being with us on this AMERICAN MORNING. It's Tuesday, May 5th. I'm Kiran Chetry.
JOHN ROBERTS, CNN ANCHOR: And I'm John Roberts. Good morning to you. Feliz Cinco de Mayo today.
CHETRY: That's right. Or Cinco de Quatro, Quatro de Cinco.
ROBERTS: If you're the president, you and I can say it that way.
A lot to cover this morning. Here are the big stories we'll be breaking down for you in the next 15 minutes here on the Most News in the Morning.
Markets now on a roll overseas. The major index is picking up where Wall Street left off. The Dow soaring more than 200 points as new numbers show some signs of life in the economy. But what will Fed Chairman Ben Bernanke say when he heads to the Hill this morning?
President Obama hosts Israeli President Shimon Peres this afternoon at the White House. The administration now stepping up efforts to move the stubborn Middle East peace process forward. We're live at the White House with a preview today.
And the sex scandal that brought John Edwards down may be just the start of his legal troubles. The former presidential candidate now the target of a federal investigation into whether his campaign might have improperly paid money to his mistress. Hear what Edwards and his wife Elizabeth are saying about it.
CHETRY: But the big story this morning, right now, overseas markets riding the wave of Wall Street's rally. Green arrows from Europe to Asia and all of it comes as Wall Street gets ready to start the day back up over 8400.
The Dow picking up another 216 points yesterday. The S&P 500 now in positive territory for the year. The stocks surge coming after positive news on home sales as well as construction spending considered by many to be the underpinnings of our economy.
And today, traders will be closely watching Washington where Fed Chair Ben Bernanke will testify before Congress on the state of our nation's economy. CNN's Christine Romans joins us now.
What do we expect him to say? I mean, is he going to say that the recession is over?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: He can't say the recession is over because it's not. The economy is stabilizing right now. What he'll likely say when he thinks the recovery will begin and that's what we're talking about here, folks.
We're talking about a stabilization in the economy. We're talking about the stock market thinks the economy is not getting worse anymore and can actually look ahead and see when things are going to get better.
Lakshman Achuthan from the Economic Cycle Research Institute told us this weekend that he sees the recovery beginning, the recession ending at the end of the summer. Other economists and Fed officials are saying they can see maybe later this year, the beginning of next year.
So the stock market and investors are looking beyond what is still bad news in the economy and frankly are looking to a better day down the road. They think that the little green shoots as we keep saying are there for the economy.
Look at this -- this S&P 500 is up 34 percent from the March lows. It is back in the black for the year. I can't believe I'm saying it.
Pending home sales, the number yesterday showed a gain of 3.2 percent. So you're seeing these little beginnings of strength, even from very below levels, folks. A lot of these economic data are still showing at least the free fall is over.
We have a couple of big things to get through -- the stress test from the banks. This is going to be crucial this week, and also a jobs report on Friday.
I want to be very clear about something. The stock market is a leading indicator. That means the stock market is looking way ahead. And we talk about this a lot, but it forecasts really far out. So the stock market is telling us things are going to get better. The worst is behind us, and we can see the light at the end of the tunnel and it's not a train.
What the lagging indicator is, is the job market. Even the economists who are looking for a recovery beginning later this year, they say we could lose another million jobs at least. So your personal economy and what you're seeing in the stock market might be two different things but one eventually follows the other. So the jobs market will eventually follow the stock market or the economy, I should say. It's just going to take a lot longer.
CHETRY: All right. Christine, thanks.
ROMANS: Great.
ROBERTS: Well, the economy rings issue number one for the president but Middle East peace will be front and center at the White House today when President Obama meets with Israeli President Shimon Peres.
The administration is pressing for a two-state solution between Israel and the Palestinians, but the threat from Iran is the top concern for the Israelis. Our Suzanne Malveaux is live at the White House for us this morning.
And, Suzanne, the administration seeing a window of opportunity here to push the process forward.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: John, it certainly is. There's a window of opportunity, very unique time. A new Israeli leadership and really this White House is going where so many administrations have failed before. It's one of the reasons you see it really engaging early on to at least try to give it some sort of chance to succeed.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): For President Barack Obama and Israeli President Shimon Peres, it's a first step.
SHIMON PERES, PRESIDENT OF ISRAEL: Let me make it clear, we trust the leadership of President Obama.
MALVEAUX: The two presidents top priority, peace in the Middle East starting with the Israelis and Palestinians.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I am a strong supporter of a two-state solution.
PERES: I have a simple question. Why wait? Israeli is prepared today to bring peace closer. Today.
MALVEAUX: But even the Israeli leadership is split over whether that's even possible. Israel's newly elected prime minister, Benjamin Netanyahu, has not endorsed the two-state solution. Mr. Obama would like that to change.
OBAMA: My hope would be that over the next several months that you start seeing gestures of good faith on all sides.
MALVEAUX: Already, some Arab states are encouraged by Mr. Obama's early outreach to the Muslim Arab world.
KING ABDULLAH II, JORDAN: That has gone down extremely well, and really begins, I believe, a new page of mutual respect and mutual understanding between cultures.
MALVEAUX: But Iran continues to threaten the region with its nuclear ambitions. The U.S. and Israel believe the regime is intent on developing nuclear weapons.
PERES: Iran is not threatened by anybody.
MALVEAUX: But President Obama believes opening a dialogue with Iran's regime could change its behavior. OBAMA: Tough, direct diplomacy has to be pursued without taking a whole host of other options off of the table.
MALVEAUX: Former Republican House Speaker Newt Gingrich slammed the president's approach telling the "Jerusalem Post" it was a fantasy, part of a policy very dangerous for Israel.
But Peres told CNN's Wolf Blitzer he didn't have a problem with Mr. Obama reaching out to talk to Iran's leader.
PERES: Look, if they'll be successful, God bless them. Who wants a war? We're not crazy.
(END VIDEOTAPE)
MALVEAUX: Shimon Peres, obviously, a very well-respected statesman, but it really is a ceremonial post. It is the newly- elected prime minister, Benjamin Netanyahu, who really has the power. He's going to be meeting with President Obama in the weeks to come. And as I had mentioned, he is not advocating this two-state solution at this time.
So you can see, John, where the trouble begins here. This is a six-decade-old conflict and already a lot of space between the sides here -- John.
ROBERTS: Yes. As you said, this meeting today very much more ceremonial. The real nuts and bolts might happen later on. We'll see just how far they can go.
Suzanne Malveaux for us this morning. Suzanne, thanks so much for that.
This morning, new numbers on the swine flu and more possible signs of hope. The Centers for Disease Control confirms nearly 280 cases in 36 states. Across the globe, the H1N1 virus is still jumping from person to person. The number of confirmed cases has risen to 1,080 in 21 countries.
In China, where SARS infected thousands just six years ago, the response has been swift. The U.S. embassy says dozens of people have been quarantined, including four Americans. And Homeland Security Secretary Janet Napolitano is cautiously optimistic about all of this suggesting the worldwide cases are no stronger than the seasonal flu.
(BEGIN VIDEO CLIP)
JANET NAPOLITANO, U.S. SECRETARY OF HOMELAND SECURITY: As the Centers for Disease Control and Prevention noted over the weekend, we have started to see encouraging signs that this virus may be mild and that its spread may be limited. We are therefore cautiously optimistic, but nevertheless, we realize that this is not the time to rest.
(END VIDEO CLIP) ROBERTS: And this morning, the Food and Drug Administration cracking down on Web sites trying to cash in on the flu virus. The agency says it found 20 Web sites offering products that claim to guard against or cure the illness, so beware of what's out there this morning - Kiran.
CHETRY: All right. Seven minutes past the hours. New charges this morning against the suspected Craigslist killer.
Prosecutors in Rhode Island are charging 23-year-old medical student Philip Markoff with assault and attempted robbery just two days after police say he murdered a New York City masseuse.
CNN's Jason Carroll is following the story for us this morning. This case keeps getting a little bit more bizarre as well.
JASON CARROLL, CNN CORRESPONDENT: And bigger as well because, you know, law enforcement is not just going after the suspect, Philip Markoff. Officials also say it's time for Craigslist to do more to stop these kinds of attacks. They will be meeting with Craigslist representatives today asking them to get rid of advertisements for illegal sexual activity.
As for Markoff, in addition to murder charges, he now faces robbery charges in connection with an attack on an exotic dancer at a hotel in Rhode Island last month. The third victim he allegedly contacted on Craigslist.
(BEGIN VIDEO CLIP)
PATRICK C. LYNCH, ATTORNEY GENERAL, RHODE ISLAND: The arrest warrant is for four counts. Count one is assault with intent to rob. Count two, assault with a dangerous weapon. Count three, possession of a handgun. And count four is the use of a firearm while committing a crime of violence.
(END VIDEO CLIP)
CARROLL: Markoff has pled not guilty to all charges and is being held without bail in Boston, facing allegations he murdered a woman in a hotel there. Police say that's him. And this hotel surveillance tape, they found a gun, restraints, and duct tape at the 23-year-old's apartment.
Authorities say it could take months before Markoff appears again in a Rhode Island court. Officials say they wanted to reassure the public who may have thought a suspect was still at large.
(BEGIN VIDEO CLIP)
LYNCH: But I think today is that we can announce that it was not that. It was Philip Markoff. He will be brought to justice, but it may take time to bring him formally into a court of law in Rhode Island.
(END VIDEO CLIP) CARROLL: Well, attorneys general from Connecticut, Illinois and Missouri plan to begin negotiations with Craigslist today to eliminate what they say are advertisements for illegal sexual activities. This, according to the "AP." They also took aim at Craigslist's founder who said in an interview a short time ago to that murder was just one incident.
Last November after pressure from attorneys general in 40 states, Craigslist agreed to cooperate with authorities and donate to charity, money it makes from erotic advertising. Obviously, not enough for them at this point.
CHETRY: Right. And we had him on the show. When John spoke to him, he said, look, before when we didn't have an exotic site, these ads just were popping up everywhere.
CARROLL: Right.
CHETRY: So we wanted to find a way to clear them out of the everyday classifieds but they're probably going to make a very strong case with him that it's just...
CARROLL: I think they're going to make a very strong case that they've got to do more.
CHETRY: Right. Jason, thanks.
CARROLL: All right.
ROBERTS: Michelle Obama opening up about life in the White House. Hear what she had to say about her role as first lady and the one food that she just cannot get enough of.
A sex scandal killed his political career. Now, former presidential candidate John Edwards is under federal investigation, giving late night comedians something other than his hair to talk about.
(BEGIN VIDEO CLIP)
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": The number two movie in the country is the romantic comedy "The Ghosts of Girlfriends Past" as John Edwards calls it, a horror film.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. It's now 13 minutes after the hour, and time to fast forward through stories that we'll be watching on CNN today.
At 3:00 p.m. Eastern, the chief engineer of the Maersk Alabama testifies at a congressional hearing on piracy. That ship you recall was hijacked by Somali pirates who held Captain Richard Phillips hostage for days before Navy SEALs killed three of his captors in a rescue operation.
At 12:15 p.m. Eastern, Richard Holbrooke, the president's special representative to Afghanistan and Pakistan, goes before the House Foreign Affairs Committee. Congress is considering a plan for emergency aid to Pakistan to help stabilize the troubled nuclear ally after recent Taliban violence, actually ongoing Taliban violence in the Swat Valley in the Buner District.
And this morning at 8:30 Eastern, the nominees for the 63rd annual Tony Awards will be announced in New York City. The ceremony which honors the best of Broadway will take place on the 7th of June -- Kiran.
CHETRY: All right. John, thanks.
Well, a sex scandal effectively ended John Edwards' political career. Now federal investigators have the two-time presidential candidate and former senator in their cross hairs. They're looking into whether Edwards misused campaign funds by paying money to his former mistress.
As CNN's Brian Todd tells us, Edwards is insisting he's done nothing wrong.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): John Edwards and his family acknowledge he's the subject of a federal investigation. The probe believed to be looking into whether his presidential campaign might have improperly paid money to Rielle Hunter, the woman with whom Edwards admitted having an affair.
I spoke by phone with Edwards' wife, Elizabeth, who says, "There won't be anything that sticks on this."
John Edwards told ABC's "Nightline" last year he knew of no money doled out to cover up the affair.
JOHN EDWARDS (D), FORMER PRESIDENTIAL CANDIDATE: I never paid a dime of money to any of the people that are involved. I never asked anybody to pay a dime of money, never been told that any money's been paid.
TODD: In a statement, John Edwards says he's cooperating with the government and, "I am confident that no funds from my campaign were used improperly.
Election records show Rielle Hunter was paid $114,000 by Edwards' political action committee to produce Web videos.
(BEGIN VIDEO CLIP)
RIELLE HUNTER, JOHN EDWARDS' MISTRESS: I'm so glad you like it.
EDWARDS: I like it.
(END VIDEO CLIP)
TODD: Fred Baron, an Edwards' supporter who died last year, reportedly paid tens of thousands of dollars for housing for Hunter and Andrew Young, who says he's the father of Hunter's child. Neither of those payments would be illegal, and Baron said last year Edwards didn't know about the money he gave.
Hunter is never mentioned by name in Elizabeth Edwards' new book due out Friday. But according to "The New York Daily News," Mrs. Edwards writes that Hunter's life is "pathetic." She also writes according to "The Daily News," that when John Edwards confessed the affair to her, "I cried and screamed. I went to the bathroom and threw up."
Mrs. Edwards hinted to us she believes this investigation of her husband's campaign money might be politically motivated.
(on camera): The "Raleigh News & Observer" reports that George Holding, a Republican U.S. attorney in North Carolina who's prosecuted several Democrats, is leading this probe. Contacted by CNN, an aide to Holding said he would not confirm or deny that he's investigating John Edwards.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
CHETRY: We're going to be talking more about the John Edwards investigation with CNN senior legal analyst Jeffrey Toobin coming up in about an hour right here on AMERICAN MORNING.
ROBERTS: First Lady Michelle Obama marking Cinco de Mayo a day early and revealing the most surprising thing about her move to the White House. Wait until you hear what it is.
And it's a slick video with a hip-hop vibe you'd expect to see on MTV, only this video was put out by al Qaeda. Intelligence experts warn that it could pose a threat here in America. We'll show you more of it coming up.
It's 17 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Nineteen minutes after the hour right now. Welcome back to the Most News in the Morning.
Today, Michelle Obama marks Cinco de Mayo here in New York. Yesterday, though, they had a celebration in Washington and the first lady who, like her husband, has been on the go since day one opened up a bit about her new role, and Alina Cho is here with more on what the first lady had to say.
Hey, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey, there. Some revealing thoughts, guys.
Good morning. Good morning, everybody.
You know, First Lady Michelle Obama has been asked about her style. She's been asked about Bo, the dog, even her children, Sasha and Malia. But it was a child's question that prompted her to reveal some of her true feelings about her new job as America's first lady.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: What surprises you mostly about the White House?
MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: See, this is a question. Serious. What has surprised me most?
I think -- you know, I didn't know that I would have this much fun doing what I'm doing. You know, I didn't know what to expect. I didn't know how hard it would be. I didn't know how much work it would be. I didn't know completely what to expect.
But what I found is that this is a really good job. I've always felt like public service is a really good thing to do.
(END VIDEO CLIP)
CHO: No surprise there. With the swine flu outbreak in the news, meanwhile, Mrs. Obama also sent get well wishes to the people of Mexico.
(BEGIN VIDEO CLIP)
M. OBAMA: We want to make sure that we're sending our thoughts and our prayers out to people as they're getting well and the rest of the people around the country as they're getting well from folks who've gotten the flu.
(END VIDEO CLIP)
CHO: And in honor of Cinco de Mayo, the first lady shared with the class her favorite food. What else? Mexican cuisine.
(BEGIN VIDEO CLIP)
M. OBAMA: I love tortillas, I love tamales, I love beans and rice. I love mole. I love all the mole sauces. I love beef and lamb and quesadillas.
I mean, you name it. The question is, what don't I like?
(END VIDEO CLIP)
CHO: You guys hungry? The first lady will be in New York -- Kiran likes Mexican too. I do too -- the first lady will be paying a visit, guys -- but we digress. She'll be paying a visit to the staff of the U.S. ambassador to the U.N., Susan Rice. Rice was an early supporter of President Obama. And tonight, she will attend the always glitzy event, "Time" magazine's "100 Most Influential People."
Sorry, I got a little sidetracked with food. Just a little hungry this morning.
CHETRY: You know, she gets a lot of questions from the young kids.
CHO: She does.
CHETRY: I mean, it's fascinating. You know, there's a chef in the White House.
CHO: Yes.
CHETRY: And he makes whatever you want whenever you want.
CHO: And kids are unafraid.
CHETRY: Yes.
CHO: We noticed (INAUDIBLE) whatever they want, you know. But anyway, this is interesting stuff.
ROBERTS: Kids say the darndest things, don't they?
CHO: Don't they?
ROBERTS: Make a TV show. Thanks.
A car chase being filmed in New York City for Nick Cage's new movie didn't go exactly according to script. You can see one of the stunt cars in this video here, a Ferrari, weaving in and out of traffic at Times Square. The high-powered sports car then goes out of control. Whoops. Jumps a curve, hits a lamppost and smashes into the front of a restaurant. Two...
You would. Suddenly he was trying to turn the Sbarro's into a drive through there. You can see one person lying on the ground. Two people suffered minor injuries. The scene being filmed for "The Sorcerer's Apprentice."
CHO: You're on fire this morning.
CHETRY: And to all the cars and everything else, they were supposed to be in the scene.
ROBERTS: Yes.
CHETRY: That wasn't just a...
CHO: That's a real car.
CHETRY: That wasn't a "Kit" car.
ROBERTS: No. It was a real Ferrari and it wasn't supposed to jump the curb or smash into the lamppost. CHETRY: That's right.
ROBERTS: Or the Sbarro's.
CHETRY: Exactly. And then you saw the guy's leg, but only minor injuries.
ROBERTS: Yes, minor injuries.
CHO: Thank goodness for that.
ROBERTS: Yes.
ROBERTS: President Obama steps out of the Middle East diplomatic stage today meeting with Israel's president. We're going to talk to a Middle East expert about the challenges that he'll face trying to get Israelis and Palestinians to make peace. Jamie Rubin with us this morning.
And al Qaeda launching a slick new video to recruit Americans. Only this video isn't from Pakistan or Afghanistan, it's from the Horn of Africa. And intelligence experts are taking notice.
It's 23 and a half minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. It's 26 minutes after the hour.
In the hunt for new recruits, al Qaeda is launching a new highly polished production with a hip-hop vibe to attract young men in the United States and other English speaking countries to join the jihad in Somalia.
CNN's international security correspondent, Paula Newton, is live in London for us this morning. This is something that anti-terror authorities are paying an awful lot of attention to, Paula. They think that it might work here.
PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Absolutely. They've, in fact, seen it work with dozens of men already from the United States. And we have reported on that at CNN.
You know, John, I've been going through these videos for years now and I never thought I'd be saying rap and hip-hop in conjunction with Al Qaeda. But here, take a look.
(BEGIN VIDEOTAPE)
NEWTON (voice-over): This latest video from Somalia's al Qaeda backed Al-Shabab (ph), literally, the youth, is startling. Sleek and accessible with any reality TV show, and then there's the English.
UNIDENTIFIED MALE: So basically what we did is set up our troops alongside the road. NEWTON: American English. A fully exposed Abu Mansoor Al-Amriki dubbed "The American" by al Qaeda now in Somalia apparently training and counseling Somalis from North America and Europe.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Away from our families, away from the cities, away from, you know, ice, candy bars, all these other things, is because we're waiting to meet with the enemy.
(END VIDEO CLIP)
BEN VENZKE, JIHADI VIDEO ANALYST: We're seeing perhaps their most sophisticated attempts so far to really reach an audience of potential recruits in America. And it's one of the things that made that video very significant.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Mortar by mortar, shell by shell, only going to stop when I send them to hell.
(END VIDEO CLIP)
NEWTON: And behind the hip-hop vibe and modern graphics, the U.S. government says Somalia is an emerging terror hotspot which can pose a threat beyond its borders.
Sheikh Ahmed Matan says he knows of hundreds of young Somali men who have returned to Somalia for terrorist training.
SHEIKH AHMED MATAN, LONDON-BASED IMAM: A lot of young people from here, from America, from Canada, everywhere from Europe, they went there.
(END VIDEOTAPE)
NEWTON: You know, we don't want to overstate the risk here. But the sheikh is really quite open about saying how long can it be before some of those trained young men then turn those weapons of terror on us, whether it be in Europe or the United States -- John.
ROBERTS: Yes. You know, it's not exactly the blond-haired blue- eyed terrorist that many people thought al Qaeda was trying to recruit. But, you know, brown hair, brown eyed, you cut the hair, polish them up a little bit, you know, you could put them on a plane and who would know?
NEWTON: Absolutely. And more than that, it is preying on the very Somali communities that many of us have in the communities. And they're coming out and they're saying, look, this is a problem. And they are now, just now, starting to work with the U.S. government and other governments in Europe to say this is a problem with our young men.
ROBERTS: All right. Paula Newton for us from England this morning. Paula, thanks so much for that - Kiran.
CHETRY: Twenty-nine minutes past the hour. Checking the top stories now.
World markets overseas reacting to Wall Street's rally. And in just three hours, the Dow will open above 8400 for the first time in four months and the S&P 500 in positive territory for the first time this year.
The markets reacting to good news in housing. Pending home sales were up more than expected, and also a rise in construction spending. Analysts were expecting no growth at all there.
Four Americans quarantined in China because of swine flu fears. A spokeswoman for the U.S. embassy in Beijing says two of the Americans were in Beijing. The other pair in the southern province. Two of the Americans have been released. So far, the U.S. government has not issued a statement of concern over China's treatment of the Americans.
And believe it or not, we haven't seen the last of Janet Jackson's infamous wardrobe malfunction at the 2004 Super Bowl. The Supreme Court has ordered a federal appellate court to reconsider its ruling last year in favor of CBS, and the appeals court threw out the FCC's $550,000 fine for Jackson's breast-baring performance, saying the incident lasted less than a second and should have been regarded as "fleeting.
Last week, the high court upheld the FCC's policy threatening fines on so-called fleeting expletives on live television.
Well, a big meeting of the American-Israel Public Affairs Committee or AIPAC as it's called. Israeli's President Shimon Peres was there in person, Monday, and also Prime Minister Benjamin Netanyahu spoke late last night by satellite.
Earlier today, President Obama is going to be waiting in to the Israeli-Palestinian conflict. His meeting with Peres comes after Netanyahu said it's time to talk peace again.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER, ISRAEL: We're prepared to resume peace negotiations without any delay and without any preconditions. The sooner, the better.
(END VIDEO CLIP)
CHETRY: All right. Well, that's what the two Israeli leaders are not saying, though, that's getting all the attention this morning.
And joining me is Jamie Ruben, former assistant U.S. secretary of state. Also, a professor at Columbia University.
Good to see you this morning.
JAMES RUBIN, FORMER U.S. ASSISTANT SECRETARY OF STATE: Good to see you, too.
CHETRY: So analysts are noting that we did not hear either of them say that they support a Palestinian state. What's going on the Israeli side right now?
RUBIN: It looks like the new government there, Prime Minister Netanyahu, is trying to avoid committing to a Palestinian state and trying to get something for himself when he does commit. So he's a real bargainer. He bargains with the United States. He bargains with his allies, just as much as he bargains with -- with his adversaries, the Palestinians.
So, he's trying to come over to the United States, meet with President Obama, and get something for saying the obvious. What everybody agrees to, which is that there needs to be a two-state solution. He's seeing if he can get something out of America for doing that.
CHETRY: And meanwhile, on the other side, you have, you know, a difficult situation where there's sort of two factions if you will. There's the Palestinian authority that the world recognizes. Then there's the Hamas leadership that, you know, have the support of most of the Palestinian people. And Hamas' political leader again coming out and saying, they're not going to recognize Israel.
So, how do you even begin this process?
RUBIN: Well, that's what Prime Minister Netanyahu has on his side. He's allowed to say all of the things he just said to the United States. So why should they make concessions.
The problem is that the Palestinians have the split leadership. On one side, Hamas, the group that's taking control in Gaza. They just had an interview with their leader in today's newspaper. And he's trying to say he wants to talk to the new president in the White House, trying to be in the group like Iran and Cuba and North Korea that President Obama is prepared to talk to because Hamas is not in that group.
CHETRY: Right.
RUBIN: But he's not willing to take the step that everybody is waiting for them to take, which is to simply recognize the state of Israel, not to agree to a specific negotiations on specific issues. And he won't do that.
CHETRY: I think that a huge -- that that seems like a huge stumbling block to getting anything worked out for this administration.
RUBIN: Absolutely. I doubt the day will come when this administration is prepared to go to, let's face it, a meeting of the American Israeli Political Action Committee like his meeting today in Washington, and say, you know what, we're going to meet with Hamas despite the fact that they won't recognize Israel. That is something that President Obama said he wouldn't do. So I don't think it's going to happen. And those who think it is, I think are just dreaming.
CHETRY: And so where does this leave us in this process? I mean, this is something that this new administration is pledging to tackle. And it seems we're back to square one as we always are when we discuss this.
RUBIN: It's not good. It's not good news at all. There are two big issues -- the Palestinian issue and the Iran issue. Neither of them have seen any progress in that region. The Israelis are going to say why should we move on the Palestinian issue unless we solve the problem with Iran. The Palestinians and the Israelis aren't getting along.
So what I would say is the effort is being made by Washington, the things that they need to do to at least try. But the prospect of success anytime soon is very, very low. The only wild card possible is an agreement with Syria, between Syria and Israel that people think is plausible.
Prime Minister Netanyahu has done this sort of negotiating in the past with the Syrian leader. The issues are not that difficult if both sides want to do it. That's our best chance, Syria, but even that I would say is well under 50-50.
CHETRY: Well, all right. Always great to get your take.
James Rubin, former assistant secretary of state. Thanks for being with us.
RUBIN: Thank you.
ROBERTS: Americans certainly love a good mug shot. The more frazzled and frantic, the better. And that's why some thinks that our fascination with arrest photos could actually save the newspaper industry.
And the president eased travel restrictions for Americans with relatives in Cuba. So what's it like to search for your roots on that island nation now. What our Jim Acosta found when he went to Cuba looking for relatives.
It's coming up on 35 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to Most News in the Morning. A live look at Boston right now. Thanks to our friends at WCVB. Fifty-one degrees there. Rain in the forecast yet again today.
Make or break talks between "The Boston Globe" and its largest union are expected to resume in the next day or two. Yesterday, the two sides hit a dead end unable to reach an agreement over lifetime job guarantees. "The New York Times," which owns the globe has said that it's prepared to shut down the 137-year-old newspaper unless "The Globe" can cut $20 million in annual costs. And at a time when dozens of newspapers are searching for cash, some in the industry are tapping in to our fascination with mug shots. The unbecoming images of our fellow residents. And apparently, it's paying off.
CNN's Carol Costello is in Washington. She's following this story for us.
What is this all about?
CAROL COSTELLO, CNN CORRESPONDENT: It is so weird, John. I can't even tell you.
You know, here's an idea for newspapers who want to survive -- publish mug shots. Strange as it sounds, some believe that mug shots mean big business. I mean, you can buy weeklies and look at hundreds of mug shots. It's become quite the picture gallery of shame.
Except, many appearing in those mug shots now look great. They're smiling. So many mug shots now look like prom photos, it's become a strange sort of phenomenon.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): Maybe the trend started in Hollywood.
(VIDEO CLIP, "RAISING ARIZONA")
HOLLY HUNTER, PORTRAYING "EDWINA 'ED' MCDUNNOUGH": Turn to the right!
(END VIDEO CLIP)
COSTELLO: In the movie "Raising Arizona," a flirty mug shot paved the way...
(VIDEO CLIP, "RAISING ARIZONA")
HUNTER: I do.
(END VIDEO CLIP)
COSTELLO: ...to matrimony.
In real life, it paves the way to profit. In Florida, local newspapers are clamoring for mug shots and feature them prominently. So does New York's newsday.com. And the Chicagotribune.com.
Keep in mind, not all of these people have been convicted. Yet, there are actually whole newspapers featuring only mug shots.
COL. JIM PREVITERA, HILLSBOROUGH COUNTY, FLORIDA SHERIFF OFFICE: It's probably the same reason that people drive by police officers placing somebody under arrest and stop or crowds gather to watch police activity.
(VIDEO CLIP, "RAISING ARIZONA")
HUNTER: Turn to the right.
(END VIDEO CLIP)
COSTELLO: And just like in the movies, public misery has turned mug shots into something quite different. Forget those unsightly photos of the past. Forget shame.
Shannon Holton was arrested for DUI. While she's not proud of that, she is aware her mug shot, whether she's found guilty or not will be seen in cyberspace forever.
SHANNON HOLTON, PHOTOGRAPHED FOR MUG SHOT: You can Google search my name and the first thing that's going to come up is my mug shot. So either way everybody is going to find out. And at least this is a chance for me to get my point of view out there.
COSTELLO: She also feels her privacy has been invaded since her case hasn't even gone to trial. Her smile is her way of saying I will rise again.
Others are more crass. This woman is making an obscene gesture. She's charged with DUI and child endangering. Defense attorneys say both strategies are bad ideas.
JOHN TREVENA, ATTORNEY: If you have a photograph of a person with a real toothy grin after just being arrested for a very serious crime, jurors might find that somewhat offensive and find that the person is looking at it in kind of a dismissive way.
DEREK WILDS, PHOTOGRAPHED FOR MUG SHOT: I understand that.
COSTELLO: But Derek Wilds is not concerned.
WILDS: Even in the most negative situation of being in a booking photo, you've got to be positive about it. There's no ifs, ands or buts about it. You've got to make the best out of a bad situation.
COSTELLO: And the folks who featured his face and hundreds of others couldn't be happier.
(END VIDEOTAPE)
COSTELLO: Now keep in mind many of these mug shots are of people who have not been convicted of any crime, and some say that is an invasion of privacy to publicize their photos. Colonel Previtera assures me, though, if a person is found not guilty, their picture will be removed from public view - John.
ROBERTS: Boy, I -- I'm speechless. I don't know what to say.
COSTELLO: We live in a weird culture, don't we? I mean -- I mean that people would buy whole newspapers just to look at someone's mug shot is amazing. But I guess you want to know if your neighbor's been arrested. ROBERTS: And that people would behave that way when their mug shot is being taken when they're accused of committing a pretty serious crime -- I can't -- I guess I'm stunned. I just can't figure it out.
COSTELLO: Now you've seen it all.
ROBERTS: Carol, thanks so much for this.
COSTELLO: Sure.
ROBERTS: Kiran.
CHETRY: All right. Well, there are new details now into the investigation of former presidential candidate John Edwards' campaign funds with hush money paid to his mistress. The latest on the investigation.
Also, no letup for the southern part of the country. Severe storms more today and they could cause some major flight delays. Our Rob Marciano is keeping an eye on the action.
It's 42 minutes past the hour.
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CHETRY: Welcome back to the Most News in the Morning. A live look right now at Atlanta. It is 66 degrees there. It's going up to 78. They are looking at some scattered thunderstorms though in the forecast today.
And at 45 minutes past the hour, we fast forward through the stories we'll be watching on CNN today.
Attorneys generals from three states - Connecticut, Illinois and Missouri - are going to be meeting in New York with Craigslist representatives today. They want to try to eliminate the ads for illegal sexual activities. The site's, quote, "erotic services section" thrust into the spotlight after 23-year old medical student Philip Markoff was arrested for allegedly killing a masseuse he met through Craigslist.
How's the economy doing? Well, at 10:00 a.m. Eastern, Fed Chair Ben Bernanke delivers an economic progress report to Congress. He's expected to tell lawmakers that the economy is coming around, but that it could still be years before things get back to normal.
Also, First Lady Michelle Obama heading to New York City for the first time as first lady. And this afternoon at 4:00 p.m. Eastern, she'll meet with the staff of the U.S. mission to the United Nations. And then tonight, she's going to be headlining "Time" Magazine's 100 Most Influential People gala - John.
ROBERTS: Rob Marciano at the Weather Center in Atlanta for us this morning.
(WEATHER REPORT)
CHETRY: Well, they want to be alone, but good luck. We'll have the play-by-play of the president and the first lady's date night in D.C.
Also, has travel restriction eased for Americans with relatives in Cuba? Our Jim Acosta goes back to find family there. It's a reporter's notebook on the island nation.
Forty-eight minutes after the hour.
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CHETRY: Welcome back to the Most News in the Morning.
The president and first lady were stepping out for date night this past weekend. It was their dinner outing in D.C. drew quite a crowd. In fact, it's one of the most popular stories on cnn.com right now. Here's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): Just a cozy little dinner date for two if you don't count the 200 or more people gawking outside or the motorcade. Or the 13-member press pool snapping away, or the guys with the big guns. How romantic.
This is the anatomy of a White House date. Starting with Michelle Obama getting in on the wrong side of the car. It's the president who enters closest to the White House door. They're off. Destination unknown. BlackBerry's pool reporter, running the occasional red light arriving within minutes in Tony Georgetown.
UNIDENTIFIED MALE: What's the name of that restaurant?
MOOS: That would be Citronelle described by one magazine as one of the most exciting restaurants. So this particular evening, it looked like an SUV parking lot crossed with a crime scene.
JEAN JACQUES RETOURNE, MAITRE D' CITRONELLE: They walked in, people were totally flabbergasted.
UNIDENTIFIED MALE: For me, they looked like teenagers.
RETOURNE: People were just like looking at them like in total disbelief.
MOOS: As the first couple walked into one of Citronelle's semiprivate rooms, the restaurants mood wall that changes colors must have been moody indeed.
RETOURNE: They walked in, ordered two martinis and made it very clear that they wanted to spend some time alone.
MOOS: Reminds us of when the widowed president goes on a date in the movie "American President." UNIDENTIFIED MALE: An intimate dinner with Sydney Wade at a romantic Georgetown bistro.
MOOS: President Obama had short ribs. Mrs. Obama had a lobster burger. A meal here runs about $100 per head.
(on camera): By the way, the president paid for dinner with his personal VISA card and left a 20 percent tip.
UNIDENTIFIED MALE: Michelle kissed me here and here twice.
MOOS (voice-over): And told them the meal was great in French. Exiting to cheers, the date continued in the motorcade.
UNIDENTIFIED MALE: Tell Obama I said hi.
MOOS: Finally back on to the lamp-lit ground to the White House. The first couple held hands and took a walk. Unromantically timed by the press, it's seven minutes. But what would a date be without sharing a dessert? They split a Neapolitan.
(on camera): Little did the pool reporter know that when they joked waiting for leftovers, all that would be leftover was the pastry minus the cream feeling from the dessert.
UNIDENTIFIED MALE: They removed the dough and ate the cream.
MOOS (voice-over): It's really is a puff piece. At least they each had their own martini.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHETRY: You got to dissect everything. I know.
ROBERTS: Nothing is a secret anymore.
CHETRY: He shouldn't have given all of that detail about them dissecting the dessert. They can do whatever they want.
ROBERTS: Let them have dinner.
Glimmers of hope on Wall Street, and an important day ahead, banks getting results of their stress test. Will they need another bailout? Your money, your future, and reasons to stay positive, just ahead.
Plus, a CNN exclusive. Our Nic Robertson takes you behind enemy lines in Afghanistan to talk to terrorist. You want to see his report, coming up.
Fifty-four minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
President Obama calls it a new beginning in U.S. relations with Cuba. He has eased travel restrictions allowing Americans to visit their relatives in Cuba. That may not sound like a big deal if you don't have a history there. But if you do, being able to go back and find your family can certainly be an eye-opening experience.
As our Jim Acosta learned firsthand. He just returned from the island nation. He's with us now live from Washington.
Must have been an amazing experience, Jim.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: It really was, John.
You know, and it's not really in my reporter's DNA to write a story about myself. But my dad is a Cuban immigrant and I've always wanted to know more about my island roots. So we grabbed the camera, and went in search of my family tree on Cuban soil.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): As the sun came up over Cuba's capital, we set out on the Malecon, the city's dramatic seawall to leave Havana's hustle and bustle. In just half an hour, my Cuban guide, Ernesto and I had made our way to the village where my father grew up.
My dad left Cuba in 1962, just a couple of weeks before the Cuban missile crisis. He was 12 years old. His childhood memories were all I had ever known about the island. All of that was about to change.
At the church where my father was baptized, I met Yolanda. She told me for five pesos, I could have a certificate of my dad's baptism.
We then went to see her husband, known the Cuban side of my family all his life. He led me to my father's cousin who had no idea I existed. I told him we're on the island to report on U.S.-Cuba relations. He tells me they should get along. We swap stories, share a few family photos, and then with a hug, I'm off.
(on camera): It's always been a mystery to me who my family is. And all I had was stories from my father. And now I'm starting to put some faces with the stories. So this is a great day.
(voice-over): Not that the U.S. is making it easier for Cuban- Americans to visit their homeland, family reunions are cropping up across the island. Those families (INAUDIBLE) are still in charge. But Cuba's big star, Fidel, is in the twilight of his life.
And Cubans believe change is in the air, in the decades-old tensions with the U.S. as this elderly man told me in old Havana, "Me gusto Obama." Translation, "I like Obama."
There are glimpses of the land, Cuban exiles left behind. Children playing in the rain on the steps of Cuba's capital building. Classic American cars roaming the streets, all on an island that's waiting to see what's next.
(END VIDEOTAPE)
ACOSTA: What is next? That is the question. And there are countless other Cuban-Americans on the same personal journey. And one way to sum up the feeling for many of these families is the sound we heard when our plane first landed in Havana, it was the sound of Cuban Americans cheering - John.
ROBERTS: So I expect that probably this weekend the Acosta clan will get together and you'll swap some stories with A.J.?
ACOSTA: Yes, I've got a whole camera full of pictures of old American cars. I'll have to send a few your way, John. And yes, it will be a special moment.
You know, my dad left in 1962 just a couple of weeks before the missile crisis with basically the clothes on his back. I know that sounds like a cliche, but it actually happened. He got on a Pan American flight and came back to the U.S., or came to the U.S.
And all these days and years later, he has not had many proofs of life of his background, of when he was born and so forth. So that baptismal certificate, for example, is going to be a huge gift because, you know, he needs more proof of just when he was born for paperwork reasons here in the United States. So there's a practical reason for me to go as well.
ROBERTS: Pretty amazing experience.
Jim Acosta for us this morning.
Jim, thanks so much. Great to see you.
CHETRY: His dad is going to be wanting to know a lot about it.
(CROSSTALK)
ROBERTS: Yes, I know. A.J. is going to go crazy when he goes over there.
CHETRY: Good for him.
ROBERTS: Thanks so much for being with us.
