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Anderson Cooper 360 Degrees
Manhunt for Osama bin Laden; Weapons Hunt: David Kay's Feedback
Aired January 28, 2004 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): A former weapons inspector testifies. Will his claims shake up the race for president?
New information about Osama bin Laden's whereabouts. Is the U.S. zeroing in?
The Democrats march south. Will Kerry ditch Dean once and for all?
(END VIDEOTAPE)
ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.
COOPER: Good evening. Welcome to 360.
This just in to CNN: a major shakeup in the Howard Dean campaign. Just one day after a disappointing New Hampshire finish, Dean's campaign manager is out. A former Al Gore operative is in.
We'll have detail in a moment. But first, let's go to our top story.
New clues tonight in the hunt for Osama bin Laden. Intelligence sources tell CNN there is some evidence bin Laden has been in Afghanistan in recent months, back at the place where he began his war of terror on America. You will not see this report anywhere else. An exclusive now from CNN's Mike Boettcher.
(BEGIN VIDEOTAPE)
MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT (voice-over): You've seen the tape, Osama bin Laden visiting a terrorist training camp in Afghanistan to declare war on America. That was five years ago. But now CNN has learned from coalition intelligence sources that bin Laden may have returned at some point to the same area, near the city of Khost in eastern Afghanistan.
Bin Laden's biographer, Paksitani journalist Hamid Mir, has been hearing similar reports from Arabs he met late last year in Afghanistan.
HAMID MIR, BIN LADEN BIOGRAPHER: Those Arabs told me he's roaming between southern Afghanistan and eastern Afghanistan.
BOETTCHER: The best intelligence still places bin Laden somewhere along the Afghanistan-Pakistan border, probably in the Pakistani tribal area of southern Waziristan. Hamid Mir, for one, wonders just how good that information is.
MIR: ... I think that Afghanistan is still a very suitable place for bin Laden because 90 percent of the country is not under the control of Karzai.
BOETTCHER: Proof that neither African President Karzai nor the U.S. control the country, says Mir, is this tape from Osama bin Laden that was released last September. Mir believes it was shot in the spring of 2003, near the eastern Afghanistan city of Gardez (ph), a sign that bin Laden has, at the very least, been on the move.
(END VIDEOTAPE)
BOETTCHER: Now, this news comes as U.S. military officials confirm there will be a spring offensive in Afghanistan to round up surviving members of the Taliban and al Qaeda and to go after bin Laden. And, as well, the top U.S. commander in Afghanistan is promising that bin Laden will be caught before the end of the year -- Anderson.
COOPER: Strong words there, Mike. Let's talk about this. You say there's going to be this offensive in Afghanistan. Let's talk about what's going on in Pakistan in these areas not under government control. How active is the U.S. and maybe Pakistan secret intelligence in those areas?
BOETTCHER: That is one of the best-kept secrets, how active the U.S. is there. And no one will confirm this on the record, but you go into the region there, and there is a lot of talk about American operations along that border.
Now, one of the grave concerns and why this is being sped up are the two assassination attempts against Musharraf. They are afraid that Musharraf might get killed. And they're going to get more cooperation from Musharraf, the president of Pakistan, than they would from his successor if he does not survive.
COOPER: It's a fascinating report. Mike Boettcher, thanks very much for the exclusive. Appreciate it.
Now to the hunt for weapons on Iraq. On Capitol Hill today, blunt feedback from the man who, until very recently, led the WMD search. The latest now from CNN's national security correspondent, David Ensor.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The man the CIA sent to look for weapons of mass destruction in Iraq says the failure to find any reveals weaknesses in America's intelligence agencies. DAVID KAY, FMR. CHIEF WEAPONS INSPECTOR: We need capabilities that we do not have with regard to intelligence. We've had a number of surprises.
SEN. JOHN MCCAIN (R), ARIZONA: Do you believe that we need an independent, outside investigation?
KAY: I generally believe that it's important to acknowledge failure, that it is going to take an outside inquiry, both to do it and give yourself and the American people the confidence that you have done it.
ENSOR: That answer pleased McCain and Senate Democrats who are pushing for an outside inquiry into intelligence shortcomings. It did not please the Senate Intelligence chairman whose committee is finishing up its own report.
UNIDENTIFIED MALE: I personally take some umbrage at people who, for one reason or another, think we need to have an outside inquiry before our inquiry is even complete.
ENSOR: Though Kay has created problems for President Bush by saying he expects no weapons to be found in Iraq, Democrats are not happy that he blames the intelligence community, not the White House, and repeatedly denied there was any political pressure to skew the findings on Iraq.
SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Many of us feel that the evidence so far leads only to one conclusion, that what has happened was more than a failure of intelligence. It was a result of manipulation of the intelligence to justify a decision to go to war.
(END VIDEOTAPE)
ENSOR: Kay's explosive comments since leaving the CIA are providing ammunition for all sides in this political year. Irritated intelligence officials argue that Kay's conclusions about the lack of weapons in Iraq are premature. The search is still on, they say. And one official argued that some of his comments went further than his knowledge -- Anderson.
COOPER: All right. David Ensor, thanks very much for that from Washington.
On to politics now, and a major shake-up, as we mentioned, just hours ago in the Howard Dean campaign. Word some staffers even may be facing pay cuts.
For all the details, we go live to Burlington, Vermont and CNN's senior political correspondent, Candy Crowley -- Candy.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Anderson, here's what we know. In joint statements released separately but at the same time, Governor Dean and Joe Trippi, his campaign manager, confirm what we've been reporting. And that is that Roy Neel, who has been the campaign's sort of Washington insider, will be taking over the campaign. Neel being a former Gore staffer. And that Joe Trippi will be leaving, by his his choice, Trippi says in his notice.
He also says pointedly that he -- out to his supporters, and to Dean supporters, saying he may be leaving the campaign, but he is not leaving the cause. And he urges those that he's been communicating daily over e-mail to stay with the cause.
Now, we are told that this all came down in a meeting about noon today between the governor and Trippi and others about 3:00. We asked him about the possibility of pending changes. Here's what he said.
(BEGIN VIDEO CLIP)
HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: There's not going to be changes to my staff today.
UNIDENTIFIED MALE: Are there going to be any changes in coming days?
DEAN: I'm not asking anybody to leave. There may be some additions, but nobody is leaving. At least I hope they're not leaving.
UNIDENTIFIED FEMALE: What about Roy Neel?
(END VIDEO CLIP)
CROWLEY: As can you see, high tension times here in the Dean campaign, as it struggles not just about strategy, but also an internal struggle about message. There were those who wanted to go and stick with the anti-lobbyist, anti-special interests, others who wanted to go for the more traditional message of jobs and the economy. So big changes tonight, Anderson, here in Burlington.
COOPER: Big changes, indeed. We're going to have more on this later tonight. Candy Crowley, thanks very much from Burlington.
Coming up, we're going to talk to former presidential hopeful and now Dean supporter, Carol Moseley Braun, all about the shake-up. That's coming up in just a bit.
For the new front-runner today, it is onward and westward for presidential hopeful John Kerry after winning the New Hampshire primary. Kerry is on the move. He is planning to hit each of the five states, holding primaries next Tuesday, as well as the two that will hold caucuses.
Right now, Kerry is in St. Louis, Missouri. Our Kelly Wallace is there.
(BEGIN VIDEOTAPE)
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Before leaving Boston, the undisputed front-runner played for the cameras and predicts a tough race ahead.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I expect to compete with the same underdog mentality, with the same quality of every vote counts. I'm going to fight for every vote.
WALLACE: The senator from Massachusetts must now prove he can score in the South, the West, and other parts of the heartland, with seven states holding contests Tuesday. He chose to fly first to Missouri, next week's biggest delegate prize, and a state now up for grabs with hometown Congressman Dick Gephardt out of the race.
KERRY: This is the Show-Me State. And we're here to show George Bush the door.
WALLACE: Kerry's campaign announced the senator would be getting the highly coveted backing of South Carolina Congressman James Clyburn, the state's most popular African-American lawmaker.
KERRY: I'm thrilled to have Congressman Clyburn's endorsement.
WALLACE: But the campaign seems to be a step ahead of Clyburn, who refused to confirm who he was endorsing, although sources close to Clyburn and the campaign say he will make it official Thursday.
UNIDENTIFIED MALE: When the bullets began to hit the side of the boat, boom, pow, pow, pow, we find out that John Kerry can lead.
WALLACE: Kerry's advisors say they are now running ads in all the February 3 states. The newest one playing in South Carolina is designed to appeal to the state's large number of veterans.
(END VIDEOTAPE)
WALLACE: And one of the next big challenges ahead for John Kerry is how he responds to attacks which are likely to come from some of his opponents and from the Republican Party. This after his decisive and back-to-back victories in Iowa and last night in New Hampshire -- Anderson.
COOPER: All right. Kelly Wallace on the move. Thanks very much, Kelly.
Let's put John Kerry's New Hampshire win in perspective for a moment. Since 1972, the only candidate to win both the Iowa caucuses and New Hampshire primary and failed to win his party's nomination was this man, Edmund Muskie. But winning Iowa and New Hampshire by no means guarantees the White House, of course. The only candidate to win both the Iowa caucuses and New Hampshire primary and go on to take the party's nomination and then be elected president is Jimmy Carter in 1976.
We're following a number of developing stories right now for you "Cross Country." Let's take a look.
Just in from Miami, Florida: gay adoption ban stays. An appeals court has rejected a challenge to Florida's complete ban on adoption by gay couples. Four gay foster parents have filed suit to overturn it. But the court says it is not a constitutional one and should be settled by the state legislature. Florida is the only state in the country with such a ban. New York City: winter wonderland. An overnight storm dumped six to eight inches in the city and in neighboring states. The storm reeked havoc along the East Coast, and nearly 100,000 people are still without power today. But like some political campaigns, the storm just couldn't keep its momentum. It sputtered over New England, dropping a only a few inches of snow instead of the predicted eight to 14 inches.
Anchorage, Alaska: Exxon's hefty bill. A federal judge has ordered Exxon Mobil to pay $6.75 billion -- yes, that's billion -- in punitive damages and interest. The money goes to thousands of fishermen and others affected when the Exxon Valdez spilled 11 million gallons of oil into Prince William Sound back in '89.
Atlanta, Georgia: R&D singer arrested. Faith Evans and her husband-manager, Todd Russa (ph), are charged with possession of cocaine and marijuana. Traffic officers allegedly found the drugs last night after they pulled over the couple's vehicle for an improper license plate.
And in Aiken, South Carolina: James Brown in jail. Quite a mug shot, that. The 70-year-old godfather of soul was arrested today on domestic violence charges.
Brown has a history of legal problems, of course. He was arrested on drug-related charges in '88 and '98 and served a two-and- a-half year prison term.
That's a look at stories "Cross Country" tonight.
Babies for rent in America. An international drug ring using children as cover. It sounds ridiculous, but it's true. Find out how a Custom's agent cracked the case.
And Martha Stewart on trial. A key witness about to take the stand. A sneak preview of his testimony.
Also, have you noticed a poker craze sweeping the country? We'll get tips from one of the world's top players as part of our weeklong series, "Gambling Nation."
Before all that, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.
(COMMERCIAL BREAK)
COOPER: Well, the key prosecution witness against Martha Stewart is expected to testify tomorrow and may say he was ordered to give her a secret stock trading tip. Stewart is certainly the star of her own courtroom drama, but there is a supporting cast playing vital roles in how this story will end.
CNN's Chris Huntington reports.
(BEGIN VIDEOTAPE) CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Martha Stewart's future and freedom may hang on the credibility of Douglas Faneuil, former assistant to Stewart's co-defendant and former stockbroker, Peter Bacanovic. Faneuil executed Stewart's fateful sell order over the phone in December of 2001. And now he's the government's key witness. He says he lied to back up Bacanovic and Stewart in return for an extra vacation and plane tickets.
HOWARD WILSON, FMR. FEDERAL PROSECUTOR: He becomes an incredibly critical witness who tells the entire story, and he's pled guilty to it.
HUNTINGTON: The defense wants to portray Faneuil, who is 28, as a young mixed up liberal arts grad out of his depth in the brokerage business. Bacanovic, who had ambitiously parlayed social connection into a lucrative brokerage business, needed an assistant who could work with a rich and famous clientele that included Stewart and Sam Waksal. Federal prosecutors will argue the hallmark of that world was mixing business with pleasure.
UNIDENTIFIED MALE: I wouldn't be surprised if the government made an issue of this and said, for example, that stock tips and information about companies was passed around like canapes at the party.
HUNTINGTON: But Bacanovic's friends and former colleagues insist he is no social-climbing dilettante, and describe him as savvy, sophisticated and serious about his work.
(on camera): One more key witness for the government is Martha Stewart's long-time friend, Marianna Pastinek (ph), who was traveling with Stewart the day she sold her ImClone shares. Pastinek's (ph) husband also sold ImClone stock on that day. And federal prosecutors say that she will testify that she and Stewart were well aware that they had privileged information.
Chris Huntington, CNN, New York.
(END VIDEOTAPE)
COOPER: We're going to talk more about this case with 360 legal analyst, Kimberly Guilfoyle Newsom in just a bit.
A strange development in the legal fight for R&B singer R. Kelly today. A judge in Chicago is allowing Kelly, who faces child pornography charges, to go to next month's Grammy Awards in Los Angeles. But the judge ordered that Kelly must travel by bus and he can't associate with Michael Jackson, who is charged in a child molestation case as well. No further explanation of the judge's ruling today.
And speaking of Michael Jackson, today a judge denied a request by the father of the alleged victim in the case to be allowed visitation rights. In court documents, the father says he has not seen his son in nearly two years and is worried about the child's physical and mental health. The father pleaded no contest to child cruelty in 2002, as well as spousal abuse back in 2001, and was barred from seeing his children then.
We are tracking a number of developing stories around the globe right now. Let's take a look at the "UpLink."
London: cleared. The inquiry into the suicide weapons expert, David Kelly, exonerates British Prime Minister Tony Blair. Kelly was named as the source of a BBC report that said Blair's government had -- and I quote -- "sexed up" a report on Iraq's WMDs. The inquiry chairman, Lord Brian Hutton (ph), said the government did not act in a dishonorable, underhanded or duplicitous way.
Hutton (ph) did take the BBC to task for its failure to substantiate its reported story. So today, the chairman of the BBC resigned.
Guantanamo Bay, Cuba: ready for release. The U.S. may be about to free nearly two dozen detainees from Gitmo. The U.S. ambassador for war crimes says the prisoners are considered a low security threat. About 660 suspected Taliban and al Qaeda members have been held at the U.S. Navy base since their capture during the war in Afghanistan.
Guangxi Provinc, China: halting the spread of bird flu. They have begun to slaughter poultry on farms in southwestern China. Officials confirm that several ducks found dead on three local farms were infected with the virus.
And that is tonight's "UpLink" for you.
On a pig farm in Canada, a bizarre story. Police say they have found the remains of nine more women who may have been the victims of accused serial killer Robert William Pickton. Pickton is already facing 22 counts of murder. Some 60 women have disappeared from Vancouver's seedy downtown east side over the last 20 years.
Gary Tuchman has the latest.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): The grotesque secrets of a farm in western Canada continue to be revealed.
UNIDENTIFIED MALE: My first thoughts when that door opened was that my wife was going to be devastated.
TUCHMAN: Terry Hughes (ph) was at the door this week when police told him the DNA of his wife's sister, Carrie Kosky (ph), had been located. The 31st identification of DNA of a murdered woman at the pig farm of Robert Pickton. Authorities say Kosky (ph) is one of nine women whose remains were recently found at the British Columbia farm.
UNIDENTIFIED FEMALE: The information that we're coming forward with today is new. It's just been developed in the last few weeks.
TUCHMAN: Pickton is currently charged with 15 counts of first degree murder. But the Canadian authorities say they will be adding charges. A total of 65 women have been reported as missing from the grimy downtown east side neighborhood of Vancouver. Many were drug addicts who worked as prostitutes. Pickton was arrested almost two years ago.
UNIDENTIFIED MALE: Robert William Pickton, age 52 years, of (UNINTELLIGIBLE), was charged today with two counts of first degree murder.
TUCHMAN: But now those two counts have grown to 15 and are expected to be revised upward again soon. Meanwhile, the painstaking searching at the pig farm continues 23 months after the arrest.
UNIDENTIFIED FEMALE: Believe it or not, we're still somewhat in the early stages of our investigation.
TUCHMAN: Pickton's trial is expected to begin by the end of 2004.
Gary Tuchman, CNN.
(END VIDEOTAPE)
COOPER: Just an unbelievable case.
So why is poker suddenly all the rage? Have you noticed this? You're going to hear from one of the world's top poker players coming up. Part of our week-long series, "Gambling Nation."
Also tonight, late word of a major shake-up in Howard Dean's campaign. What's behind all the changes? We're going to ask one-time Dean Rival, now Dean ambassador, Carol Moseley Braun. She's going to join us live.
And a little later, no WMD in Iraq. And now damage control for the Bush administration. That is our "Midweek Crisis."
And it gets us to today's "Buzz." Was the war in Iraq worth it even if no WMD are ever found? What do you think? Vote now, cnn.com/360. We'll have the results at the end of the program.
(COMMERCIAL BREAK)
COOPER: Ah, poker. Coming up, you're going to hear from the poker king who helped train Matt Damon for that roll in "Rounders."
As the Super Bowl approaches, many Americans are placing wagers, big and small, on Sunday's big game. Gambling, of course, has become an enormous industry in America. And this week, it's the focus of a special series. Tonight, poker, an old game that has suddenly taken on a new life.
(BEGIN VIDEOTAPE)
COOPER (voice-over): If you haven't noticed lately, poker has gone prime time. On TV, kitchen tables and casino floors, it suddenly seems like everyone is learning how to ante, call, draw, bluff and fold. Since the debut of "Celebrity Poker Showdown," the World Poker Tour and the World Series of Poker, some casinos have reported 30 percent increases in poker playing.
That suits poker champs like Jennifer Harman just fine. For Harman, poker is a full-time job. And she knows a rookie when she sees one.
JENNIFER HARMAN, PROFESSIONAL POKER PLAYER: Within 15 minutes I think I know how everybody plays. Actually, some people actually play how they look. And you know that right when they sit down. You know, some people look goofy, you know they're going to play goofy.
UNIDENTIFIED MALE: She calls it (UNINTELLIGIBLE). Look at Phil (ph).
COOPER: Harman earns her living playing poker. She's won as much as $300,000, lost that much as well. She plays five to seven hours at a stretch several nights a week at a casino near her Las Vegas home.
HARMAN: It's mathematical, it's psychological. Being able to get into somebody's head, being able to play their hand before they even know how to play it. And when I'm right, it's the biggest thrill in the world.
COOPER: And Harman's words of wisdom to better your own poker game, well, it turns out it's not different from mom's advice.
HARMAN: If you win or lose, it doesn't matter. It's how you play the game. If you play well and you go home a loser, it's OK, because you know that eventually the money will come.
(END VIDEOTAPE)
COOPER: That's the hope anyway, I guess. One of the top male poker players is nine-time world champion Phil Hellmuth. He trained Matt Damon for that role in "Rounders." He's also written the book, "Play Poker Like the Pros." He is best known, perhaps, for his cocky style of playing the game.
We spoke today. I started off by asking him about his bad-boy image.
(BEGIN VIDEOTAPE)
PHIL HELLMUTH, PROFESSIONAL POKER PLAYER: For the five minutes during each day that I get upset, and not necessarily shouting, of course the cameras are there to catch that. So that kind of keeps my representation as the poker brat moving forward.
COOPER: But is that part of your strategy? I mean, does it help at all in playing the game?
HELLMUTH: No way. It doesn't help me at all. To get emotionally off keel like that is not good for me. It doesn't help me, and it's not intentional at all. It's just frustration, you know? Sometimes you just play so beautifully for five, 10 hours, or two or three days, and then someone does something that's just such a bad play and they end up taking you out. And it's just my own frustration. I should be handling it better than I do.
COOPER: You know, you talk about playing beautifully. What is it about poker that really appeals to you?
HELLMUTH: I just love playing poker. Especially no-limit hold 'em. I mean, you have to look at the people across the table from you. And you have to decide, do they have it or don't they have it. And then based on that, you have to make your move.
And I just love it when I'm reading people on the other side of the table. I know he has this. I know he has that. I know he has this. And then I can move on with nothing sometimes or...
COOPER: And reading people is a key part of doing well in poker, yes?
HELLMUTH: Absolutely. I mean, I like to tell people, if you read people well, you can't lose in no-limit hold 'em.
COOPER: What are some other tips you give for armchair poker players out there? I know you don't want to give too many tips because you might be playing these people one day. But what are some tips for people at home?
HELLMUTH: I talk about patience as being a huge element that the American public just doesn't get or understand until you closely examine the game. You realize that, hey listen, this game, Texas hold 'em, is set up, and so are all of the professional poker games.
They're set up to play a very patient strategy. And if you deviate from that, then you are in general going to lose. So number one tip for the American public, patience.
COOPER: All right. You play pretty high stakes. What's the most you've ever won?
HELLMUTH: Well, I won $755,000 when I won the World Series of Poker in 1989.
COOPER: All right. Not bad. I've got to ask you, though, what's the most you've ever lost?
HELLMUTH: Oh, well, in LA one day I lost $135,000. That wasn't much fun.
COOPER: And yet, you come right back at it. I guess you think your skill is going to carry you through?
HELLMUTH: You have to get back on the horse. I mean, what are you going to do? I mean, I'm a professional poker player. There's a lot of skill involved in the game. And you're going to have bad days. And I'm the kind of person, I think, that's always looking forward, always thinking about a bright future.
COOPER: Well, it is a fascinating topic. Phil Hellmuth, I appreciate talking to you. Thanks for joining us.
HELLMUTH: Thank you very much, Anderson.
COOPER: Here's a quick fast fact for you. The World Series of Poker has one of the largest pay-outs of any sport. Last year, the $2.5 million first place prize, which is the largest purse in any poker competition, went to 27-year-old amateur poker player Chris Moneymaker (ph). And yes, that is his real name.
We'll continue our series, "Gambling Nation," tomorrow, with the look of the fight against the so-called casino invasion. You know, many consider casinos a savior for states in the red, but who's actually getting rich? We'll look at that.
And on Friday, sports betting addicts. A growing problem on college campuses. You'll also meet a mob turncoat who says he fixed games. Now he's teaching others about what he says are the dangers of gambling.
(BEGIN VIDEOTAPE)
COOPER (voice-over): For Kerry, Dean and the rest, what's it going to take to capture the South?
Martha Stewart on trial. The government's star witness testifies tomorrow. How much damage can he do?
And director Sophia Coppola on her historic Oscar nomination.
360 continues.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COOPER: In the next half hour on "360" no WMD in Iraq and a president on the defensive.
Plus, a major shake-up in Howard Dean's campaign. Joe Trippi, campaign manager is out. I'll ask former candidate and Dean supporter Carol Moseley Braun what it all may mean. In a moment she joins us live.
And taking the stand against Martha Stewart. Tomorrow the government's star witness, how damaging will his testimony be?
First, let's check the top stories in "The Reset."
On Capitol Hill, the former chief weapons inspector in Iraq says he was probably all wrong in concluding Saddam Hussein had weapons of mass destruction when he was ousted. David Kay told Senate Arms Services Committee today there was a fundamental failure of intelligence.
Elsewhere in Washington the government has a new weapon against attacks on computer-based networks. You can sign up with a national cyber alert system for e-mail alerts or go to the Web site to learn about or report new threats.
In Buckeye, Arizona, day 11 in one of the longest prison hostage cases in history. Negotiators hope the two inmates still holding a female prison guard are becoming demoralized enough to release her soon. They freed her male co-worker Saturday.
In Washington the Federal Reserve is keeping interest rates at a 45-year low. But in a statement today the Fed hinted it might raise rates later in the year. That spoofed the stock market, it reacted badly.
That's a look at tonight's "Reset."
On to politics now. The day after his second place finish in the New Hampshire primary, former Governor Howard Dean shook up his campaign. A few hours ago we learned that Joe Trippi who just a month ago was credited to bringing Dean to front-runner status is no longer the campaign manager.
I'm joined from Chicago by former presidential candidate Carol Moseley Braun. She dropped out of the race two weeks ago and now is working for the Dean campaign. Ambassador, good to see you again, thanks for being with us.
CAROL MOSELEY BRAUN, FORMER PRESIDENTIAL CANDIDATE: Thanks Anderson, but I'm a volunteer, so you're clear.
COOPER: OK, well, you are receiving some moneys for travel purposes?
BRAUN: No. Well, no. When I travel, they pay for it, but I haven't -- that's been once.
COOPER: I'm sorry to mention this, but -- I don't want to get hung up on it, but I read $20,000 a month...
BRAUN: I know, it was wrong. It is a rumor I've had to back all over the country. It was not true. And whoever said it has retracted it. The person who said has not retracted it.
COOPER: All right. Good. Glad we got that out there.
BRAUN: I am, too.
COOPER: What do you make of Joe Trippi stepping down?
BRAUN: Where I come from there's an old expression about having tree shakers and jelly makers. The fact of the matter is Joe Trippi made this campaign happen. In the beginning he shook the tree. He got the country to focus on the platform of Howard Dean. He brought the dean candidacy to life. And now it's time for a different style for somebody to focus on the mechanics of making the campaign work on a state by state bases and getting the delegates sufficient for Governor Dean to get the nomination. So, Joe is still going to be around. He's going to be very much a part of this effort in other ways. But he just will not be involved with making the jelly, if you will.
COOPER: Clearly though it is not a good development. I mean, it is a sign that there is something going wrong, to have this man who, just in December, "The New York Times" was calling him the political consultant of the season. He was being praised for raising so much money on the Internet. Now, he's out, and your bringing in basicly A Washington insider from Al Gore's staff.
BRAUN: Well, what you've -- what they brought in is someone who knows the mechanics of running a national campaign. And that's not to say Joe Trippi does not. He does. Again, it is a different style, a different role. But I believe that it's going to be a harmonious transition. I believe it's just going to help build the campaign and build the effort for Governor Dean. Joe, again, gone but not forgotten. The fact of the matter is this campaign owes a great deal to Joe Trippi. And I personally just love him and think he's done a fabulous job and will continue to. So, I think it's going to be OK. I don't think it bodes ill for the campaign. If anything, it just suggest as maturation, a changing of style at this point.
COOPER: A lot of primaries/caucuses coming down the pipe this Tuesday, south and the Midwest, very important races. At some point Howard Dean has to come into first place in order to continue in this race.
Does he need to finish first, for instance, in South Carolina on Tuesday in order to continue?
BRAUN: No, I don't think so. Remember, he's got more delegates lined up than any of the other candidates at this point. It is a delicate race and a marathon, not a sprint. And so, in addition to South Carolina you've got Arizona, Oklahoma, the states in the West. This is the first time this campaign will turn to the South and to the West in this campaign season. I believe Governor Dean will do very well there as a competitor.
COOPER: Your advice to Governor Dean, as he approaches South Carolina, as he approaches some these other states, what does he have to do?
BRAUN: I hesitate to give advice. I think the best thing he could do is to stay on his message. He was the first candidate to come out and say the war in Iraq was a bad idea. He was the first candidate to come out and say budget deficits were a bad idea. He was the first candidate to talk about unfunded mandates being a bad idea. He has the courage to stand up and speak to the issues and ways that make sense to the American people. And I believe that that message in the end will carry him through and get him the delegates he'll need for the convention. COOPER: And (UNINTELLIGIBLE) Carol Moseley Braun, it's good to talk to you. Appreciate you joining us tonight. Thanks.
BRAUN: Thank you.
COOPER: Well, clearly, the Dean machine doesn't -- does not like the powerhouse -- it doesn't look like at least the powerhouse it did a few weeks ago. What do the changes mean for his young supporter whose have been mobilized and so determined to win?
Jason Bellini got inside the campaign, and that's this edition of "raw Politics."
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: When I say president, you say Dean!
President!
CROWD: Dean!
UNIDENTIFIED MALE: President!
CROWD: Dean!
JASON BELLINI, CNN CORRESPONDENT (voice-over): I met Ray Codere (ph) last Thursday outside the presidential debate. He's a 22-year- old from Vermont.
UNIDENTIFIED MALE: I think we're going to come in first on primary night. We organize, I've spoken, our base is not eroded. We are going to pull through.
BELLINI: On primary night, Howard Dean came in second, trailing John Kerry by a wide margin.
UNIDENTIFIED MALE: He's going to be president one day. (UNINTELLIGIBLE).
BELLINI (on camera): The other day you said he was going to come in first, he didn't.
UNIDENTIFIED MALE: We didn't come in first, but you know what, we won.
BELLINI (voice-over): Ray seems to have a broader definition of what winning is. Winning, being the act of going on itself.
UNIDENTIFIED MALE: We're taking it everywhere. We're taking to Iowa, and to North Dakota, to South Dakota, to Arizona, to New Mexico. It is not about Howard Dean, it is about all of us. There's something in the air. More than any other time that I can remember I think we really need change. We're going in a bad direction. We're going in a really, really bad direction.
BELLINI: The Dean mantra, you have the power, is being put to the test.
Can that power defeat disillusion?
UNIDENTIFIED MALE: If Howard doesn't make it, they will be upset, but they also have had that experience. I don't think you're going to see this stop in any sense whatsoever.
Today we're here, and tomorrow we're going to be in the White House.
BELLINI: Jason Bellini, CNN, Manchester.
(END VIDEOTAPE)
COOPER: The disparity between what President Bush told Americans before the war Iraq and what's now being found in Iraq already had the makings of a political crisis. But with former chief weapons inspector David Kay saying he doesn't think Iraq had WMDs and that U.S. intelligence was faulty, the question is will this mid-week crisis become a drawn-out crisis of confidence?
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We know from years of intelligence, not only our own intelligence services, but other intelligence gathering organizations, that he had weapons. After all, he used them.
COOPER (voice-over): That was President Bush yesterday. But let's remember, it wasn't Saddam Hussein's use of WMDs in 1988 that led America to war. It was the claim that he still had them in 2003. Now, David Kay says, he doesn't think Saddam did, does President Bush?
Over the last year, his assessment of the Iraqi threat has changed. Last January, he said Iraq had...
BUSH: ...assembling the world's most dangerous weapons.
COOPER: By June it was...
BUSH: A weapons program.
COOPER: Last week it was this...
BUSH: ...dozens of weapons of mass destruction related program activities.
COOPER: The change in wording has some Americans looking for answers. Was intelligence misread, ignored, misused. Yesterday, Mr. Bush had plenty of replies, but few answers.
QUESTION: Are you still confident that weapons of mass destruction will be found in Iraq?
BUSH: Let me first compliment Dr. Kay for his work.
COOPER: That's not an answer. Let's fast forward.
BUSH: Saddam Hussein was a gathering threat.
COOPER: Nope.
BUSH: The world is a better place without Saddam Hussein.
COOPER: Not yet.
BUSH: Want to call in the Polish press?
COOPER: No answer on whether the president is still confident WMDs will be found, and no surprise if Democrats use this for political gain.
Will this midweek crisis go beyond partisan politics? Consider this, if Iraq didn't have WMDs, American credibility around the world may suffer. If Iraq did have WMDs and Saddam really was chummy with al Qaeda, where are those weapons right now?
(END VIDEOTAPE)
COOPER: We, want to hear from you on this. Today's "Buzz" question is this, "was the war in Iraq worth it, even if no WMD are ever found." Vote now, CNN.com/360. We'll have results at the end of the program.
Martha Stewart on trial, that's coming up. The government's star witness to take the stand. Will the testimony damage Stewart's defense?
Also ahead: babies for rent. That's right, for rent. Used to smuggle drugs. Unbelievable story. Find out how.
Also ahead, Sophia Coppola talks about making history for her nominations for "Lost In Translation."
(COMMERCIAL BREAK)
COOPER: Time for "Justice Served." When Martha Stewart's trial resumes tomorrow after a day after today due to a snow storm, the prosecution's star witness will likely testify. What will happen when Doug Faneuil takes the stand? Well, let's go over it with 360 legal analyst, Kimberly Guilfoyle Newsom. Kimberly, thanks for being with us.
Let's talk about the way the prosecution needs to get out of Doug Faneuil, what they want him to say.
KIMBERLY GUILFOYLE NEWSOM, CNN LEGAL ANALYST: Well, this is going to be classic. It's sort of a whole thing, good versus evil. They're going to portray him as the David that takes down Goliath; big, bad, corporate greed symbolized by Martha Stewart. That this was a man that was trying to keep his job, trying to do the right thing impressing Martha, et cetera, and that's why he behaved the way he did and changed his story. COOPER: They are basically saying that he was pushed by his employer, Peter Bacanovich (ph), who is also on trial with Martha Stewart, to lie.
NEWSOM: Right. And when you think about it, a young guy, 26 years old, trying to keep his job running with the big dogs essentially here, dealing with really big, impressive clients worth a lot of money, he's following order, he was the little soldier, that the big bad wolf here is going to be Bacanovich (ph) and Stewart who should have known better.
NEWSOM: But now the defense is going to paint him -- they are already painting him as inexperienced, over his head, didn't know what he was doing.
NEWSOM: Yes. That he was fixated with Martha. That he just went ahead and went through this whole thing. That he's not to be trusted. He's lied before. He told one story, now he's telling another. He's not to be trusted.
COOPER: Which one do you think is going to play well?
NEWSOM: At the end of the day, it's going to depend on how he comes off on the stand. Maybe, perhaps, women on the jury, there are more, there are eight women on this jury, might feel sympathetic towards him, because he was trying to do the right thing. He may remained them of their sons, or something like that. And they would say, hey, there's a guy who tried to do the right thing and got caught up in vicious web of lies by deceit by people who were much more sophisticated than he.
COOPER: Now, they're talking about lying. The prosecution is saying, Martha Stewart is lying when she said them that she had no recollection of the phone call of making the trade. The defense says this was just an understandable memory lapse.
NEWSOM: Sure. She's a woman who runs a billion dollar company. She's incredibly busy, she's flying from one place to the next. This is just such a small transaction that amounted. to her, to nothing. Whether or not the jurors are going buy that is another story. Keep in mind she's highly intelligent, very successful, and has market experience herself. It might be a tough one to swallow.
COOPER: All right. Kimberly Guilfoyle Newsom, we'll be watching. Tomorrow is the testimony, so we'll see. Thanks.
NEWSOM: Thank you.
COOPER: Well, more "Justice Served" now. The final sentence was handed down in a case you're just not going to believe. It involves an international drug smuggling ring so brazen, that babies were used as decoys. And there's even more, some of the babies were rented from parents who were poor and often addicted to drugs themselves. CNN's Jeff Flock has the story.
(BEGIN VIDEOTAPE) JEFF FLOCK, CNN CORRESPONDENT (voice-over): Faces of convicted drug couriers. This one took her own baby as a decoy. This one rented a baby and put drugs inside baby formula cans.
ELAINE AUSTIN, CONVICTED DRUG COURIER: I wasn't even thinking about the consequences. It was just making money.
FLOCK: These parents knew what they were getting into?
SCOTT LEVINE, PROSECUTOR: Absolutely.
FLOCK: Scott Levine prosecuted more than 50 people in the drug smuggling ring which unraveled with an airport customs agent in Atlanta.
LEVINE: He opens the bag and he finds these cans. These exact cans.
FLOCK: Baby formula, but something didn't seem right.
LEVINE: The first thing he notices is, they don't weigh the same.
FLOCK: When he looked inside...
LEVINE: The infant formula was replaced by these heroin pellets right here.
FLOCK: That's heroin?
LEVINE: It is.
FLOCK: Courier, Donna Washington was arrested. A few days later in London, Katrina Martin was arrested too, same M.O. In all, authorities say, 22 babies took 45 trips and they all led back to a woman named Selena Johnson in a poor section in Chicago.
(on camera): This is the blighted block in Chicago's Inglewood neighborhood that Selena Johnson controlled, recruiting couriers among the poor women that lived here, finding people desperate enough to rent their babies and ultimately selling crack cocaine out of her house.
How many were there?
DARLING: A lot.
FLOCK (voice-over): Customs agent Pete Darling shows me the book he used to I.D. the couriers, including Erica Howard who gets out of a Salvation Army halfway house this week.
ERICA HOWARD, DRUG COURIER: I'm very remorseful. I'm sorry I involved my son. I'm sorry that I put myself in danger.
FLOCK: Not everyone was. Darling says when on of the other mothers was arrest and they asked what to do with the baby? DARLING: Her reply was, I really don't care what you do with the baby.
FLOCK: None were harmed. Federal agents say it was a miracle. Jeff Flock in Chicago.
(END VIDEOTAPE)
COOPER: It is hard to believe.
Well, she's the first American woman ever nominated as best director. We're going to talk to Sofia Coppola about making "Lost In Translation," what she got from Bill Murray, her dad and Japan. That's coming up.
Also tonight, "Swept Away" lands Madonna in court. Not because it stunk so bad, we're going to tell you why in "The Current". We'll be right back.
(COMMERCIAL BREAK)
COOPER: Time to check on tonight's "Current." What's going on in the world of the ridiculous. An actor, a singer, and songwriter is going to court in May fighting with Madonna and her husband over credit for their movie "Swept Away." In a stunning legal move, each party is claiming credit belongs to them not the other party.
With Barbara Walters announcing her departure from "20/20," speculation is rampant about her replacement but so far, ABC is not saying who it might be.
Cleveland Indians' minor league pitcher Kazuhito Tadano says that he's sorry he appeared in a gay porn video three years ago and says that he is not gay. At press time, there was no comment from the catcher.
Fox is launching a new reality show about little people. 12 little women will try to win the heart of a 4 to 5 foot bachelor. And all of them will search desperately for their dignity.
"Lost in Translation" Sofia Coppola hasn't won an Academy Award yet but she has earned a place in history as the first American woman to be nominated for best director. Imagine that. Shortly after she received the nomination yesterday, I talked with Ms. Coppola about her film "Lost in Translation" as well as with producer Ross Katz. I asked her what it felt like to have this distinction.
(BEGIN VIDEOTAPE)
SOFIA COPPOLA, DIRECTOR, "LOST IN TRANSLATION" This morning was so exciting but it's really hard to believe it's true so I'm really happy to be with the other nominees.
COOPER: In making this movie, Bill Murray has gotten so much attention for the film. I understand he was very difficult to cast. What was it like trying to actually get him to be in the picture? COPPOLA: He's just elusive, Bill Murray and not in touch with everyone. He kind of has his...
COOPER: Or anyone.
COPPOLA: He has his real life separate from his work life. It was hard to track him down.
COOPER: I thought you guys were big Hollywood hot-shots. You can't just, like, call Bill Murray up and say, please be in the picture? You've got to, like, woo them?
ROSS KATZ, PRODUCER, "LOST IN TRANSLATION": Even if we were big Hollywood hot-shots, that's kind of the great thing about Bill. He does keep his work life very separate from his home life. He does a lot of other things other than working. To say he's elusive is an understatement.
Sofia said she wasn't going to make the movie unless he was in it so she literally wrote him letters, sent him photographs, and called everyone he may have ever been in contact with to say, have you seen Bill or spoken to Bill in order to get him there. He did get the messages. Thankfully, he read Sofia's beautiful script...
COPPOLA: Thankfully he wasn't scared of me by the time...
KATZ: Yes. You're like, who's this woman coming after me?
COOPER: I'm glad he didn't think you were a stalker or anything, Sofia. What was it about Bill Murray that made him right for the role?
COPPOLA: I just always loved Bill Murray and he has such a unique mixture of being hysterically funny and then so heartfelt and sincere and soulful. So the part really called for both those things. I just wanted to see Bill Murray in Japan in a Kimono. He's just so loveable.
COOPER: When you got the Golden Globe for best screen play you thanked your father, you called him a great screenwriting teacher. What did he teach you? What did you learn from him?
COPPOLA: Ever since I was really young he always talked about screenwriting and filmmaking and was always offering his -- what he had learned.
COOPER: The film, Ross, has gotten just amazing reviews around the world. There has been some criticism of late. Some have sort of said it was racist in some ways, that the depiction of Japanese people was sort of one dimensional. When you hear that, your response?
KATZ: My response to that is I think that -- thankfully an awful lot of people agree -- that Sofia has crafted this incredibly beautiful, very elegant story about connection and what it feels like to be in a place where you can't sleep, you don't speak the language. We've shown the film in Japan to a Japanese audience. The response was great.
COOPER: I wish you congratulations and I wish you a lot of luck ahead winning the Academy Award. Ross Katz and Sofia Coppola, thanks very much.
(END VIDEOTAPE)
COOPER: Mel Gibson has plans for his new movie. We're going to take the merchandising of "The Passion of the Christ" to the "Nth Degree." Coming up.
Plus tomorrow, our series on gambling continues with a look at how the government is trying to boost revenues by encouraging gambling in lotteries and casinos.
But first, today's "Buzz." Was the war in Iraq worth it even if no WMD are very found? What do you think? Vote now. CNN.com/360. Results when we get back.
(COMMERCIAL BREAK)
COOPER: Time for "The Buzz." We asked you, "was the war in Iraq worth it even if no WMD are ever found?" More than 34,000 of you have voted. 43 percent said yes. 57 percent said no. Not a scientific poll. It is your buzz. Thanks.
Tonight, taking "Passion" to the "Nth Degree." A spokesman for Mel Gibson says Gibson will roll out a whole line of products tied to his new film, "The Passion of the Christ." The spokesman says every big movie does this and Gibson would be foolish not to take advantage of the merchandising of the Christ.
The movie has already drawn controversy for suggesting that the pope gave it a big (UNINTELLIGIBLE). Way (UNINTELLIGIBLE). Well if there is any controversy about the licensing, consider a rough translation from Mark Chapter 8 which reads "for what shall it profit a man if he shall gain the world but lose his own merchandising rights?"
Gibson is already selling fan kits online. And still to come, the official "Passion of the Christ" T-shirt. Really? But will that satisfy our spiritual hunger for material goods? Why not a "Passion" happy meal or a bumper sticker that says, "If you can read Aramaic, you're too close." The possibilities are infinite.
I'm Anderson Cooper, thanks for watching. Coming up next, "Paula Zahn Now."
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(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST (voice-over): A former weapons inspector testifies. Will his claims shake up the race for president?
New information about Osama bin Laden's whereabouts. Is the U.S. zeroing in?
The Democrats march south. Will Kerry ditch Dean once and for all?
(END VIDEOTAPE)
ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.
COOPER: Good evening. Welcome to 360.
This just in to CNN: a major shakeup in the Howard Dean campaign. Just one day after a disappointing New Hampshire finish, Dean's campaign manager is out. A former Al Gore operative is in.
We'll have detail in a moment. But first, let's go to our top story.
New clues tonight in the hunt for Osama bin Laden. Intelligence sources tell CNN there is some evidence bin Laden has been in Afghanistan in recent months, back at the place where he began his war of terror on America. You will not see this report anywhere else. An exclusive now from CNN's Mike Boettcher.
(BEGIN VIDEOTAPE)
MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT (voice-over): You've seen the tape, Osama bin Laden visiting a terrorist training camp in Afghanistan to declare war on America. That was five years ago. But now CNN has learned from coalition intelligence sources that bin Laden may have returned at some point to the same area, near the city of Khost in eastern Afghanistan.
Bin Laden's biographer, Paksitani journalist Hamid Mir, has been hearing similar reports from Arabs he met late last year in Afghanistan.
HAMID MIR, BIN LADEN BIOGRAPHER: Those Arabs told me he's roaming between southern Afghanistan and eastern Afghanistan.
BOETTCHER: The best intelligence still places bin Laden somewhere along the Afghanistan-Pakistan border, probably in the Pakistani tribal area of southern Waziristan. Hamid Mir, for one, wonders just how good that information is.
MIR: ... I think that Afghanistan is still a very suitable place for bin Laden because 90 percent of the country is not under the control of Karzai.
BOETTCHER: Proof that neither African President Karzai nor the U.S. control the country, says Mir, is this tape from Osama bin Laden that was released last September. Mir believes it was shot in the spring of 2003, near the eastern Afghanistan city of Gardez (ph), a sign that bin Laden has, at the very least, been on the move.
(END VIDEOTAPE)
BOETTCHER: Now, this news comes as U.S. military officials confirm there will be a spring offensive in Afghanistan to round up surviving members of the Taliban and al Qaeda and to go after bin Laden. And, as well, the top U.S. commander in Afghanistan is promising that bin Laden will be caught before the end of the year -- Anderson.
COOPER: Strong words there, Mike. Let's talk about this. You say there's going to be this offensive in Afghanistan. Let's talk about what's going on in Pakistan in these areas not under government control. How active is the U.S. and maybe Pakistan secret intelligence in those areas?
BOETTCHER: That is one of the best-kept secrets, how active the U.S. is there. And no one will confirm this on the record, but you go into the region there, and there is a lot of talk about American operations along that border.
Now, one of the grave concerns and why this is being sped up are the two assassination attempts against Musharraf. They are afraid that Musharraf might get killed. And they're going to get more cooperation from Musharraf, the president of Pakistan, than they would from his successor if he does not survive.
COOPER: It's a fascinating report. Mike Boettcher, thanks very much for the exclusive. Appreciate it.
Now to the hunt for weapons on Iraq. On Capitol Hill today, blunt feedback from the man who, until very recently, led the WMD search. The latest now from CNN's national security correspondent, David Ensor.
(BEGIN VIDEOTAPE)
DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The man the CIA sent to look for weapons of mass destruction in Iraq says the failure to find any reveals weaknesses in America's intelligence agencies. DAVID KAY, FMR. CHIEF WEAPONS INSPECTOR: We need capabilities that we do not have with regard to intelligence. We've had a number of surprises.
SEN. JOHN MCCAIN (R), ARIZONA: Do you believe that we need an independent, outside investigation?
KAY: I generally believe that it's important to acknowledge failure, that it is going to take an outside inquiry, both to do it and give yourself and the American people the confidence that you have done it.
ENSOR: That answer pleased McCain and Senate Democrats who are pushing for an outside inquiry into intelligence shortcomings. It did not please the Senate Intelligence chairman whose committee is finishing up its own report.
UNIDENTIFIED MALE: I personally take some umbrage at people who, for one reason or another, think we need to have an outside inquiry before our inquiry is even complete.
ENSOR: Though Kay has created problems for President Bush by saying he expects no weapons to be found in Iraq, Democrats are not happy that he blames the intelligence community, not the White House, and repeatedly denied there was any political pressure to skew the findings on Iraq.
SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Many of us feel that the evidence so far leads only to one conclusion, that what has happened was more than a failure of intelligence. It was a result of manipulation of the intelligence to justify a decision to go to war.
(END VIDEOTAPE)
ENSOR: Kay's explosive comments since leaving the CIA are providing ammunition for all sides in this political year. Irritated intelligence officials argue that Kay's conclusions about the lack of weapons in Iraq are premature. The search is still on, they say. And one official argued that some of his comments went further than his knowledge -- Anderson.
COOPER: All right. David Ensor, thanks very much for that from Washington.
On to politics now, and a major shake-up, as we mentioned, just hours ago in the Howard Dean campaign. Word some staffers even may be facing pay cuts.
For all the details, we go live to Burlington, Vermont and CNN's senior political correspondent, Candy Crowley -- Candy.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Anderson, here's what we know. In joint statements released separately but at the same time, Governor Dean and Joe Trippi, his campaign manager, confirm what we've been reporting. And that is that Roy Neel, who has been the campaign's sort of Washington insider, will be taking over the campaign. Neel being a former Gore staffer. And that Joe Trippi will be leaving, by his his choice, Trippi says in his notice.
He also says pointedly that he -- out to his supporters, and to Dean supporters, saying he may be leaving the campaign, but he is not leaving the cause. And he urges those that he's been communicating daily over e-mail to stay with the cause.
Now, we are told that this all came down in a meeting about noon today between the governor and Trippi and others about 3:00. We asked him about the possibility of pending changes. Here's what he said.
(BEGIN VIDEO CLIP)
HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: There's not going to be changes to my staff today.
UNIDENTIFIED MALE: Are there going to be any changes in coming days?
DEAN: I'm not asking anybody to leave. There may be some additions, but nobody is leaving. At least I hope they're not leaving.
UNIDENTIFIED FEMALE: What about Roy Neel?
(END VIDEO CLIP)
CROWLEY: As can you see, high tension times here in the Dean campaign, as it struggles not just about strategy, but also an internal struggle about message. There were those who wanted to go and stick with the anti-lobbyist, anti-special interests, others who wanted to go for the more traditional message of jobs and the economy. So big changes tonight, Anderson, here in Burlington.
COOPER: Big changes, indeed. We're going to have more on this later tonight. Candy Crowley, thanks very much from Burlington.
Coming up, we're going to talk to former presidential hopeful and now Dean supporter, Carol Moseley Braun, all about the shake-up. That's coming up in just a bit.
For the new front-runner today, it is onward and westward for presidential hopeful John Kerry after winning the New Hampshire primary. Kerry is on the move. He is planning to hit each of the five states, holding primaries next Tuesday, as well as the two that will hold caucuses.
Right now, Kerry is in St. Louis, Missouri. Our Kelly Wallace is there.
(BEGIN VIDEOTAPE)
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Before leaving Boston, the undisputed front-runner played for the cameras and predicts a tough race ahead.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I expect to compete with the same underdog mentality, with the same quality of every vote counts. I'm going to fight for every vote.
WALLACE: The senator from Massachusetts must now prove he can score in the South, the West, and other parts of the heartland, with seven states holding contests Tuesday. He chose to fly first to Missouri, next week's biggest delegate prize, and a state now up for grabs with hometown Congressman Dick Gephardt out of the race.
KERRY: This is the Show-Me State. And we're here to show George Bush the door.
WALLACE: Kerry's campaign announced the senator would be getting the highly coveted backing of South Carolina Congressman James Clyburn, the state's most popular African-American lawmaker.
KERRY: I'm thrilled to have Congressman Clyburn's endorsement.
WALLACE: But the campaign seems to be a step ahead of Clyburn, who refused to confirm who he was endorsing, although sources close to Clyburn and the campaign say he will make it official Thursday.
UNIDENTIFIED MALE: When the bullets began to hit the side of the boat, boom, pow, pow, pow, we find out that John Kerry can lead.
WALLACE: Kerry's advisors say they are now running ads in all the February 3 states. The newest one playing in South Carolina is designed to appeal to the state's large number of veterans.
(END VIDEOTAPE)
WALLACE: And one of the next big challenges ahead for John Kerry is how he responds to attacks which are likely to come from some of his opponents and from the Republican Party. This after his decisive and back-to-back victories in Iowa and last night in New Hampshire -- Anderson.
COOPER: All right. Kelly Wallace on the move. Thanks very much, Kelly.
Let's put John Kerry's New Hampshire win in perspective for a moment. Since 1972, the only candidate to win both the Iowa caucuses and New Hampshire primary and failed to win his party's nomination was this man, Edmund Muskie. But winning Iowa and New Hampshire by no means guarantees the White House, of course. The only candidate to win both the Iowa caucuses and New Hampshire primary and go on to take the party's nomination and then be elected president is Jimmy Carter in 1976.
We're following a number of developing stories right now for you "Cross Country." Let's take a look.
Just in from Miami, Florida: gay adoption ban stays. An appeals court has rejected a challenge to Florida's complete ban on adoption by gay couples. Four gay foster parents have filed suit to overturn it. But the court says it is not a constitutional one and should be settled by the state legislature. Florida is the only state in the country with such a ban. New York City: winter wonderland. An overnight storm dumped six to eight inches in the city and in neighboring states. The storm reeked havoc along the East Coast, and nearly 100,000 people are still without power today. But like some political campaigns, the storm just couldn't keep its momentum. It sputtered over New England, dropping a only a few inches of snow instead of the predicted eight to 14 inches.
Anchorage, Alaska: Exxon's hefty bill. A federal judge has ordered Exxon Mobil to pay $6.75 billion -- yes, that's billion -- in punitive damages and interest. The money goes to thousands of fishermen and others affected when the Exxon Valdez spilled 11 million gallons of oil into Prince William Sound back in '89.
Atlanta, Georgia: R&D singer arrested. Faith Evans and her husband-manager, Todd Russa (ph), are charged with possession of cocaine and marijuana. Traffic officers allegedly found the drugs last night after they pulled over the couple's vehicle for an improper license plate.
And in Aiken, South Carolina: James Brown in jail. Quite a mug shot, that. The 70-year-old godfather of soul was arrested today on domestic violence charges.
Brown has a history of legal problems, of course. He was arrested on drug-related charges in '88 and '98 and served a two-and- a-half year prison term.
That's a look at stories "Cross Country" tonight.
Babies for rent in America. An international drug ring using children as cover. It sounds ridiculous, but it's true. Find out how a Custom's agent cracked the case.
And Martha Stewart on trial. A key witness about to take the stand. A sneak preview of his testimony.
Also, have you noticed a poker craze sweeping the country? We'll get tips from one of the world's top players as part of our weeklong series, "Gambling Nation."
Before all that, let's take a look "Inside the Box" at the top stories on tonight's network newscasts.
(COMMERCIAL BREAK)
COOPER: Well, the key prosecution witness against Martha Stewart is expected to testify tomorrow and may say he was ordered to give her a secret stock trading tip. Stewart is certainly the star of her own courtroom drama, but there is a supporting cast playing vital roles in how this story will end.
CNN's Chris Huntington reports.
(BEGIN VIDEOTAPE) CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Martha Stewart's future and freedom may hang on the credibility of Douglas Faneuil, former assistant to Stewart's co-defendant and former stockbroker, Peter Bacanovic. Faneuil executed Stewart's fateful sell order over the phone in December of 2001. And now he's the government's key witness. He says he lied to back up Bacanovic and Stewart in return for an extra vacation and plane tickets.
HOWARD WILSON, FMR. FEDERAL PROSECUTOR: He becomes an incredibly critical witness who tells the entire story, and he's pled guilty to it.
HUNTINGTON: The defense wants to portray Faneuil, who is 28, as a young mixed up liberal arts grad out of his depth in the brokerage business. Bacanovic, who had ambitiously parlayed social connection into a lucrative brokerage business, needed an assistant who could work with a rich and famous clientele that included Stewart and Sam Waksal. Federal prosecutors will argue the hallmark of that world was mixing business with pleasure.
UNIDENTIFIED MALE: I wouldn't be surprised if the government made an issue of this and said, for example, that stock tips and information about companies was passed around like canapes at the party.
HUNTINGTON: But Bacanovic's friends and former colleagues insist he is no social-climbing dilettante, and describe him as savvy, sophisticated and serious about his work.
(on camera): One more key witness for the government is Martha Stewart's long-time friend, Marianna Pastinek (ph), who was traveling with Stewart the day she sold her ImClone shares. Pastinek's (ph) husband also sold ImClone stock on that day. And federal prosecutors say that she will testify that she and Stewart were well aware that they had privileged information.
Chris Huntington, CNN, New York.
(END VIDEOTAPE)
COOPER: We're going to talk more about this case with 360 legal analyst, Kimberly Guilfoyle Newsom in just a bit.
A strange development in the legal fight for R&B singer R. Kelly today. A judge in Chicago is allowing Kelly, who faces child pornography charges, to go to next month's Grammy Awards in Los Angeles. But the judge ordered that Kelly must travel by bus and he can't associate with Michael Jackson, who is charged in a child molestation case as well. No further explanation of the judge's ruling today.
And speaking of Michael Jackson, today a judge denied a request by the father of the alleged victim in the case to be allowed visitation rights. In court documents, the father says he has not seen his son in nearly two years and is worried about the child's physical and mental health. The father pleaded no contest to child cruelty in 2002, as well as spousal abuse back in 2001, and was barred from seeing his children then.
We are tracking a number of developing stories around the globe right now. Let's take a look at the "UpLink."
London: cleared. The inquiry into the suicide weapons expert, David Kelly, exonerates British Prime Minister Tony Blair. Kelly was named as the source of a BBC report that said Blair's government had -- and I quote -- "sexed up" a report on Iraq's WMDs. The inquiry chairman, Lord Brian Hutton (ph), said the government did not act in a dishonorable, underhanded or duplicitous way.
Hutton (ph) did take the BBC to task for its failure to substantiate its reported story. So today, the chairman of the BBC resigned.
Guantanamo Bay, Cuba: ready for release. The U.S. may be about to free nearly two dozen detainees from Gitmo. The U.S. ambassador for war crimes says the prisoners are considered a low security threat. About 660 suspected Taliban and al Qaeda members have been held at the U.S. Navy base since their capture during the war in Afghanistan.
Guangxi Provinc, China: halting the spread of bird flu. They have begun to slaughter poultry on farms in southwestern China. Officials confirm that several ducks found dead on three local farms were infected with the virus.
And that is tonight's "UpLink" for you.
On a pig farm in Canada, a bizarre story. Police say they have found the remains of nine more women who may have been the victims of accused serial killer Robert William Pickton. Pickton is already facing 22 counts of murder. Some 60 women have disappeared from Vancouver's seedy downtown east side over the last 20 years.
Gary Tuchman has the latest.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): The grotesque secrets of a farm in western Canada continue to be revealed.
UNIDENTIFIED MALE: My first thoughts when that door opened was that my wife was going to be devastated.
TUCHMAN: Terry Hughes (ph) was at the door this week when police told him the DNA of his wife's sister, Carrie Kosky (ph), had been located. The 31st identification of DNA of a murdered woman at the pig farm of Robert Pickton. Authorities say Kosky (ph) is one of nine women whose remains were recently found at the British Columbia farm.
UNIDENTIFIED FEMALE: The information that we're coming forward with today is new. It's just been developed in the last few weeks.
TUCHMAN: Pickton is currently charged with 15 counts of first degree murder. But the Canadian authorities say they will be adding charges. A total of 65 women have been reported as missing from the grimy downtown east side neighborhood of Vancouver. Many were drug addicts who worked as prostitutes. Pickton was arrested almost two years ago.
UNIDENTIFIED MALE: Robert William Pickton, age 52 years, of (UNINTELLIGIBLE), was charged today with two counts of first degree murder.
TUCHMAN: But now those two counts have grown to 15 and are expected to be revised upward again soon. Meanwhile, the painstaking searching at the pig farm continues 23 months after the arrest.
UNIDENTIFIED FEMALE: Believe it or not, we're still somewhat in the early stages of our investigation.
TUCHMAN: Pickton's trial is expected to begin by the end of 2004.
Gary Tuchman, CNN.
(END VIDEOTAPE)
COOPER: Just an unbelievable case.
So why is poker suddenly all the rage? Have you noticed this? You're going to hear from one of the world's top poker players coming up. Part of our week-long series, "Gambling Nation."
Also tonight, late word of a major shake-up in Howard Dean's campaign. What's behind all the changes? We're going to ask one-time Dean Rival, now Dean ambassador, Carol Moseley Braun. She's going to join us live.
And a little later, no WMD in Iraq. And now damage control for the Bush administration. That is our "Midweek Crisis."
And it gets us to today's "Buzz." Was the war in Iraq worth it even if no WMD are ever found? What do you think? Vote now, cnn.com/360. We'll have the results at the end of the program.
(COMMERCIAL BREAK)
COOPER: Ah, poker. Coming up, you're going to hear from the poker king who helped train Matt Damon for that roll in "Rounders."
As the Super Bowl approaches, many Americans are placing wagers, big and small, on Sunday's big game. Gambling, of course, has become an enormous industry in America. And this week, it's the focus of a special series. Tonight, poker, an old game that has suddenly taken on a new life.
(BEGIN VIDEOTAPE)
COOPER (voice-over): If you haven't noticed lately, poker has gone prime time. On TV, kitchen tables and casino floors, it suddenly seems like everyone is learning how to ante, call, draw, bluff and fold. Since the debut of "Celebrity Poker Showdown," the World Poker Tour and the World Series of Poker, some casinos have reported 30 percent increases in poker playing.
That suits poker champs like Jennifer Harman just fine. For Harman, poker is a full-time job. And she knows a rookie when she sees one.
JENNIFER HARMAN, PROFESSIONAL POKER PLAYER: Within 15 minutes I think I know how everybody plays. Actually, some people actually play how they look. And you know that right when they sit down. You know, some people look goofy, you know they're going to play goofy.
UNIDENTIFIED MALE: She calls it (UNINTELLIGIBLE). Look at Phil (ph).
COOPER: Harman earns her living playing poker. She's won as much as $300,000, lost that much as well. She plays five to seven hours at a stretch several nights a week at a casino near her Las Vegas home.
HARMAN: It's mathematical, it's psychological. Being able to get into somebody's head, being able to play their hand before they even know how to play it. And when I'm right, it's the biggest thrill in the world.
COOPER: And Harman's words of wisdom to better your own poker game, well, it turns out it's not different from mom's advice.
HARMAN: If you win or lose, it doesn't matter. It's how you play the game. If you play well and you go home a loser, it's OK, because you know that eventually the money will come.
(END VIDEOTAPE)
COOPER: That's the hope anyway, I guess. One of the top male poker players is nine-time world champion Phil Hellmuth. He trained Matt Damon for that role in "Rounders." He's also written the book, "Play Poker Like the Pros." He is best known, perhaps, for his cocky style of playing the game.
We spoke today. I started off by asking him about his bad-boy image.
(BEGIN VIDEOTAPE)
PHIL HELLMUTH, PROFESSIONAL POKER PLAYER: For the five minutes during each day that I get upset, and not necessarily shouting, of course the cameras are there to catch that. So that kind of keeps my representation as the poker brat moving forward.
COOPER: But is that part of your strategy? I mean, does it help at all in playing the game?
HELLMUTH: No way. It doesn't help me at all. To get emotionally off keel like that is not good for me. It doesn't help me, and it's not intentional at all. It's just frustration, you know? Sometimes you just play so beautifully for five, 10 hours, or two or three days, and then someone does something that's just such a bad play and they end up taking you out. And it's just my own frustration. I should be handling it better than I do.
COOPER: You know, you talk about playing beautifully. What is it about poker that really appeals to you?
HELLMUTH: I just love playing poker. Especially no-limit hold 'em. I mean, you have to look at the people across the table from you. And you have to decide, do they have it or don't they have it. And then based on that, you have to make your move.
And I just love it when I'm reading people on the other side of the table. I know he has this. I know he has that. I know he has this. And then I can move on with nothing sometimes or...
COOPER: And reading people is a key part of doing well in poker, yes?
HELLMUTH: Absolutely. I mean, I like to tell people, if you read people well, you can't lose in no-limit hold 'em.
COOPER: What are some other tips you give for armchair poker players out there? I know you don't want to give too many tips because you might be playing these people one day. But what are some tips for people at home?
HELLMUTH: I talk about patience as being a huge element that the American public just doesn't get or understand until you closely examine the game. You realize that, hey listen, this game, Texas hold 'em, is set up, and so are all of the professional poker games.
They're set up to play a very patient strategy. And if you deviate from that, then you are in general going to lose. So number one tip for the American public, patience.
COOPER: All right. You play pretty high stakes. What's the most you've ever won?
HELLMUTH: Well, I won $755,000 when I won the World Series of Poker in 1989.
COOPER: All right. Not bad. I've got to ask you, though, what's the most you've ever lost?
HELLMUTH: Oh, well, in LA one day I lost $135,000. That wasn't much fun.
COOPER: And yet, you come right back at it. I guess you think your skill is going to carry you through?
HELLMUTH: You have to get back on the horse. I mean, what are you going to do? I mean, I'm a professional poker player. There's a lot of skill involved in the game. And you're going to have bad days. And I'm the kind of person, I think, that's always looking forward, always thinking about a bright future.
COOPER: Well, it is a fascinating topic. Phil Hellmuth, I appreciate talking to you. Thanks for joining us.
HELLMUTH: Thank you very much, Anderson.
COOPER: Here's a quick fast fact for you. The World Series of Poker has one of the largest pay-outs of any sport. Last year, the $2.5 million first place prize, which is the largest purse in any poker competition, went to 27-year-old amateur poker player Chris Moneymaker (ph). And yes, that is his real name.
We'll continue our series, "Gambling Nation," tomorrow, with the look of the fight against the so-called casino invasion. You know, many consider casinos a savior for states in the red, but who's actually getting rich? We'll look at that.
And on Friday, sports betting addicts. A growing problem on college campuses. You'll also meet a mob turncoat who says he fixed games. Now he's teaching others about what he says are the dangers of gambling.
(BEGIN VIDEOTAPE)
COOPER (voice-over): For Kerry, Dean and the rest, what's it going to take to capture the South?
Martha Stewart on trial. The government's star witness testifies tomorrow. How much damage can he do?
And director Sophia Coppola on her historic Oscar nomination.
360 continues.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COOPER: In the next half hour on "360" no WMD in Iraq and a president on the defensive.
Plus, a major shake-up in Howard Dean's campaign. Joe Trippi, campaign manager is out. I'll ask former candidate and Dean supporter Carol Moseley Braun what it all may mean. In a moment she joins us live.
And taking the stand against Martha Stewart. Tomorrow the government's star witness, how damaging will his testimony be?
First, let's check the top stories in "The Reset."
On Capitol Hill, the former chief weapons inspector in Iraq says he was probably all wrong in concluding Saddam Hussein had weapons of mass destruction when he was ousted. David Kay told Senate Arms Services Committee today there was a fundamental failure of intelligence.
Elsewhere in Washington the government has a new weapon against attacks on computer-based networks. You can sign up with a national cyber alert system for e-mail alerts or go to the Web site to learn about or report new threats.
In Buckeye, Arizona, day 11 in one of the longest prison hostage cases in history. Negotiators hope the two inmates still holding a female prison guard are becoming demoralized enough to release her soon. They freed her male co-worker Saturday.
In Washington the Federal Reserve is keeping interest rates at a 45-year low. But in a statement today the Fed hinted it might raise rates later in the year. That spoofed the stock market, it reacted badly.
That's a look at tonight's "Reset."
On to politics now. The day after his second place finish in the New Hampshire primary, former Governor Howard Dean shook up his campaign. A few hours ago we learned that Joe Trippi who just a month ago was credited to bringing Dean to front-runner status is no longer the campaign manager.
I'm joined from Chicago by former presidential candidate Carol Moseley Braun. She dropped out of the race two weeks ago and now is working for the Dean campaign. Ambassador, good to see you again, thanks for being with us.
CAROL MOSELEY BRAUN, FORMER PRESIDENTIAL CANDIDATE: Thanks Anderson, but I'm a volunteer, so you're clear.
COOPER: OK, well, you are receiving some moneys for travel purposes?
BRAUN: No. Well, no. When I travel, they pay for it, but I haven't -- that's been once.
COOPER: I'm sorry to mention this, but -- I don't want to get hung up on it, but I read $20,000 a month...
BRAUN: I know, it was wrong. It is a rumor I've had to back all over the country. It was not true. And whoever said it has retracted it. The person who said has not retracted it.
COOPER: All right. Good. Glad we got that out there.
BRAUN: I am, too.
COOPER: What do you make of Joe Trippi stepping down?
BRAUN: Where I come from there's an old expression about having tree shakers and jelly makers. The fact of the matter is Joe Trippi made this campaign happen. In the beginning he shook the tree. He got the country to focus on the platform of Howard Dean. He brought the dean candidacy to life. And now it's time for a different style for somebody to focus on the mechanics of making the campaign work on a state by state bases and getting the delegates sufficient for Governor Dean to get the nomination. So, Joe is still going to be around. He's going to be very much a part of this effort in other ways. But he just will not be involved with making the jelly, if you will.
COOPER: Clearly though it is not a good development. I mean, it is a sign that there is something going wrong, to have this man who, just in December, "The New York Times" was calling him the political consultant of the season. He was being praised for raising so much money on the Internet. Now, he's out, and your bringing in basicly A Washington insider from Al Gore's staff.
BRAUN: Well, what you've -- what they brought in is someone who knows the mechanics of running a national campaign. And that's not to say Joe Trippi does not. He does. Again, it is a different style, a different role. But I believe that it's going to be a harmonious transition. I believe it's just going to help build the campaign and build the effort for Governor Dean. Joe, again, gone but not forgotten. The fact of the matter is this campaign owes a great deal to Joe Trippi. And I personally just love him and think he's done a fabulous job and will continue to. So, I think it's going to be OK. I don't think it bodes ill for the campaign. If anything, it just suggest as maturation, a changing of style at this point.
COOPER: A lot of primaries/caucuses coming down the pipe this Tuesday, south and the Midwest, very important races. At some point Howard Dean has to come into first place in order to continue in this race.
Does he need to finish first, for instance, in South Carolina on Tuesday in order to continue?
BRAUN: No, I don't think so. Remember, he's got more delegates lined up than any of the other candidates at this point. It is a delicate race and a marathon, not a sprint. And so, in addition to South Carolina you've got Arizona, Oklahoma, the states in the West. This is the first time this campaign will turn to the South and to the West in this campaign season. I believe Governor Dean will do very well there as a competitor.
COOPER: Your advice to Governor Dean, as he approaches South Carolina, as he approaches some these other states, what does he have to do?
BRAUN: I hesitate to give advice. I think the best thing he could do is to stay on his message. He was the first candidate to come out and say the war in Iraq was a bad idea. He was the first candidate to come out and say budget deficits were a bad idea. He was the first candidate to talk about unfunded mandates being a bad idea. He has the courage to stand up and speak to the issues and ways that make sense to the American people. And I believe that that message in the end will carry him through and get him the delegates he'll need for the convention. COOPER: And (UNINTELLIGIBLE) Carol Moseley Braun, it's good to talk to you. Appreciate you joining us tonight. Thanks.
BRAUN: Thank you.
COOPER: Well, clearly, the Dean machine doesn't -- does not like the powerhouse -- it doesn't look like at least the powerhouse it did a few weeks ago. What do the changes mean for his young supporter whose have been mobilized and so determined to win?
Jason Bellini got inside the campaign, and that's this edition of "raw Politics."
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: When I say president, you say Dean!
President!
CROWD: Dean!
UNIDENTIFIED MALE: President!
CROWD: Dean!
JASON BELLINI, CNN CORRESPONDENT (voice-over): I met Ray Codere (ph) last Thursday outside the presidential debate. He's a 22-year- old from Vermont.
UNIDENTIFIED MALE: I think we're going to come in first on primary night. We organize, I've spoken, our base is not eroded. We are going to pull through.
BELLINI: On primary night, Howard Dean came in second, trailing John Kerry by a wide margin.
UNIDENTIFIED MALE: He's going to be president one day. (UNINTELLIGIBLE).
BELLINI (on camera): The other day you said he was going to come in first, he didn't.
UNIDENTIFIED MALE: We didn't come in first, but you know what, we won.
BELLINI (voice-over): Ray seems to have a broader definition of what winning is. Winning, being the act of going on itself.
UNIDENTIFIED MALE: We're taking it everywhere. We're taking to Iowa, and to North Dakota, to South Dakota, to Arizona, to New Mexico. It is not about Howard Dean, it is about all of us. There's something in the air. More than any other time that I can remember I think we really need change. We're going in a bad direction. We're going in a really, really bad direction.
BELLINI: The Dean mantra, you have the power, is being put to the test.
Can that power defeat disillusion?
UNIDENTIFIED MALE: If Howard doesn't make it, they will be upset, but they also have had that experience. I don't think you're going to see this stop in any sense whatsoever.
Today we're here, and tomorrow we're going to be in the White House.
BELLINI: Jason Bellini, CNN, Manchester.
(END VIDEOTAPE)
COOPER: The disparity between what President Bush told Americans before the war Iraq and what's now being found in Iraq already had the makings of a political crisis. But with former chief weapons inspector David Kay saying he doesn't think Iraq had WMDs and that U.S. intelligence was faulty, the question is will this mid-week crisis become a drawn-out crisis of confidence?
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We know from years of intelligence, not only our own intelligence services, but other intelligence gathering organizations, that he had weapons. After all, he used them.
COOPER (voice-over): That was President Bush yesterday. But let's remember, it wasn't Saddam Hussein's use of WMDs in 1988 that led America to war. It was the claim that he still had them in 2003. Now, David Kay says, he doesn't think Saddam did, does President Bush?
Over the last year, his assessment of the Iraqi threat has changed. Last January, he said Iraq had...
BUSH: ...assembling the world's most dangerous weapons.
COOPER: By June it was...
BUSH: A weapons program.
COOPER: Last week it was this...
BUSH: ...dozens of weapons of mass destruction related program activities.
COOPER: The change in wording has some Americans looking for answers. Was intelligence misread, ignored, misused. Yesterday, Mr. Bush had plenty of replies, but few answers.
QUESTION: Are you still confident that weapons of mass destruction will be found in Iraq?
BUSH: Let me first compliment Dr. Kay for his work.
COOPER: That's not an answer. Let's fast forward.
BUSH: Saddam Hussein was a gathering threat.
COOPER: Nope.
BUSH: The world is a better place without Saddam Hussein.
COOPER: Not yet.
BUSH: Want to call in the Polish press?
COOPER: No answer on whether the president is still confident WMDs will be found, and no surprise if Democrats use this for political gain.
Will this midweek crisis go beyond partisan politics? Consider this, if Iraq didn't have WMDs, American credibility around the world may suffer. If Iraq did have WMDs and Saddam really was chummy with al Qaeda, where are those weapons right now?
(END VIDEOTAPE)
COOPER: We, want to hear from you on this. Today's "Buzz" question is this, "was the war in Iraq worth it, even if no WMD are ever found." Vote now, CNN.com/360. We'll have results at the end of the program.
Martha Stewart on trial, that's coming up. The government's star witness to take the stand. Will the testimony damage Stewart's defense?
Also ahead: babies for rent. That's right, for rent. Used to smuggle drugs. Unbelievable story. Find out how.
Also ahead, Sophia Coppola talks about making history for her nominations for "Lost In Translation."
(COMMERCIAL BREAK)
COOPER: Time for "Justice Served." When Martha Stewart's trial resumes tomorrow after a day after today due to a snow storm, the prosecution's star witness will likely testify. What will happen when Doug Faneuil takes the stand? Well, let's go over it with 360 legal analyst, Kimberly Guilfoyle Newsom. Kimberly, thanks for being with us.
Let's talk about the way the prosecution needs to get out of Doug Faneuil, what they want him to say.
KIMBERLY GUILFOYLE NEWSOM, CNN LEGAL ANALYST: Well, this is going to be classic. It's sort of a whole thing, good versus evil. They're going to portray him as the David that takes down Goliath; big, bad, corporate greed symbolized by Martha Stewart. That this was a man that was trying to keep his job, trying to do the right thing impressing Martha, et cetera, and that's why he behaved the way he did and changed his story. COOPER: They are basically saying that he was pushed by his employer, Peter Bacanovich (ph), who is also on trial with Martha Stewart, to lie.
NEWSOM: Right. And when you think about it, a young guy, 26 years old, trying to keep his job running with the big dogs essentially here, dealing with really big, impressive clients worth a lot of money, he's following order, he was the little soldier, that the big bad wolf here is going to be Bacanovich (ph) and Stewart who should have known better.
NEWSOM: But now the defense is going to paint him -- they are already painting him as inexperienced, over his head, didn't know what he was doing.
NEWSOM: Yes. That he was fixated with Martha. That he just went ahead and went through this whole thing. That he's not to be trusted. He's lied before. He told one story, now he's telling another. He's not to be trusted.
COOPER: Which one do you think is going to play well?
NEWSOM: At the end of the day, it's going to depend on how he comes off on the stand. Maybe, perhaps, women on the jury, there are more, there are eight women on this jury, might feel sympathetic towards him, because he was trying to do the right thing. He may remained them of their sons, or something like that. And they would say, hey, there's a guy who tried to do the right thing and got caught up in vicious web of lies by deceit by people who were much more sophisticated than he.
COOPER: Now, they're talking about lying. The prosecution is saying, Martha Stewart is lying when she said them that she had no recollection of the phone call of making the trade. The defense says this was just an understandable memory lapse.
NEWSOM: Sure. She's a woman who runs a billion dollar company. She's incredibly busy, she's flying from one place to the next. This is just such a small transaction that amounted. to her, to nothing. Whether or not the jurors are going buy that is another story. Keep in mind she's highly intelligent, very successful, and has market experience herself. It might be a tough one to swallow.
COOPER: All right. Kimberly Guilfoyle Newsom, we'll be watching. Tomorrow is the testimony, so we'll see. Thanks.
NEWSOM: Thank you.
COOPER: Well, more "Justice Served" now. The final sentence was handed down in a case you're just not going to believe. It involves an international drug smuggling ring so brazen, that babies were used as decoys. And there's even more, some of the babies were rented from parents who were poor and often addicted to drugs themselves. CNN's Jeff Flock has the story.
(BEGIN VIDEOTAPE) JEFF FLOCK, CNN CORRESPONDENT (voice-over): Faces of convicted drug couriers. This one took her own baby as a decoy. This one rented a baby and put drugs inside baby formula cans.
ELAINE AUSTIN, CONVICTED DRUG COURIER: I wasn't even thinking about the consequences. It was just making money.
FLOCK: These parents knew what they were getting into?
SCOTT LEVINE, PROSECUTOR: Absolutely.
FLOCK: Scott Levine prosecuted more than 50 people in the drug smuggling ring which unraveled with an airport customs agent in Atlanta.
LEVINE: He opens the bag and he finds these cans. These exact cans.
FLOCK: Baby formula, but something didn't seem right.
LEVINE: The first thing he notices is, they don't weigh the same.
FLOCK: When he looked inside...
LEVINE: The infant formula was replaced by these heroin pellets right here.
FLOCK: That's heroin?
LEVINE: It is.
FLOCK: Courier, Donna Washington was arrested. A few days later in London, Katrina Martin was arrested too, same M.O. In all, authorities say, 22 babies took 45 trips and they all led back to a woman named Selena Johnson in a poor section in Chicago.
(on camera): This is the blighted block in Chicago's Inglewood neighborhood that Selena Johnson controlled, recruiting couriers among the poor women that lived here, finding people desperate enough to rent their babies and ultimately selling crack cocaine out of her house.
How many were there?
DARLING: A lot.
FLOCK (voice-over): Customs agent Pete Darling shows me the book he used to I.D. the couriers, including Erica Howard who gets out of a Salvation Army halfway house this week.
ERICA HOWARD, DRUG COURIER: I'm very remorseful. I'm sorry I involved my son. I'm sorry that I put myself in danger.
FLOCK: Not everyone was. Darling says when on of the other mothers was arrest and they asked what to do with the baby? DARLING: Her reply was, I really don't care what you do with the baby.
FLOCK: None were harmed. Federal agents say it was a miracle. Jeff Flock in Chicago.
(END VIDEOTAPE)
COOPER: It is hard to believe.
Well, she's the first American woman ever nominated as best director. We're going to talk to Sofia Coppola about making "Lost In Translation," what she got from Bill Murray, her dad and Japan. That's coming up.
Also tonight, "Swept Away" lands Madonna in court. Not because it stunk so bad, we're going to tell you why in "The Current". We'll be right back.
(COMMERCIAL BREAK)
COOPER: Time to check on tonight's "Current." What's going on in the world of the ridiculous. An actor, a singer, and songwriter is going to court in May fighting with Madonna and her husband over credit for their movie "Swept Away." In a stunning legal move, each party is claiming credit belongs to them not the other party.
With Barbara Walters announcing her departure from "20/20," speculation is rampant about her replacement but so far, ABC is not saying who it might be.
Cleveland Indians' minor league pitcher Kazuhito Tadano says that he's sorry he appeared in a gay porn video three years ago and says that he is not gay. At press time, there was no comment from the catcher.
Fox is launching a new reality show about little people. 12 little women will try to win the heart of a 4 to 5 foot bachelor. And all of them will search desperately for their dignity.
"Lost in Translation" Sofia Coppola hasn't won an Academy Award yet but she has earned a place in history as the first American woman to be nominated for best director. Imagine that. Shortly after she received the nomination yesterday, I talked with Ms. Coppola about her film "Lost in Translation" as well as with producer Ross Katz. I asked her what it felt like to have this distinction.
(BEGIN VIDEOTAPE)
SOFIA COPPOLA, DIRECTOR, "LOST IN TRANSLATION" This morning was so exciting but it's really hard to believe it's true so I'm really happy to be with the other nominees.
COOPER: In making this movie, Bill Murray has gotten so much attention for the film. I understand he was very difficult to cast. What was it like trying to actually get him to be in the picture? COPPOLA: He's just elusive, Bill Murray and not in touch with everyone. He kind of has his...
COOPER: Or anyone.
COPPOLA: He has his real life separate from his work life. It was hard to track him down.
COOPER: I thought you guys were big Hollywood hot-shots. You can't just, like, call Bill Murray up and say, please be in the picture? You've got to, like, woo them?
ROSS KATZ, PRODUCER, "LOST IN TRANSLATION": Even if we were big Hollywood hot-shots, that's kind of the great thing about Bill. He does keep his work life very separate from his home life. He does a lot of other things other than working. To say he's elusive is an understatement.
Sofia said she wasn't going to make the movie unless he was in it so she literally wrote him letters, sent him photographs, and called everyone he may have ever been in contact with to say, have you seen Bill or spoken to Bill in order to get him there. He did get the messages. Thankfully, he read Sofia's beautiful script...
COPPOLA: Thankfully he wasn't scared of me by the time...
KATZ: Yes. You're like, who's this woman coming after me?
COOPER: I'm glad he didn't think you were a stalker or anything, Sofia. What was it about Bill Murray that made him right for the role?
COPPOLA: I just always loved Bill Murray and he has such a unique mixture of being hysterically funny and then so heartfelt and sincere and soulful. So the part really called for both those things. I just wanted to see Bill Murray in Japan in a Kimono. He's just so loveable.
COOPER: When you got the Golden Globe for best screen play you thanked your father, you called him a great screenwriting teacher. What did he teach you? What did you learn from him?
COPPOLA: Ever since I was really young he always talked about screenwriting and filmmaking and was always offering his -- what he had learned.
COOPER: The film, Ross, has gotten just amazing reviews around the world. There has been some criticism of late. Some have sort of said it was racist in some ways, that the depiction of Japanese people was sort of one dimensional. When you hear that, your response?
KATZ: My response to that is I think that -- thankfully an awful lot of people agree -- that Sofia has crafted this incredibly beautiful, very elegant story about connection and what it feels like to be in a place where you can't sleep, you don't speak the language. We've shown the film in Japan to a Japanese audience. The response was great.
COOPER: I wish you congratulations and I wish you a lot of luck ahead winning the Academy Award. Ross Katz and Sofia Coppola, thanks very much.
(END VIDEOTAPE)
COOPER: Mel Gibson has plans for his new movie. We're going to take the merchandising of "The Passion of the Christ" to the "Nth Degree." Coming up.
Plus tomorrow, our series on gambling continues with a look at how the government is trying to boost revenues by encouraging gambling in lotteries and casinos.
But first, today's "Buzz." Was the war in Iraq worth it even if no WMD are very found? What do you think? Vote now. CNN.com/360. Results when we get back.
(COMMERCIAL BREAK)
COOPER: Time for "The Buzz." We asked you, "was the war in Iraq worth it even if no WMD are ever found?" More than 34,000 of you have voted. 43 percent said yes. 57 percent said no. Not a scientific poll. It is your buzz. Thanks.
Tonight, taking "Passion" to the "Nth Degree." A spokesman for Mel Gibson says Gibson will roll out a whole line of products tied to his new film, "The Passion of the Christ." The spokesman says every big movie does this and Gibson would be foolish not to take advantage of the merchandising of the Christ.
The movie has already drawn controversy for suggesting that the pope gave it a big (UNINTELLIGIBLE). Way (UNINTELLIGIBLE). Well if there is any controversy about the licensing, consider a rough translation from Mark Chapter 8 which reads "for what shall it profit a man if he shall gain the world but lose his own merchandising rights?"
Gibson is already selling fan kits online. And still to come, the official "Passion of the Christ" T-shirt. Really? But will that satisfy our spiritual hunger for material goods? Why not a "Passion" happy meal or a bumper sticker that says, "If you can read Aramaic, you're too close." The possibilities are infinite.
I'm Anderson Cooper, thanks for watching. Coming up next, "Paula Zahn Now."
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