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Anti-Government Protests Continue In Libya; U.N. Security Council Votes in Favor of Sanctions Against Libya; Pro-Union Demonstrations Continue in Wisconsin; Oscar Fashions; Some Signals of Compromise Between Political Parties in Forestalling Government Shutdown; Hollywood Prepares For Academy Awards

Aired February 26, 2011 - 10:00   ET

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

RANDI KAYE, CNN ANCHOR: Good morning.

Protesters are still defying calls for Moammar Gadhafi to end the uprising, and he defies calls from the world to end the violence and step down. The White House and U.N. plan their next moves. We'll have details.

Then, there's that battle between teachers and the governor in Wisconsin. He's not budging. In fact, he's threatening massive lay- offs next week. We're tracking developments as the clock ticks down.

And it's the biggest red carpet walk of them all, the Oscars. What will the nominees be wearing? We'll preview the superstar looks we're likely to see tomorrow night.

From CNN Center this is 'CNN Saturday Morning." It's February 26th. I'm Randi Kaye. Glad you're with us this morning.

President Obama issued an executive order last night placing new restrictions on Libya. The sanctions are intended to keep the Libya government from having any funds administered by American interests. And coming up in just about an hour the United Nations Security Council meets to consider harsh sanctions aim at Colonel Gadhafi's regime. They could impose a travel ban among some other things. We'll get more from the U.N. just a little bit later on in this hour.

Numerous countries are working on getting their citizens out of Libya right now. Several planes and ships have left the country carrying thousands of foreign nationals to safety. That includes a loaded ferry with 183 Americans on board landed in Malta last night. Earlier this morning I spoke with one of the evacuees about her escape from Libya.

(BEGIN VIDEO CLIP)

JUDITH DROTAR, EVACUATED FROM LIBYA: I never felt, you know, totally threatened. It's just that I didn't flow what was going to happen, none of us did because, as I told you, things deteriorated so rapidly we didn't know what to expect. So the uncertainty was just horrific.

(END VIDEO CLIP)

KAYE: The State Department says that while they have suspended operations at embassy they will keep evacuation task force up and running, just in case there are any Americans left in Libya who might want to leave.

That budget stand-off in Wisconsin tops our look at other stories in the "Weekend Wheel." Governor Scott Walker isn't budgeting on his bill, and the 14 Democratic senators who fled the state avoid voting on the legislation have still waiting it out in Illinois.

Republicans in the other legislative chamber passed the measure Friday, angering Democratic assembly members who wore red to show their opposition. Listen to their reaction right after the measure passed.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: All in favor say aye? Oppose say nay. The ayes have it. The bill is in the Senate. Assembly is adjourned.

CROWD: Shame, shame, shame!

(END VIDEO CLIP)

KAYE: The legislation would remove most collective bargaining rights for teachers and public workers.

Budget troubles in Detroit, as well, and that means big changes in education. The city is closing about half of its public schools and increasing the number of students per class to about 60. The brash moves are in an effort to eliminate $327 million deficit. Following the closings the city will have 72 schools down from 142.

There are signs of a compromise in Congress over avoiding a government shutdown. The current funding expires March 4th, but Congress is out until Monday, meaning it will have only four days to hammer out this budget.

Senate Democrats are said to be considering an offer from House Republicans that slices $4 billion in spending. Those cuts would come from ending eight programs President Obama had in his proposed 2012 budget plus the elimination of earmarks.

The nation's governors are gathering in Washington this weekend for their winter meeting. Some of the Democratic governors were at White House yesterday. We can expect the possible government shutdown and Wisconsin's budget battle to be front and center in their talks today, as they compare notes on how states are dealing with these critical shortfalls.

And now, back to Libya. Libyan leader Moammar Gadhafi is warning that he could escalate the violence if the anti-government demonstrations don't stop. CNN Fionnuala Sweeney is watching the situation from Cairo, Egypt. Fionnuala What are you hearing about what's happening on the ground in Libya today? FIONNUALA SWEENEY, CNN INTERNATIONAL Correspondent: Well, the focus of the tension and the violence is really on the capital Tripoli and it has been mainly for the most part quiet following serious clashes last night and yesterday afternoon. It would appear the state has divided into two countries all it completely unofficial, where the rebels, as they're calling themselves, revolutionaries have taken over various parts of the country leaving only Tripoli and we suspect only parts of Tripoli and Colonel Gadhafi's control.

What it will be interesting to see is whether any of the international pressure that has been building in recent days and gathering momentum particularly in the last 24 hours will have an impact, unlikely on Colonel Gadhafi, but on those in his inner circle. From the last ten days from eyewitnesses is that the defection of members of the army to the side of the revolutionaries that have allowed them to succeed in the other towns outside Tripoli. But the focus remaining front and center on what takes place in Tripoli this evening.

KAYE: And Fionnuala, when you talk about the army joining the opposition, there's a lot of questions surrounding the fact possibly maybe Gadhafi's own guards, own military, might actually turn on him if he doesn't back down at this point. Any word on that?

SWEENEY: Well, that is very much speculation at this point. But that is what the revolutionaries are hoping for. Gadhafi's army went well-equipped. What sustained him in power were his security forces and they still continue to do so.

But what we have to look out for and see if this happens in Tripoli in the next evening and in the next 48 hours is whether there are defections from the security inner circles to the people. The clashes have been concentrated mainly in suburbs, areas in and around the capital, not particularly in Green Square itself.

The demonstrators yesterday hoped to march to green square but unable to do so without meeting fierce resistance from the security forces. So really I think a lot of the focus and attention and concern of both the revolutionaries and international observers including governments will be to see whether or not the inner circle around Colonel Gadhafi defects.

KAYE: Fionnuala Sweeney, we'll leave it there, watching it happen friend Cairo for us, thank you.

If you've ever wondered if world events affect your pockets, the crisis in the Middle East shows you. All you have to do is buy a gallon of gasoline or go to the grocery store. We'll explain.

(COMMERCIAL BREAK)

(WEATHER BREAK)

KAYE: You've probably already noticed this, the price of gas hasn't just gone up, it has skyrocketed. It climbed six cents yesterday, the biggest one-day jump in two years. You can blame the uptick on unrest in Libya. Expect gas prices to get worse, actually, now. One oil analyst says we can expect another 30 cents a gallon hike by next week.

It's quickly shaping up to be a year of protests from Egypt to Libya to Wisconsin. It's hard to keep track of all of this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: All in favor say aye. All opposed say nay. The ayes have it. The bill is in the Senate.

(END VIDEO CLIP)

KAYE: Protesters demanding a voice in government, a voice that you're about to hear live in just 90 seconds.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CROWD: Shame, shame, shame!

(END VIDEO CLIP)

KAYE: Welcome back. It's 14 minutes past the hour.

Wisconsin's assembly has passed a budget bill stripping state workers of most of their collective bargaining rights. But it must still pass in the state Senate. Governor Scott Walker is hoping to convince the 14 Democratic senators who fled the state to avoid voting on the legislation to return to Madison.

More than 60,000 union supporters have demonstrated at the capital for nearly two weeks now. The fight to hold the line against public sector cuts has spread far beyond Wisconsin. In just about two hours thousands will be mobilizing in state capitals across the country for what they are calling "Save the American Dream."

Mary Kay Henry is the president of the Service Employees International Union and she is in Washington this morning. Mary, good morning to you. How concerned are you for your union members as we see these union battles spreading across the U.S. from Wisconsin to Ohio, even to Alaska. What are you hearing from your members?

MARY KAY HENRY, PRESIDENT, SEIU: I'm very concerned, but not just for our union members but for the entire American middle class. We think people are standing up in Madison and the 66 cities across the country today because we want to stand up for our vision of the American dream.

KAYE: This weekend, you have these events planned in more than 50 cities. What happen can we expect in terms of showing solidarity with the workers in Wisconsin?

HENRY: Well, it's been amazing to me that the faith community has risen up and taken the stand. The environmental movement has shown their support both by having organizers in Wisconsin and sending letters of support. It's been an amazing response to helping support the nurses, teachers, snowplow drivers in Wisconsin and in all of those states in saying we're with you. We want to stand up with you and make sure that, when you work hard for a living you get rewarded.

KAYE: I know we spent a lot of time focusing on Wisconsin, but I want to ask you about what's happening in Providence, Rhode Island. We have every teacher in the district in Providence, Rhode Island getting a pink slip, every single teacher. They have a $40 million deficit. Why are teachers being targeted?

HENRY: I think this is the crisis in the states, that we averted with the American Recovery Act the past two years, and we are now having to confront thinking about what kind of country do we want to be in state after state after state as these states cannot fill their budget holes.

And I agree that it's wrong to prioritize teachers, of all of the services for these cuts because I think what we have to do is get back to the table with the private sector, working people in our government to figure out how to get America back to work.

KAYE: You really believe, though, this is all about this coordinated campaign, as you say, to undermine the American middle class?

HENRY: Yes. I'm think that the Koch brothers, who financed Scott Walker's campaign, have been part of a very big plan in state after state to say, our vision for America is low wage jobs with no benefits. And we stand for a vision of America where people can feed their families and expect that their kids can go to college and do better than we did.

KAYE: With neither side backing down in Wisconsin, what do you expect will happen there?

HENRY: Well, I think that people of Wisconsin are ready to have a dialogue about what kind of state we ought to have. I think Scott Walker ought to reconsider the 111 corporate tax loophole benefits in addition. I think the state workers have demonstrated a willingness by giving up 12 percent of their wage increase. And we need to figure out how to share the sacrifice with the entire private sector in getting our country going again.

KAYE: All right. Mary Kay Henry, thank you so much for joining us this morning.

HENRY: Thank you.

KAYE: Have you ever had your car towed? It probably made you pretty angry, right here what happens one Michigan woman did and when she saw her towing bill.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Please. (END VIDEO CLIP)

KAYE: Just a taste of her tirade. You have to see what happened.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You don't know what you're doing! Quit it!

(END VIDEO CLIP)

KAYE: I think we can call that a meltdown. You can hear the woman's child crying in the background and a lot of glass breaking. She pretty much tore up the whole place. So how did we get such good pictures of what happened? There just happened to be a television crew doing a story on the multicar pileup. The suspect, Tiffany Neilous (ph), was arraigned on several felony charges, including assault after that mess.

HIV and AIDS are a punishment from god, at least that's what Patricia Sawo used to believe. But an unexpected revelation about her own health not only forced her to reevaluate those beliefs but to launch a crusade to end the stigma of HIV. It's quite a story, and it's why she's this week's CNN hero.

(BEGIN VIDEOTAPE)

PATRICIA SAWO, CNN HERO: Back in 1990s I believed that AIDS was a punishment from god. When I personally tested HIV positive, it was oh, my god, how could this happen to me? I fasted and prayed for years, hoping that I would be healed. When I went public, I lost my job. My husband lost his job. The landlord wanted us out of his house. The stigma was terrible. I realized that I had been wrong.

My name is Patricia Sawo. My mission is to change people's attitude about HIV.

All that you need is accurate, correct information. We need to shepherd the people. HIV's not a moral issue. It is a virus. I do a lot of counseling. When I'm helping somebody else who is HIV positive, I want them to know that you can rise above this.

The 48 children at the center, most of them saw their parents dying of AIDS. My HIV status brings some kind of a bond. I provide that motherly love, and all of their basic needs. HIV it's making me a better person. We want to be there for people. So if we have it, we share it out. It's what I want to do because it's what I'm meant to do. God has his own ways of healing. For me, I'm healed.

(END VIDEOTAPE)

KAYE: CNN's heroes are chosen from people you tell us about. To nominate someone you know who is making a big difference in your community, it's very easy. Just go to CNNheroes.com. And when we come back, more on Libya. World leaders are pressuring Libyan leader Moammar Gadhafi to step down. Meanwhile, volatile and bloody protests are still happening in the North African nation.

(COMMERCIAL BREAK)

KAYE: Top stories -- federal agencies are making contingency plans and getting ready to shut down government operations in case law makers are can't broker a funding bill by March 4th. But there are some indications a compromise is in the works that would keep the government running for two more weeks. The last federal government shutdown was back in 1996.

Demonstrators crowd the capitol rotunda in Madison, Wisconsin. More than 60,000 union supporters have gathered there for nearly two weeks. They have been protesting to keep collective bargaining but the state assembly voted to end most of those rights yesterday. The state Senate still has to vote.

Tucson shooting suspect Jared Loughner is back in Arizona. He's been moved there ahead of his March 9th hearing on last month's shooting. Loughner is accused of shooting 19 people, including Congresswoman Gabrielle Giffords. Six people died in that attack.

In Libya, leader Moammar Gadhafi is threatening an even stronger response to anti-government protests. During a speech in Tripoli Gadhafi said he'd throw open doors to weapons depots to arm even more of his supporters. He's using security forces to battle protesters right now.

Hundreds of Americans are now trying to find their way home from Turkey and Malta after being evacuated out of Libya. The U.S. embassy has suspended operations but the State Department says they are keeping an operation task force in case, just in case there are other Americans left in Libya that still want to get out.

President Obama signed an executive order last night imposing new financial sanctions on Libya. And in just about 30 minutes the United Nations Security Council is expected to begin considering its own new sanctions aimed at the Gadhafi regime. CNN's senior United Nations correspondent Richard Roth joins me from New York. Richard, good morning. What are we expecting to hear out of the U.N. today?

RICHARD ROTH, CNN CORRESPONDENT: We don't know yet if we're going to get a vote. The Security Council will discuss behind closed doors expanded package of sanctions, sanctions that were imposed on Libya the same ones after the Lockerbie Pan Am bombing that occurred in 1988. Those sanctions took time to work also.

Now, Libya's United Nations ambassador gave an impassions plea to the Security Council to an effect come to the aid of the Libyan people against his own former boss, you might say.

(BEGIN VIDEO CLIP) ABDURRAHMAN MOHAMED SHALGHAM, LIBYAN AMBASSADOR TO U.N.: I tell my brother Gadhafi, leave the Libyans alone. However you kill, however the atrocities, and who presented martyrs when they were barefooted when they were poor. We do not surrender, either we are in victory or we die. We do not surrender. Either victory or this.

(END VIDEO CLIP)

ROTH: The Libyan embassy says he's fighting for the Libyan people, not Colonel Gadhafi, who was a lifelong friend of his. These sanctions if imposed would include a travel ban, an asset freeze, among other things. The Libyan ambassador and his deputy got hugs after the speeches in the Security Council. You see the deputy crying in the upper portion of the screen.

You don't often see these scenes inside the United Nations. Difficult for the ambassadors to come out, though they must have known the political winds have shifted enough it was safe. So the deputy came out against Gadhafi on Monday here in New York.

Secretary-General Ban also demanding Security Council action.

(BEGIN VIDEO CLIP)

BAN KI-MOON, U.N. SECRETARY-GENERAL: The violence must stop. Those responsible for so brutally shedding the bled of innocents must be punished. Fundamental human rights must be respected. The challenge for us now to is protect Libyan civilians and to all we can to halt the ongoing violence.

(END VIDEO CLIP)

ROTH: One aspect of the sanctions debate, Randi, that may hold things up is a plan, according to the resolution, a referral of Libya, Libya's authorities, to the International Criminal Court in the Hague for investigation for potential prosecution of crimes against humanity.

That is not something that happens often at U.N. will all of these sanctions measures make a difference, have some teeth? Not quick enough, I believe to assist the people trying to overthrow Gadhafi. Randy?

KAYE: He's been sanctioned before, Gadhafi, right, and didn't really do much. He's still in power.

ROTH: Right. It wasn't until after 9/11 and the climate then that Gadhafi decided to give up weapons as part of closer ties to the west. The sanctions were lifted in 2003 in December. It took over ten years, really, for them to make a difference when Libya turned over those suspects wanted in the Lockerbie bombing.

These probably will not make a fast enough difference. They do not include a no-fly zone over Libya to stop Libyan air attacks on civilians as requested by the Libyan deputy ambassador. That would be a prolonged process. Other countries have unilateral actions. Any military option by someone else is not precluded by these sanctions being voted on here.

KAYE: Richard, thank you so much. Good to see you.

Well, it is Oscar time. The stars, the glamour, and winning the golden statue, it is all happening tomorrow. For some, the excitement is all about getting red carpet ready. We'll tell you what you can expect to see your favorite stars wearing.

(COMMERCIAL BREAK)

KAYE: It's 34 minutes past the hour. Welcome back. We are all waiting to see who wins tomorrow night at the 83rd annual Academy Awards show. But let's face it, that glamorous walk down the red carpet is, for some, just as exciting. Who wears who? What is the newest trend? And who will wow us for Hollywood's biggest fashion event?

Here to walk us through what we might see on the red carpet is the fashion director for "In style" magazine, Hal Rubenstein, joining us from Los Angeles. Hal, welcome back. Last time you were on you said color, color, color. Is that what we can expect to see tomorrow night?

HAL RUBENSTEIN, FASHION DIRECTOR, "IN STYLE" MAGAZINE: And I was right. Yes, you're going to see a lot more of it, because it's been so successful. It's -- I think actresses have finally realized if you want your picture the next day in the paper, you want to be back in TV, it's color that stands out, color that pops. And it's color this year that's bright somewhere bolder than I think than it's been in many a season. It's not about a pastel or a muted jewel tone. It's about red, yellow, emerald green, bright blue. It's really intense.

KAYE: So who are you going to have your eyes on, do you think, tomorrow night?

RUBENSTEIN: Frankly, for all of the nominees that are there, Natalie Portman and Nicole Kidman, the person I think to watch is Anne Hathaway. Anne Hathaway, I mean, she's striking young woman, you know, bright, big features, and she's the host, which means my guess, anywhere from six to nine costume changes. So she is going to be like her own red carpet parade.

KAYE: That is any woman's dream to be able to wear six to eight or nine outfits in one evening, especially gowns like those. Should we expect anyone to really surprise us, do you think, tomorrow night?

RUBENSTEIN: You know, I don't know. But I think what really is striking this season is that people are not sort of falling back into easy patterns or just picking the black dress with the diamonds, because it doesn't work anymore. It doesn't work anymore.

Fashion is actually really in the last couple of seasons really gone to a good place. And I think what happened was that economic downturn initially started everybody going, you know something. We don't know what works so let's take some risks. Let's take some risks and go back to our core of really individual design. And the uniqueness of what designers have done is reflected in the choices of the actresses. When you see someone like Natalie Portman wearing clothes by Rodan and Nicole Kidman making unique choices, and Haleigh Steinfeld, who is 13, and yet someone is dressing her very smartly so she truly stands out yet still looks young, doesn't look like mama's dresses. People are thinking of dresses that stand out.

KAYE: But sometimes, we have to admit, there's one or maybe two or three, who do make us cringe. So is there anyone that you worry about on a night like this that might make us think maybe you shouldn't have worn that?

RUBENSTEIN: Unfortunately I think we're waiting for those disasters like Demi Moore in bike short moments, but they don't happen anymore. They really don't. Everyone's gotten very smart. Yes, you can look at Helena Bonham Carter who always looks a little bit odd. But frankly, she dresses like the classic British eccentric. She loves Vivian Westwood. That's her natural look. I love it because it doesn't look like anybody else. But nobody makes that flub. I mean I wish they did, because that would make it more fun. But Cher's not there.

KAYE: Remember that one?

(LAUGHTER)

RUBENSTEIN: Oh, I loved them. Incredible. I love those Bob Mackie pieces. There's no Celine Dion with a dress going backwards.

KAYE: Or Bjork, remember that?

RUBENSTEIN: My favorite was Kim Basinger who wore a dress that was formal on one side, modernist on the other that she designed herself that was hideous. But we don't get those moments anymore because the actors and the stylists have gotten much smart.

KAYE: I guess that's good news. Pleasure talking to you about that about. Hal Rubenstein, that was really fun. We'll certainly all be watching tomorrow night.

RUBENSTEIN: We'll talk on Sunday and see what happens.

KAYE: Sounds good. Good to see you.

A toddler gets locked inside a bank vault. How the child wound up there, and this very dramatic rescue when we come back.

(COMMERCIAL BREAK)

KAYE: We are now less than one week away from a possible government shutdown. The continuing resolution that's keeping the federal government funded expires on March 4th. But right now it looks like there could be progress towards a deal.

So let's bring in CNN deputy political director Paul Steinhauser. He's in Washington this morning. Paul, the time is really running out. What do Americans want?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Randi, they are talking about a possible compromise, and that's what may happen. Behind me on Capitol Hill you've got Senate Democrats and House Republicans, and they're getting close to a compromise on a two-week extension that would put this off for another two weeks. It would fund the government for two weeks and well, we could be back in the same mess we are right now with the possibility of a government a shutdown.

But compromise on Capitol Hill, that's what Americans want. Check this out. This is a poll conducted by Gallup and "USA Today." Right at the top, six out of 10 say that's what they want lawmakers in Congress to do, they want them to compromise on this budget battle between Democrats and Republicans. And 32 percent on the bottom want their lawmakers to stick to their guns, even if that means a government shutdown. Randi?

KAYE: And is there one side or the other that Americans actually think is doing a better job when it comes to the budget?

STEINHAUSER: That's a good question. This poll indicates, no, Americans are divided. Let's go back to the numbers and crunch them. You can see right here, 42 percent say they think the congressional Republicans are kind of doing the better job in this budget battle, 39 percent say the president and Democrats. The bottom there, 16 percent, they don't have an opinion.

Why does this matter? Because there was a lot of blame back in '95 last time we had the shutdown and neither part this time want to be blamed if there is a government shutdown, neither party wants to be blamed.

KAYE: Those polls are always so interesting. Thanks, Paul, appreciate it.

Let's go cross country now for some other great stories that we are covering. A California man feels fresh air and freedom for the first time in 18 years. Caravan (ph) Conley He was wrongly convicted of a double murder and ordered released at the end of January. Well, Conley calls life on the outside "a challenge."

A driver in Massachusetts creates her own drive-through at this coffee shop. Did you see that? She just put the brake on when the van suddenly accelerated. Police call it an accident, and she will not be charged.

And police rushed to this Wells Fargo bran inch Conyers, Georgia, after a 14-month-old girl got locked inside the vault. Surveillance tape shows the toddler wandering around inside the vault. When police realized she had a few hours of breathable air left, they called a locksmith.

Charlie Sheen's popular sitcom "Two and a Half Men" is on hiatus. In the next hour, the choice words the actor said that might have led producers to temporarily pull the plug. But first, it's the end of an era. Shuttle Discovery lifted off on its final mission Thursday from the Kennedy space center in Florida. Discover is the fleet leader, having flown more missions than any other shuttle, 150 million miles in all.

So we want to test your space knowledge this morning. Here's a question for you. Do you know what year Discovery blasted off on its first voyage? Was it 1977, 1984, or 1991? Pick your year and we'll give you the answer right after this break.

(COMMERCIAL BREAK)

KAYE: Shuttle Discovery took off on its final mission from earlier this week from Kennedy space center in Florida. So before the break we asked you when Discovery embarked on its first voyage. Reynolds you guessed it, '84. August 30, 1984. At the time it was the third operational shuttle. Today, it's the oldest one in service.

Now take a look at this, in honor of NASA's shuttle program winding down, CNN has condensed every shuttle launch, all 132, into 132 seconds. How cool is that? You can watch all of them at CNN.com. Isn't that cool?

(WEATHER BREAK)

KAYE: The London based "Economist" magazine ranked the most livable cities. The list is based on factors such as health care, education, environment, infrastructure.

Take a look, top city is here in North America. It's Vancouver, Canada, followed by Melbourne, Australia, and Vienna, Austria. How did U.S. cities do? Not quite so well, unfortunately. Coming in at number 34 is Washington, D.C. Honolulu, Hawaii came in at number 30. And the top U.S. city in the ranking, believe it or not, is Pittsburgh at 29.

There's a big change on the way for your kids' classic EZ-Bake oven because after a half century they have to change the way in works now. The play oven uses heat from a 100-watt incandescent light bulb to heat the food. Those light bulbs are being eliminated and won't be made after this year. Hasbro says they are making new ovens with a different heating element. For the people who don't want to give up their classic EZ-Bakes, they've started stockpiling 100 watt bulbs.

It turns out the duchess of York, Sarah Ferguson, won't have to worry about what to wear to Prince William and Kate Middleton's wedding because she's not invited. We can't wait to tell you which popular American rapper is on the coveted guest list.

(COMMERCIAL BREAK)

KAYE: Welcome back. In the "Gray Zone" today we're talking the juiciest pop culture with CNN producer Jack Gray, who is joining us from New York. Good morning to you, Jack.

JACK GRAY, CNN PRODUCER: Good morning, Randi. Good to see you. KAYE: You, too. Busy week in terms of pop culture, a lot to get to. Why don't we start with the royal wedding invites. Who's in? Who's out?

GRAY: We heard that Sarah Ferguson, the duchess of York was not invited. I get that. There's awkward history. And then we started to hear who was invited, or who is invited. David and Victoria Beckham, Elton John. Those make sense.

But Kanye West? Yes, apparently he had done some tribute concert for Princess Diana, yes, a few years ago. I don't know about you, but I'd rather have Fergie and her surveillance tape and bag full of cash than the giant bucket of crazy known as Kanye West. That's just me.

(LAUGHTER)

KAYE: He's going to be a real interesting guest there. I'm sure he'll get to know Kate Middleton and a few of her friends.

GRAY: Yes. I would keep him under close watch.

KAYE: Let's talk about the Oscars. We've been talking about that quite a bit. They're happening tomorrow night. You're tweeting and live blogging during the Oscars. Tell us what you're expecting.

GRAY: Well, I'll be tweeting @JackgrayCNN and live blogging at AC360.com in my tuxedo Snuggie, of course, on my couch with my drunk dog. But all eyes will be on Anne Hathaway and James Franco, I think, first-time hosts. I don't know what to expect of them really. I'm hoping one is drunk, frankly.

And in terms of nominees, the one I'm rooting for, Randi, is Annette Bening. I think she totally deserves. So great in "The Kids are All Right."

KAYE: She was fantastic.

GRAY: She deserves it. It's such a great movie. Plus, she's married to Warren Beatty, who is, you know, I want to be half as cool as Warren Beatty when I grow up, as you know.

KAYE: Don't we all? Don't we all?

What about Lindsay Lohan, again, more news about Lindsay Lohan this week?

GRAY: Yes. And you talk about Charlie sheen earlier. So you know how crazy of a week it is in L.A. when Lindsay Lohan looks comparatively stable. There was another hearing for the alleged jewelry theft. Still unclear what's going to happen to her because of that.

But she isn't giving any interviews. Unfortunately her father, Michael Lohan is, he was on the Piers Morgan show. And I don't know what to say about her except I tweeted piers and I said he needs to just give me, you know, a giant quantity of Pepto-Bismol or something to help with the nausea next time he's going to be on. It was something to be seen.

KAYE: Both parents have come out say they're worried and want to help her but nothing seems to be getting done.

GRAY: Yes. I mean, they're just -- they're both pieces of work. I don't know. I feel bad for her. I think they're part of the problem, frankly. I mean I'm sure they're great on Piers, but they drive me nuts.

KAYE: But the big news, just quickly, Kim Kardashian, Paris Hilton, the feud is over, the BFFs again?

GRAY: Yes. I didn't even know they were feuding. So you need to stop hoarding "US Weekly." But apparently they've been feuding for years and reconciled at some Grammy party.

Kim is this huge reality star and Paris is doing whatever it is she's doing. But they made up. All is well until I assume the next sex tape. I don't know about you. I assume that's what it's going to come down.

KAYE: I like how we leave it on a note like that and we're out of time and I'm thankful we don't have to talk about that last comment. We are out of time.

CNN producer Jack Gray, thank you, as always for joining us.

GRAY: Thanks, Randi.

KAYE: Remember, Jack will be tweeting and live blogging during the Oscars, along with his dog on his couch in his Snuggie at home.