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CNN Live Saturday

Ariel Sharon Undergoes Another Surgery; Muslims Still Angry Over Cartoon; Mahmoud Ahmadinejad Hinted At Withdrawing From Nonproliferation Treaty; New Orleans Preparing For Mardi Gras; Longest Nonstop Flight In Aviation History; Ms. Shabazz Interview; Michael Brown Feels Like A Scapegoat; Melvin Robinson Copes In New Orleans; Operation Slapshot; Olympic Update; Ken Gets Makeover

Aired February 11, 2006 - 12:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: In Iran, more tough words concerning the country's nuclear plan. During a speech in Tehran, President Mahmoud Ahmadinejad hinted that Iran may withdraw from the Nuclear Nonproliferation Treaty. The speech came during ceremonies marking the 27th anniversary of the country's Islamic revolution.
Muslims continue to vent their anger over cartoons of the Prophet Mohammed. This was the scene in London's Trafalgar earlier today. The protest was mostly peaceful. The drawing, first printed in a Danish newspaper has sparked anger from Muslims around the world.

Italian health officials a reporting that country's first confirmed cases of bird flew. They say they found the deadly virus among swans in southern Italy and Sicily, but no human cases have been reported.

And just moments ago in the air above Ireland, Steve Fossett broke the record for the longest nonstop flight without refueling in aviation history. The record was just under 25,000 miles. Fossett is scheduled to land his experimental plane in England a short time from now.

And the winter Olympic games are under way in Torino, Italy. Today is the first day of competition and more than 2,500 athletes from around the world are taking part. We'll check in with CNN's Alessio Vinci for a live report coming up.

We begin this hour with a developing story in Jerusalem. Israeli Prime Minister Ariel Sharon underwent emergency surgery this morning. Surgeons removed part of Mr. Sharon's intestine after discovering a problem in his digestive tract. Doctors say he's no the in immediate danger, however Mr. Sharon has been in a coma since suffering a stroke January 4. CNN's Guy Raz is monitoring the developments from Jerusalem -- Guy.

GUY RAZ, CNN CORRESPONDENT: Fredricka, in political and military life, Ariel Shorn makes something of a career of defying the naysayers. Once again, he is defying the odds struggling to live. This just hours after doctors earlier in the day suggested Ariel Sharon may not make it through this day, in fact that he may die.

That didn't happen. After undergoing four hours of surgery to remove about 20 inches of his large intestine, this after doctors discovered there were serious complications in his digestive tract. Doctors, once again, announced that Ariel Sharon had survived and his continue had stabilized.

Now, the fourth major surgery he has undergone since being admitted to this hospital on January 4 after suffering a massive brain hemorrhage. Just about two hours ago doctors updated us on his condition. Here's what, Shlomo Mor-Yosef, the director general of the hospital had to say.

(BEGIN VIDEO CLIP)

SHLOMO MOR-YOSEF, DIR. HADASSAH HOSPITAL: The condition of Prime Minister Sharon is stable, but critical. In the morning, it was really immediate danger to his life, but now, I can say that he's critical, stable and there is no danger to the life of Prime Minister Sharon.

(END VIDEO CLIP)

RAZ: Fredricka the prime minister has been in this hospital for 39 days and doctors underline the central problem remains his lack of consciousness. He has never awakened from the coma that he was initially induced, initially medically-induced coma after the sedatives were slowly removed, but still, he has been in that coma since that time, and the long-term prognosis remains very, very pessimistic -- Fredricka.

WHITFIELD: All right, Guy Raz in Jerusalem, thank you so much.

Well, Mr. Sharon's declining health has had a direct impact on the "Road Map for Peace" in the Middle East. Let's check in with Kathleen Koch with some reaction from the White House -- Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Fredricka, Prime Minister Sharon has obviously been a critical partner for President Bush in his efforts to end the violence and turmoil in the Middle East and eventually establish a permanent Palestinian state, so the White House is watching today's downturn in his health, very, very carefully.

Spokesman Scott McClellan saying, quote, "The White House is closely following the situation and keeping Prime Minister Sharon in our thoughts and prayers." Now, President Bush, some five weeks ago, when Ariel Sharon suffered this massive stroke said, quote, "He's a good man, a strong man, with a vision for peace."

Now, the two leaders have met nearly a dozen times since they both took office, one as prime minister, one as president, within over two weeks of each other back in 2001, so Sharon has been virtually the only Israeli leader, then, that the president has dealt with on a continuous basis since taking office and they've not always agreed on every point. Sharon, himself, had a little enthusiasm for direct negotiations with the Palestinians, preferring a more unilateral approach.

The Bush administration has continued to advance the so-called "Road Map for Peace," but at the same time, the president has largely been supportive of Sharon's efforts, including the unilateral withdrawal from the Gaza Strip. So, obviously with Sharon comatose since January, the White House has accepted the fact that eventually, another leader will fill his role. Administration officials, though, said all along that they do expect the peace process to continue.

Of course, complicating that was the development last month, Hamas' victory in the Palestinian elections. President Bush saying at that point he would not work with Hamas until it disarms its militias and renounces its goal of destroying Israel. The president's schedule today, he is in Washington, has nothing official on his schedule. That while the first lady, of course, is in -- touring Italy for the opening ceremonies of the Olympic games last night.

WHITFIELD: All right, Kathleen Koch, thanks so much from the White House.

Well, CNN will continue to monitor Mr. Sharon's condition and we'll tell you of any new information as it becomes available.

Well, former FEMA director Michael Brown says he feels abandoned by the Bush administration and agrees he's been made a scapegoat. Brown quit under fire of his handling of the Hurricane Katrina disaster. During a three hour Senate grilling, Brown shifted the blame. CNN's Homeland Security correspondent Jeanne Meserve reports.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN WHITE HOUSE CORRESPONDENT (voice-over): Michael Brown, uncensored.

MICHAEL BROWN, FMR. FEMA DIRECTOR: It was balls to the wall, I was literally constrained by Secretary Chertoff, and I was certainly screaming and cussing at people.

UNIDENTIFIED MALE: Do you feel like you've been sort of set up to be the scapegoat to this, to be the fall guy?

BROWN: Yes, sir. Yes, sir. I can't lie to you but yeah, I feel that way.

MESERVE: But Brown got even, dishing on who knew what when about New Orleans. President Bush and Homeland Security Secretary Michael Chertoff have said they didn't know the enormity of the crisis until Tuesday, August 30, the day after Katrina made landfall, but Brown said he had made the picture clear Monday, in video conferences with top Homeland officials.

BROWN: For them to now claim that we didn't have awareness of it I think is just baloney.

MESERVE: He testified he talked that Monday to deputy White House chief of staff Joe Hagin.

SEN. JOE LIEBERMAN (D), CONNECTICUT: Did you tell Mr. Hagin in that phone call that New Orleans was flooding? BROWN: I think I told him that we were realizing our worst nightmare.

MESERVE: But Brown said he didn't remember whether he had talked to the president or Chertoff the day of the storm. Brown said that he was well aware of FEMA's shortcomings long before Katrina but his efforts to improve preparedness had been futile because FEMA was doomed to fail in a Department of Homeland Security focused on terrorism.

BROWN: This was a natural disaster that has become the stepchild within the Department of Homeland Security.

MESERVE: But not all the senators were buying Brown's pitch.

SEN. NORM COLEMAN (R), MINNESOTA: You didn't provide the leadership, even with structural infirmities, strong leadership can overcome that and clearly, that wasn't the case here.

BROWN: Well, Senator, that's very easy for to you say, sitting behind that dais and not being there in the middle of that disaster, watching that human suffering and watching those people dying.

MESERVE: It unclear how much of that Michael Brown saw, if any. He spent most of the crisis in Baton Rouge at the order of Michael Chertoff.

(on camera): The White House is not reacting to Brown's testimony, saying only that it has its own report on the Katrina response in the works. But a Department of Homeland Security spokesman says if there was a failure in Washington to grasp the situation in New Orleans, it was the fault of the battlefield commander on the ground, Mike Brown.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: And despite Hurricane Katrina, New Orleans is preparing for, what else? Mardi Gras. In about 30 minutes we'll talk with the head of the city's convention and business bureau about what tourists can expect and how the party has taken on new meaning.

And the northeast is preparing for a major winter storm. Today parts of Tennessee and Georgia have already gotten a taste of Old Man Winter. Straight ahead, the latest on the cold blast, stay tuned.

(BEGIN VIDEOTAPE)

BONNIE SCHNEIDER, CNN METEOROLOGIST: I'm CNN meteorologist Bonnie Schneider with a look at your "Cold and Flu Report" for Saturday. As we check things out across the country, you'll many states across the nation reporting outbreaks of the flu so far season. In fact, regional activity reported across much of the southeast, including Florida. Up towards New York state where we're expecting the nor'easter to arrive tonight, widespread activity, that's also true for Texas, where the weather is very dry right now. And regional outbreaks of the flu also reported to California and other states in the southwest, with local activity in the region of the northern tier of the country. That's a look at your "Cold and Flu Report" for Saturday. Have a great weekend.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Well, even in some parts of Tennessee they got enough snowfall to actually make a few snowballs. But right now you're looking at Knoxville, Tennessee, where the snowfall looks more like just a nuisance; it's very wet and nasty. Well, it is definitely winter this weekend in a good part of the country, with blizzard conditions promised for the northeast, and snow showers possibly throughout other parts of the south, as well. Here's meteorologist Bonnie Schneider to tell us more about that -- Bonnie.

(WEATHER REPORT)

WHITFIELD: Wow, so for anyone who wasn't convinced, when we first said "nor'easter on the way," I think now they are, Bonnie.

SCHNEIDER: Good.

WHITFIELD: All right, thanks so much.

Well, let's return now to New Orleans, where the promise of Mardi Gras is already in the air, but despite the sounds on Bourbon Street, the city aches for what is missing still. CNN's Anderson Cooper reports.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN CORRESPONDENT (voice-over): The lights are on, on Bourbon Street, people are back outside looking for a good time, music once again fills the air. Images like these show what has returned to New Orleans, and we'll soon see more in the weeks ahead when Mardi Gras parades march through. But these images are deceiving.

For everything that has returned to the Gulf region, there is still so much missing. Sure, people have moved back into New Orleans, but only 150,000. The city is still missing about 330,000 residents, two-thirds of its pre-Katrina population, now spread out elsewhere in the country. One thing we noticed early on is the lack of children here, a good number of families haven't returned, concerned that their kids wouldn't have a safe place to live and play.

UNIDENTIFIED FEMALE: I wouldn't let them play outside there. I'd probably be terrified.

COOPER: And even if all the children had returned to New Orleans, where would they learn? Schools are among the missing. The mayor's office says only three of the city's 117 public schools have reopened.

UNIDENTIFIED FEMALE: Welcome back!

COOPER: And then there's the question of where people could live, with large parts of the Gulf still in ruins, many residents had turned to the government for help, asking for trailers to live in, as they rebuild. But a lot of those trailers are still missing. FEMA had received 135,000 trailer requests from all along the Gulf Coast. Only a little more than half of those requests have been filled and New Orleans has received less than a fifth of the trailers it wanted.

For those who chose to return to their homes, in some neighborhoods, basic necessities are still missing. Sewage systems are still not working for neighborhoods along Lake Ponchartrain, five percent of this city is still in the dark, no electricity, and trash is everywhere. Just six million of the city's 50 million cubic yards of hurricane debris has been cleared.

Before Katrina, New Orleans had seven working hospitals. Now, only two are open, and only one is for adults. About 3,000 doctors who fled New Orleans because of Katrina have yet to return. This is just scratching the surface. People are still missing loved ones.

Pets are still missing their owners. Victims are still missing much needed aid and bodies are still missing identities. Considering it's already been almost half a year since the storm, there's a good chance these things will remain missing for a long time to come.

(END VIDEOTAPE)

WHITFIELD: And a reminder to watch "Anderson Cooper 360" Monday through Friday, 10:00 to Midnight Eastern Time.

And this information just in, adventurer Steve Fossett, after traveling 27,000 miles over a three and a half day period, making the longest nonstop flight in aviation history, well now he and his Virgin Atlantic global flyer are safe and on the ground, after landing at Kent International Airport in Manston, England. So mission accomplished for him.

Well this week, the nation bid farewell to Coretta Scott King, recalling both the woman and her long years of work in the American Civil Rights Movement. After the break, we'll be joined by Ms. Shabazz, the daughter of Malcolm X and talk about the future of women in the movement. We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: The deaths of Rosa Parks, and more recently, Coretta Scott King have left a void in the Civil Rights Movement. But other African-American women are poised to continue the fight.

(BEGIN VIDEO CLIP) MAYA ANGELOU, AUTHOR, POET: I pledge to you, my sister, I will never cease. I mean to say, I want to see a better world. I mean to say I want to see some peace somewhere. I mean to say I want to see some honesty, some fair play. I want to see kindness and justice. This is what I want to see, and I want to see it through my eyes and through your eyes, Coretta Scott King.

(END VIDEO CLIP)

WHITFIELD: And in addition to author Maya Angelou, who you just say, Ms. Shabazz, daughter of Malcolm X knows of the struggle first hand. She joins us now from Los Angeles.

Good to see you, Ms. Shabazz. And before we talk about the women in the movement. I want to ask you a few other things about your participation at the ceremony, the funeral of Ms. King. Good to see you.

MS. SHABAZZ, DAUGHTER OF MALCOLM X: Good morning.

WHITFIELD: All right, well, during the ceremony of Mrs. King, you talked about the importance of why it was so vital for people to understand the kind of relationship and the commonalities that the King family and the Shabazz family shared, and how you and Yolanda, first off, really did forge an important relationship that was so long-lasting. Why was it so important for you to set the stage in that manner?

SHABAZZ: Well, I don't know if my intention was to set the stage, but when I was asked to speak about the union of the family, I was surprised at how many people presumed we did not have a love, a sense of regard, and respect for one another.

You know, when you live intimately with one another, your truth is so much more human and very now and then we have to come across the persons on the outside who have a snapshot of what they think the movement is, what our roles in that movement are, and how we live daily, and our mothers were such human beings, in spite of how they have been recognized in terms of their strength. They were very vulnerable, but very committed to their respective husbands, and their husband's children, the commitment to their marriage.

WHITFIELD: And this was a really emotional moment for you, wasn't it? That you felt, as much a connection with this family as you do with your own, given that your families shared so much in what it encountered as a whole, not just your father as real trailblazers, but the families as a whole, the kinds of struggles and encounters that you all shared.

SHABAZZ: And I think moreover, when I thought of Mrs. King, I did not think of Mrs. King as a mother of the movement. I thought of Mrs. King as a mother. I thought of Mrs. King as my mother's sister, and good friend. I thought of Mrs. King as someone who was emotionally candid, and intimate with me, as per hour vulnerability in losing my mother. I thought of Mrs. King as a human being. WHITFIELD: The general public did look at her as a first lady of the movement, but there were a lot of first ladies. You talk about your mom, Ms. Shabazz, Betty Shabazz, not just of Mrs. King, but also there are so many women who were helping to lead the fight, but perhaps they weren't as center stage as some of the men were, Merlie Evers, and others, Nona (ph) Clayton, another. How concerned are you or how encouraged are you that baton is being passed to a new generation of women?

SHABAZZ: Well, you know, I don't know if women are never a part of something. We are always -- there's Winnie Mandela on your monitor. I think in my life, having grown up around grandmothers, my own grandmothers, the aunts and the women in our community, women are always part of something.

I don't think that as long as there are women on the earth, that we will not be who we are, and pick up the torch and move further, that it is in our bosom it is in our hearts to extend ourselves to continue what is essential, and the more women are in pivotal roles, I think we'll get to be greater beneficiaries of the softness of the emotional balance of the sensitivity that women offer.

WHITFIELD: Are you encouraged or do you see that there are women of a younger generation who really probably don't understand only because of what they've read about it in the books or what their parents or grandparents taught them, but don't understand about the sacrifice and struggle that so many of these women we're talking about endured. Do you feel like there are a number of women of these younger generations who will be able to pick up where their mothers and grandmothers, our mothers and grandmothers took off?

SHABAZZ: Absolutely, because I think it's innate. I think it is natural. What has to happen is that more of the examples -- the mirror has to presented, such as the women that spoke at Mrs. King's service, were absolutely powerful and passionate, and there was there is Oliver Tambo as well as Merlie Evers and there were so many in the audience. I don't think it's so far-fetched for young girls and young ladies to move ahead. We have to make sure that the picture of those examples are around them, in the way that I was fortunate to see.

WHITFIELD: Is there a way to kind of encapsulate the kind of burden or maybe it's even a challenge that you and your siblings had to bear, after the passing of your father, Malcolm X, your mom, Betty Shabazz. Can you foreshadow, in any way what, the King children are going to be going through, how difficult it will be to bear this burden?

You heard former President Clinton -- former Clinton -- former President Clinton talk about it really is a heavy burden to bear when you are children of people who have done so much, who have achieved such greatness, such as the Kings or your dad. What are they going to be encountering over the next few weeks, months, perhaps even years, the rest of their lives?

SHABAZZ: Well, I don't know that but I am certainly on call for each of them individually for that, which you do not want to have to wear or go through in public. We're entitled to the adjustment to the loss. I think that does not make us any different from any human being that has lost a mother or father.

I think the challenge for us may be that, for others, it's not a loss. I mean it's a loss for a moment. It's a shock for a moment, but the messages of our parents are so prominent and so resonating, that it somehow or another sustains for other people.

What is intimate for us is just simply being able to call a mommy or daddy on the phone or have the embrace or the encouragement or the warm caress or touch we may need as children, but I, my heart is -- was awaiting in anticipation for what I know will unfold at different times. It's not immediate.

We're all faith-filled children so we're fortunate in that respect. We all are really proud of the legacy from which we come, so we're sustained by that honor. But it will unfold in different ways, and I'm not able to anticipate what that is, other than the fact that I am a sibling to them, absolutely dedicated to being there whenever they need me.

WHITFIELD: Ms. Shabazz, thank you so much for being with us.

SHABAZZ: Thank you.

WHITFIELD: And joining us from Los Angeles.

SHABAZZ: Thank you very much.

WHITFIELD: And we'll take a look back at this week's tributes to Coretta Scott King as the nation said good-bye to the Civil Rights icon. Stay tuned to for "Remembering Coretta Scott King," that's at 2:00 Eastern Time, today.

And Fiery testimony on Capitol Hill. Michael Brown says he feels like a scapegoat. Ahead, we hear more from the former head of FEMA.

And later, we're live at the winter games in Torino, Italy. We'll bring you the news from the Olympic village and competitions of course, straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Another look at our top stories. Doctors treating Ariel Sharon say there's no immediate danger to his life after he underwent intestinal surgery. The Israeli prime minister remains in a Jerusalem hospital. He's been in a coma since he suffered a massive stroke more than a year ago -- or month ago, rather.

U.S. Defense Secretary Donald Rumsfeld has begun a three-day tour of North Africa with a visit today to Tunisia. While there he said the U.S. wants to strengthen its military ties with Tunisia, Algeria and Morocco in an effort to combat terrorism and extremism.

In the British capital another outpouring of anger over cartoons of the Prophet Mohammed. But there's no word of any violence in today's protest in London's Trafalgar Square. The drawings first printed in a Danish newspaper have sparked anger from Muslims around the world.

And here in the United States, the Northeast is bracing for a big snowstorm. Blizzard watches are in place this weekend for parts of the region. Forecasters say the Mid-Atlantic states could get more than a foot of snow.

And former FEMA director Michael Brown concedes he feels like a scapegoat for the administration's slow response in the aftermath of Hurricane Katrina. Brown defended his own response during a three- hour grilling before a Senate panel on Friday.

(BEGIN VIDEO CLIP)

SEN. MARK PRYOR (D), ARKANSAS: Do you feel like you've been sort of set up to be the scapegoat, to be the fall guy?

BROWN: Yes, sir. Yes, sir. I can't lie to you but yes, I feel that way.

PRYOR: You feel like the administration's done that to you?

BROWN: I certainly feel somewhat abandoned.

PRYOR: In your opinion, just your opinion as a private citizen, should FEMA be in DHS?

BROWN: I have since come to the conclusion that the cultural differences are so wide and so great that it cannot function within DHS.

(END VIDEO CLIP)

WHITFIELD: Brown insists that the day Katrina hit he personally warned the White House and Homeland Security chief Michael Chertoff that New Orleans was in desperate trouble. Brown quit amid strong criticism over the federal response.

Pointing fingers and placing blame is not much consolation to hurricane victims still coping with catastrophic losses. CNN's Sean Callebs found one man who wonders what kind of future New Orleans holds for anyone.

(BEGIN VIDEOTAPE)

MELVIN ROBINSON, HOMELESS IN NEW ORLEANS: It's kind of scary. It makes me feel like I'm, you know, something's going to happen.

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): He doesn't like it, but Melvin Robinson has been forced to become a creature of the night.

ROBINSON: Yes, this is home.

CALLEBS: And this is where he lives, sleeps, and eats most of his meals.

ROBINSON: Some juice, milk. This is actually my little mini apartment. I have my cereal and stuff.

CALLEBS: Robinson was staying at this New Orleans hotel but that ended a few days ago, when FEMA denied his extension request and the federal government stopped paying for his room here. The reason?

He had been living in Dallas since evacuating, and FEMA is still paying for a hotel room there, for his daughter, niece and aunt. The agency says it won't pay for two rooms for a single family. Robinson came back to New Orleans because he needed to work.

ROBINSON: This is magazine.

CALLEBS: He's a bus driver.

ROBINSON: Professional, yes.

CALLEBS: He believes he's someone who fell through the cracks.

(on camera): Robinson lived in this East New Orleans apartment complex five years, until Katrina did all of this. He's the kind of guy who never thought he'd be sleeping in his truck.

He says he's worked hard his entire life, but with much of the city still in ruins, he says he simply can't find a decent, affordable place for he and his family to live.

ROBINSON: Always (ph) sleeping in the cold weather and try to go look at a few places today.

CALLEBS (voice-over): But this is the sign of the times, and all apartment managers can do is add his name to a long waiting list.

UNIDENTIFIED FEMALE: It starts here, and it goes all the way.

ROBINSON: Getting hectic now.

CALLEBS: So it's back to the night, and the truck, and the pent- up frustration.

ROBINSON: Now I'm living in my car. You know, there's no place for us to live. The mayor says that, at the end of the day, it's going to be chocolate city. The rate they're going, at the end of the day, it's going to be the empty city.

CALLEBS: He wonders why would the middle class workforce return?

ROBINSON: A lot of people are paying more money, you know, for rent than they was paying for a mortgage before they left.

CALLEBS: Monday marks another deadline, when FEMA will stop paying for more Katrina evacuees.

ROBINSON: When you put everyone out of the hotel, where are these people going to go? Think about it. Where are they going to go? They have no place to go. Say good night to the kids.

CALLEBS: Home remains the 2000 Dodge truck Robinson bought in part with a $1,200 settlement when his old vehicle washed way. But he says tomorrow is another day.

ROBINSON: Hopefully, it will be a good night.

CALLEBS: Perhaps today he finds a permanent place to live.

Sean Callebs, CNN, New Orleans.

(END VIDEOTAPE)

WHITFIELD: Well, hurricane victims all along the Gulf Coast are getting a break from the IRS. Taxpayers affected by Katrina, Rita and Wilma have an extra six months, until October 16th, to decide how they want to claim their losses. There are a number of new tax laws covering hurricane victims. They can be found under help for hurricane victims at irs.gov.

And despite the sobering affect of Katrina, New Orleans is planning its biggest party of the year. Mardi Gras gets underway next week and the city hopes the celebration will provide the psychological and economic boost it desperately needs.

Joining us in New Orleans, Steve Perry, CEO and president of the New Orleans Convention and Visitors Bureau. Good to see you, Steve.

J. STEPHEN PERRY, N.O. CONV. & VISITORS BUREAU: Good morning.

WHITFIELD: So if most folks in New Orleans really do equate Mardi Gras with normalcy, and there's nothing really that normal these days post-Katrina, what is the barometer for a successful Mardi Gras or a barometer for normalcy these days, Steve?

PERRY: Well, the barometer for normalcy is changing all the time. We are getting back to normal in one part of the city. We really here are a tale of two cities. We have the outlying neighborhoods that have almost incomprehensible damage. They're going to take a long time to come back and have tremendous struggles.

But the historic core of the city is open and thriving and vibrant again and, frankly, we bear a huge burden, a huge obligation to all of our residents around the country to get the tourism industry back up and going, because it provides the funding and the tax base that makes this city work. So Mardi Gras is really the kickoff of that, and we're pretty excited about it.

WHITFIELD: And so how does the outlook, you know, look? I mean, does it look like, you know, folks from out of town are coming in town and filling up these hotels, getting ready for Mardi Gras?

PERRY: Fredricka, we're going to have over 25,000 hotel rooms open. We're going to be sold out, we think, by the time Mardi Gras comes, especially the Friday and Saturday nights of Mardi Gras weekend. We're expecting several hundred thousand people. Very interestingly, a lot of the engineering teams and FEMA workers and construction folks that are in the city helping with the recovery are inviting their friends and families down to stay with them.

We're expecting tens of thousands of our residents to drive back from Dallas and Baton Rouge and Lafayette and Houston to participate at least a day or two and for all of the locals here, this may be the most emotional Mardi Gras in our history because it's us planting the flag in the ground that New Orleans has survived and it's back.

WHITFIELD: And so what are you gauging from some of those New Orleanians, those who have decided to come back, who are able to come back and live there, at least temporarily. What are you gauging from them as to how excited they are or encouraged that they might be about Mardi Gras?

PERRY: You know, there's a palpable sense of excitement from everyone here, from every neighborhood, from all of the folks in the city, because they know that this 150th anniversary of Mardi Gras, it's a celebration, a reaffirmation of the culture and the fact that this city took a beating but came back not only in a resilient way but is, in fact, celebrating its history.

And it also kicks off the economics of New Orleans, because one- third of our city's budget is driven by the hospitality industry. The most patriotic thing an American can do this year is come to see New Orleans, come visit, come to a convention, come to a meeting. And Mardi Gras kicks off and sends that message all over the world.

WHITFIELD: So Steve, you can't help but say but this is kind of strange. We just ran a piece from Sean Callebs about this young family man who is living out of his truck there, while he's trying to work and ...

PERRY: Right.

WHITFIELD: ... he's one of the bus drivers there in the city. You can't tell me he's one of the people from New Orleans who is excited about Mardi Gras who is going to be out there throwing beads and being excited about this Mardi Gras Carnivale that takes place every year because the circumstances just aren't right for everyone right now.

PERRY: No, and it really isn't going to be right and we don't expect it to be right but for a lot of folks, you know, Mardi Gras is an escape from the pressures and the burdens of everyday life. And for a lot of folks this year the celebration's not going to be the kind of joyous, outward celebration as much as the satisfaction that you know what? We are making it.

For folks like Melvin, they have burdens that you and I just can't comprehend, and it is going to be a long road back, and Mardi Gras itself is so critical to us getting the economics of the city back up, so that we can get the housing, we can get the transportation systems back for people like Melvin. WHITFIELD: All right. Stephen Perry, CEO and president of the New Orleans Convention and Visitors Bureau, thanks so much for being with us.

PERRY: Thanks, Fredricka.

WHITFIELD: And hopefully Mardi Gras is all that many people are expecting it will be this year and some.

PERRY: We're looking forward to everyone coming.

WHITFIELD: All right. Thanks so much.

The 2006 winter games are underway, way across the pond. After the break, we're live in Torino, Italy for the latest on the Winter Olympics.

And later, a celebrity stylist gives Ken, Barbie Ken -- get him -- a makeover. Ken's a metrosexual now, but will Barbie like that? We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: The net is widening in Operation Slapshot. A second New Jersey state trooper has now been suspended in connection with the illegal gambling ring probe, but the highest profile name attached to the investigation is hockey great Wayne Gretzky. He's not accused of any wrongdoing but the attention he's getting is unlike anything he's ever experienced. Mary Snow explains.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: ... is pressured. Gretzky in front!

MARY SNOW, CNN CORRESPONDENT (voice-over): With a nickname like "The Great One," and four Stanley Cup titles, Wayne Gretzky has always enjoyed royalty status in the hockey world. His actress and model wife, Janet Jones Gretzky, added to his fame.

With questions about an alleged gambling ring involving one of his coaches and headline like "Betzky," the hockey star is facing the sort of attention that he has never had in his career.

WAYNE GRETZKY, PHOENIX COYOTES HEAD COACH: I didn't bet. That didn't happen. It's not going to happen. It hasn't happened. It's not something that I have done.

SNOW: Gretzky and his wife, Janet, haven't been accused of any wrongdoing in what New Jersey police dubbed "Operation Slapshot," an illegal sports gambling ring. Gretzky's wife's spokesman says she is a possible witness in the illegal betting investigation.

The Associated Press reported, but CNN hasn't independently confirmed, that the police obtained a wiretap where Gretzky asks about how his wife can be avoid be implicated in the probe. Gretzky did not answers questions about the wiretaps Thursday and spoke about his future plans.

GRETZKY: I'm not going anywhere. I'm still going to coach the Phoenix Coyotes. I have done nothing wrong, or nothing that has to do with any sort of -- on the lines of betting.

SNOW: Gretzky's wife came to her husband's defense Thursday. She released a statement saying, "At no time did I ever place a wager on my husband's behalf." She says, "Other than the occasional horse race," her husband does not bet on any sports.

Among three people facing charges, including promoting, gambling and money-laundering is Gretzky's assistant coach of the Phoenix Coyotes, Rick Tocchet. His lawyer says the charges are categorically false. Lawyers for all three men say they will fight the charges.

(on camera): The National Hockey League says it's hired a former prosecutor to conduct its own investigation into allegations made as part of Operation Slapshot.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: And just in time for Valentine's Day, a famous couple reunited. Will Barbie like Ken's new look? I know you're on pins and needles. We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: In Italia, a worldwide celebration on ice. The winter games are now underway in Torino ,in the Italian Alps. More than 200 American athletes are among the hopeful Olympians taking part in this once every four-year winter spectacle.

CNN's Larry Smith is joining us now from Torino. Buon giorno!

LARRY SMITH, CNN CORRESPONDENT: Buon giorno, Fredricka, from Torino here, and a wonderful -- very chilly, but a beautiful evening here in northern Italy.

We were wondering maybe who might be the American star of these games. One name, certainly, jumps out at the very start as Chad Hedrick. He is trying to five gold medals and tie Eric Heiden's mark set in speed skating back in 1980. He has already won his first gold medal in the 5,000 meter speed skate.

Hedrick, in fact, was so dominant, he flirted with world record time before settling for a time that was .02 seconds shy of the Olympic record set four years ago in Salt Lake City, as Hedrick again wins gold.

By the way, Eric Heiden won five individual races back in 1980. Well, if Hedrick is to equal that mark, he'll have to win four individual races and also the team pursuit which is new to the Torino Winter Olympics. Now, staying on the ice, if you will, but figure skating instead, Michelle Kwan, the earliest story of the day. The nine-time U.S. champion and five-time world figure skating champion cut short her practice earlier today, still having trouble with that sore groin that kept her out of the national competition.

And she is only here because she got a medical exemption when she went through a private workout before the committee that makes those decisions and they deemed her healthy enough to compete, but she struggled with several of her jumps. She did not go through her short program as expected.

And while she did not rule out 100 percent of withdrawing from these games, she was steadfast in saying she does plan to stay in and plans to keep alive her hope for that elusive Olympic gold medal, as this is probably her final Olympics at 25 years old.

Michelle Kwan plans to continue despite her injury problems that she has had and certainly it appears still plague her even to this day. Fredricka, let's go back to you.

WHITFIELD: Interesting. So, Larry, I wonder would the team have some sort of cutoff point when they say, you know what? Your injury is not getting any better, let's let the alternate, Miss Hughes, you know, fill your slot?

SMITH: Well, and that's what's certainly in that sense even a little more complicated than that because it's not even the USOC's decision. As we understand it, the International Olympic Committee would have to come in and make that determination in terms of who would replace her.

Could it be Emily Hughes, the younger sister of Sarah Hughes, the 2002 gold medallist in figure skating in Salt Lake? Emily Hughes was next in line before Kwan received this exemption. Could it be her or someone else we don't know? You've got to have time to have that person come to Torino and get prepared with their program to skate if she can't go.

WHITFIELD: Oh my gosh. Wow. The plot thickens. OK, Larry Smith, thank you so much from Torino.

SMITH: OK, sure.

WHITFIELD: Well, for continuing coverage of the 2006 Winter Olympics log onto CNN.com/olympics. It's your guide to the games and we'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: Well unlike Brad and Jen, two other old flames, Barbie and Ken, are getting back together. CNN's Jeanne Moos explains.

(BEGIN VIDEOTAPE) JEANNE MOOS, CNN CORRESPONDENT (voice-over): We've all had looks we're ashamed of and Barbie's boy toy Ken is certainly no exception, be it the lavender look or Mod Hair Ken.

UNIDENTIFIED FEMALE: Put a mustache on Ken or sideburns.

PHILLIPS BLOCH, STYLIST: Any time he has anything with wheels on it gets a little scary to me.

MOOS: Who better to give Ken a makeover than a flamboyant stylist who had dressed stars ranging from Johnny Depp to Pierce Brosnan, and who readily admits he goes way back with Barbie.

BLOCH: Since we were little kids, we were like this.

MOOS: Voila! The new Ken!

BLOCH: This is the more urban, runaround look.

MOOS: Well, actually there are two new Kens, the collector's edition in Italian jeans and leather jacket, and the blonder version that will be sold in stores.

UNIDENTIFIED FEMALE: Oh, my gosh!

MOOS (on camera): Is he manly enough for you?

UNIDENTIFIED MALE: No.

UNIDENTIFIED FEMALE: A little bit feminine-y. But then ...

MOOS: But when you see this one, it makes this one look like Mr. Butch.

(voice-over): The photo shows Ken's last incarnation, back when Barbie dumped him two years ago. Barbie is being outsold in the U.S. by those pouty-lipped Bratz dolls.

(MUSIC)

MOOS: To rejuvenate Barbie, critics say Mattel first announced she and Ken were splitting up, but now they're getting back together. The head of Bratz dolls called it "stupid publicity," and told the "New York Times" "Ken is not going to save Barbie."

The new Ken is described as the kind of guy who does yoga. And girls like that sensitive type.

UNIDENTIFIED FEMALE: Maybe like a Leonardo DiCaprio.

MOOS (on camera): Oh, Leonardo DiCaprio.

(voice-over): Well, actually, Ken's look is Matthew McConaughey meets Orlando Bloom according to his stylist, who made it into the "New York Times" quotation of the day.

BLOCH: Oh, really? I'm the quote of the day? Wow, that's cool.

MOOS: It was cool when we ran into Oscar-nominated actress Virginia Madsen.

VIRGINIA MADSEN, ACTRESS: Oh, my God! It's Jeanne Moos.

MOOS (on camera): No, it's Ken!

MADSEN: Ken? Oh my God, what has happened to you, Ken? He's come out! I know Ken, and Ken is a gay man.

MOOS: You're sure.

MADSEN: He's got streaks in his hair.

(MUSIC)

MOOS (voice-over): Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Oh, poor Ken. I liked his old look way back then. So much more ahead on CNN LIVE SATURDAY. "IN THE MONEY" is next. Here's a preview right now.

JACK CAFFERTY, CNN ANCHOR: Thanks. Coming up on "IN THE MONEY," lock your doors. Bush's 2007 budget is out. We're going to look at the winners and the losers and the number -- they're huge.

Plus, a losing their edge? It's no secret that we're slipping in the sciences. Find out if a new initiative can get us back on firm footing worldwide.

Big solutions for big problems. Financial services vet John Vogel says we've got to clean up corporations, Wall Street and the mutual fund business. We will solve all of those problems when he joins us. All that and more after a quick check of the headlines.

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