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Kerry Unveils Ambitious Plan to Create Jobs; White House Emphasizes Positives in Bush Economic Plan

Aired March 26, 2004 - 14:00   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.


KYRA PHILLIPS, CNN ANCHOR: Pocketbook politics, candidates Kerry and Bush talking taxes and the economy, selling their plans to win your vote.
JEFF KOINANGE, CNN CORRESPONDENT: I'm Jeff Koinange in Rwanda. As the country prepares for a series of commemorations leading up to the tenth anniversary of the genocide, we visit one of the scenes of the massacres. More coming up on LIVE FROM.

K. PHILLIPS: Don't go in the water, words of warning after deadly rip currents arrive in Florida along with Spring Break tourists.

UNIDENTIFIED MALE: Sanctify them by your holy spirit to be the body and blood of Jesus Christ our Lord.

K. PHILLIPS: Hallelujah, woof, woof, (unintelligible) worship at this church has gone to the dogs but the people don't seem to mind.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles worked the early shift today. This hour of CNN's LIVE FROM starts right now.

Homes or jobs, the economy statistic you're trumpeting today depends on whether you're a member or supporter of the Bush administration, record home ownership or a member of supporter of the Kerry campaign, jobs transplanted overseas.

The Democratic presidential nominee to be is pledging ten million new American jobs if he's elected.

As you know, if you've been watching CNN, John Kerry kicked off a series of policy speeches today at Wayne State University in Detroit. Moments earlier, President Bush wrapped up a home ownership event in Albuquerque.

We get the low down on both of those from CNN's Sean Callebs in our Washington Bureau and Suzanne Malveaux at the White House -- Sean, you first.

SEAN CALLEBS, CNN CORRESPONDENT: Well, Kyra, Massachusetts Senator John Kerry is making the issue of employment and American jobs being exported overseas among the cornerstones of his campaign. Kerry unveiling an ambitious plan that he says will create some ten million jobs over a four year span. At that same time he says it will keep jobs from going overseas with massive tax breaks that he claims will not add to the national debt. The polls have repeatedly shown jobs remain the most important issue to voters.

It is no accident that Kerry is detailing his plan in the labor intensive state of Michigan, identified as one of the battleground states in the upcoming general election.

Kerry will outline his proposals in three separate speeches, the first focusing on reforming corporate tax codes to encourage job growth, secondly improve job training skills in an effort to make sure progress and technology does not pass the American worker by in the 21st Century; and lastly, restoring fiscal responsibility, Kerry alleging the Bush administration has, in his words, "squandered $10 trillion and saddled the U.S. with a massive deficit."

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We've gone from record surpluses to record deficits. America cannot afford four more years of a president who is the first president to lose jobs since Herbert Hoover and the Great Depression.

(END VIDEO CLIP)

CALLEBS: Kerry's plans face a series of obstacles even if they are approved, not the least of which politically powerful corporations that benefit from overseas tax breaks that the Senator wants to do away with -- Kyra.

K. PHILLIPS: Sean Callebs, thank you.

Now to the White House, CNN's Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, the Bush camp responded to Kerry's proposal even before he made it official. They are calling this a political proposal, not an economic one. They say a number of things.

First and foremost they say that there would be a $1.7 trillion new government spending over ten years if Kerry's plan was to go into action. Secondly, they say that Kerry's tax incentives won't prevent job outsourcing and third that Kerry's tax break for small businesses is really too small, too brief, to have any real impact that it is simply a gimmick. They have come out hitting hard.

President Bush in Albuquerque, New Mexico. He'll travel on to Phoenix, Arizona. That is where he is highlighting today one of the obvious successes of his economic policy that is of home ownership. It was back in June of 2002 when President Bush announced that he wanted to increase minority home ownership by $5.5 million by the end of the decade.

Well, according to the Labor Department, it is at 68 percent home ownership, minority home ownership around 50 percent. They have an initiative that is trying to close that gap. President Bush today citing there are a number of positive economic indicators according to his plan.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our economy is growing. It's strong and it's getting stronger. Secondly, inflation is low and interest rates are low. Manufacturing activity is up.

The unemployment rate today is lower than the average rate in the 1970s, 1980s and 1990s. New Mexico's unemployment rate is 5.7 percent, down from six percent a year ago. Things are improving. Things are getting better.

(END VIDEO CLIP)

MALVEAUX: And, Kyra, that's the message that you're going to hear over and over. It is part of the White House strategy to emphasize the positive. As you know, polls show that Kerry is leading and when it comes to domestic policy, when it comes to economic policy the White House certainly wants to turn that around -- Kyra.

K. PHILLIPS: Meanwhile, Condoleezza Rice and the 9/11 commission coming up once again. What's the deal now?

MALVEAUX: Well, Dr. Rice has offered to go before the 9/11 commission to answer questions privately, to return to that commission. She is not saying that she will go publicly and testify as the commission would like.

This is something that came up before when she first went before them in February. She answered questions for about four and a half hours, said she was more than willing to come back and that is exactly what happened. It became official yesterday through a letter through the witness counsel.

Very interestingly, the 9/11 commission says of course they will work out the details in the schedule of allowing her to come back but they say they're certainly not going to do it on the White House time table. They certainly don't want to get caught up in the middle of what they call a political game -- Kyra.

K. PHILLIPS: Suzanne Malveaux live at the White House, thank you.

Key congressional Republicans want to declassify testimony given by former White House terrorism adviser Richard Clarke in 2002. Senate Majority Leader Bill Frist says lawmakers want to know whether Clarke lied under oath, either then or before the 9/11 commission this week. Clarke has sharply criticized President Bush's handling of the war on terror.

(BREAKING NEWS)

Live pictures now out of Richmond, Virginia, this coming to us via our affiliate WRIC. It's a fire that's spreading over at least two blocks to other buildings we're told.

The fire has spread to several of the buildings in this area. Smoke, burning debris has spread over several blocks in an area of the VCU academic campus we're told. The fires and smoke have blocked traffic within this area as winds are continuing to blow debris northward toward I-95 right there in the city of Richmond.

The fire started in a four-story apartment building, we are told, under construction near a parking garage and the university bookstore. Richmond fire department officials say it's too early to know the cause of this fire, though explosive sounds were reported before this fire started. It's something we're following via our affiliate WRIC.

Other news across America, a state of emergency declared in Connecticut where an oil tanker crashed and exploded on a major bridge along I-95. Parts of the bridge melted. Traffic in both directions gridlocked and yet another tractor trailer jackknifed along the detour route.

Plans to rescue a whale entangled in a web of fishing lines and buoys have been postponed. The 34-foot yearling named Kingfisher made a dash for the deep off the Carolina coast. It's now out of the reach of the tracking team. Scientists fear that the lines will tighten and kill the whale as it continue to grow.

And investigators won't speculate about what a New York firefighter planned to do with more than 20,000 steroid pills and human growth hormones. Rodney St. Cloud is charged with illegal possession. St. Cloud is a professional bodybuilder and is Mr. April in the 2004 New York Firefighters hunky heroes calendar.

Testimony in the jury room and repeated calls for mistrial, the latest within the past hour. CNN's Allan Chernoff joins us from outside the courthouse in New York -- Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Kyra, it was September 29th of last year when jury selection began in the trial of the former top two executives of Tyco, Dennis Kozlowski and Mark Swartz. Now the judge, after six months, is on the verge of declaring a mistrial.

Just before lunch the jury came out with a note saying that we have ceased to be able to conduct respectful, good faith deliberations. The jury appears to have a very deep division with at least one juror holding out for acquittal of the two defendants.

Now the atmosphere according to two notes that came out yesterday has turned "poisonous" and that there have been accusations thrown back and forth in the jury room.

Earlier today the judge told the jurors to basically play fair. Be nice to each other. Apologize if you can. Then just before lunch he told the jurors relax, take it easy. Tell me after lunch if you think you can continue. Tell me if the rest of the day off would help out and coming back on Monday might help the situation but the judge said with the jury not in the courtroom that he's not optimistic this will go on beyond today. The defense has said this is the very essence of why the judge should call for a mistrial, the jury saying it just can't continue. The prosecution is saying it's premature. Let's give it a little bit more time here.

Mr. Kozlowski and Swartz are both charged with looting Tyco, their former company, to the tune of $600 million by taking unauthorized bonuses, forgiving loans and also illicit stock sales. They are each facing 13 counts of grand larceny -- Kyra.

K. PHILLIPS: Allan Chernoff live from New York, thank you.

In Los Angeles County, thousands of inmates getting get-out-of- jail-free cards. Prisoners are being let out early because there's just no room to keep them but what's that doing to the community?

CNN's Eric Philips is in L.A.

(BEGIN VIDEOTAPE)

ERIC PHILIPS, CNN CORRESPONDENT (voice-over): In Los Angeles County Jail's growing populations plus shrinking budgets equals prisoners being let out early. Sheriff Lee Baca says his budget has been cut $166 million over the past two years forcing him to exercise his legal authority to release thousands of convicted criminals early.

SHERIFF LEE BACA, LOS ANGELES COUNTY: And we're at the break point and we can't do this any longer.

E. PHILIPS: Nearly 50,000 prisoners were released over the last year alone.

UNIDENTIFIED FEMALE: I'm happy. I'm glad to be out.

E. PHILIPS: Many perpetrators of so-called petty crimes, like Derrick Dancy are serving ten percent or less of their sentences. He was in for a parole violation on a grand theft charge.

DERRICK DANCY, RELEASED PRISONER: I was supposed to be in six months, 180 days, and they let me out in ten days.

E. PHILIPS: Critics say the early release program diminishes the goal of law enforcement to clamp down on misdemeanor offenders.

STEVE COOLEY, DISTRICT ATTORNEY: It's turned into a catch and release program here in Los Angeles County when it comes to misdemeanants that have been convicted of misdemeanor crimes.

E. PHILIPS: Sheriff Baca says there is a solution, raise the sales tax by half a cent to help fund the jails which are overcrowded.

BACA: Two dimes a day for the average consumer is not asking a lot of anyone. It's the least pain for the most gain.

E. PHILIPS: Short of that, Baca says he'll continue releasing criminals early perpetuating the revolving door. Many are just re- arrested within 45 days.

Eric Philips, CNN.

(END VIDEOTAPE)

K. PHILLIPS: A passionate confession, detectives say Mel Gibson's movie about Jesus inspired a man to admit murder.

And if you're feeling like you were up to your neck in it, check this guy out, a portrait of the depths of religious devotion. His story straight ahead.

(COMMERCIAL BREAK)

K. PHILLIPS: Four deaths along Florida's beaches all blamed on riptides. Those dangers -- actually rip currents. Those dangerous currents that can sweep even the best swimmers out of shallow water and into deep sea. Today lifeguards along Florida's East and Gulf Coast beaches are warning swimmers to stay out of the water.

With us Captain Vince Canosa, Marine Safety Captain, for the city of Hollywood, Florida. Captain, tell us what the warning is. Obviously it's to stay out of the water. Where exactly is it and why?

VINICE CANOSA, MARINE SAFETY CAPTAIN, HOLLYWOOD, FLORIDA: Well, today we have a red flag for danger and we also are flying our orange flag for rip currents. Today is definitely not a good day to be in the water. We've had northeast winds since Monday, sustaining winds of about 20, 25 miles an hour, so that's the situation we're in right now.

K. PHILLIPS: And I know we're talking -- there's a big difference here between rip currents and riptides and we're talking about rip currents. Explain to our viewers the difference captain.

CANOSA: OK. Well, what a rip current is, is a depression in the sand in between two sandbars and when you have east winds or northeast winds when that water reaches shore it has to recede somewhere, so normally it takes the deepest course and that's usually in between the sandbars and that's what forms the rip current.

K. PHILLIPS: Say you get yourself tied up in a rip current what are you supposed to do?

CANOSA: Well, the main thing is to don't panic and to try to swim parallel to shore. The rip current will eventually take you out past the sandbar where there will be a less of a current and then swim parallel to shore and then you'll be OK at that point.

K. PHILLIPS: Are you advising tourists and visitors to not even take their vacation to the Florida beaches?

CANOSA: No, that's not the case. You can have a day like today and it's perfectly sunny. You can still enjoy the beach. The main thing we like to stress is before you go in the water always stop and see a lifeguard and ask questions. See where the bad areas are. Ask what flags we're flying. Look for the flags. Most of the beaches up and down south Florida have their warning flags flying each day, so it's important that they would ask questions and see what flags they're flying.

K. PHILLIPS: You know, captain, there's a lot of expert swimmers that would say, hey I am an expert swimmer. I can get out into the water and not worry about this. Your advice?

CANOSA: Well, a day like today even an expert swimmer it's not that enjoyable, so if you're an expert swimmer, fine. Anybody else I don't suggest going in the water.

K. PHILLIPS: Captain Vince Canosa, thank you so much, appreciate your time. I'll still tell my family to head out that way and look for you. Thanks, captain.

CANOSA: Thank you.

K. PHILLIPS: All right.

Well, having conquered American audiences, Mel Gibson's "The Passion of the Christ" is about to stir Britain. The movie opened in London this morning where some churches are handing out free tickets to members. Others urge their congregations to read the book before seeing the movie.

Just how powerful is "The Passion"? Well Houston, Texas authorities say that Dan Leach apparently had gotten away with murder. The hanging death of his pregnant girlfriend had been ruled a suicide but inspired by "The Passion of the Christ" and a conversation with a religious adviser, well detectives say Leach confessed. They say he killed the woman because he didn't want to raise the child.

Speaking of being passionate, a Hindu holy man buried in his religious devotion, literally. Check out what has to be the picture of the day. Well wishers in India are bringing flowers to honor the depths of religious feeling expressed by this man.

He began his ten-day underground meditation on March 20th and he plans to emerge from his hole on the 29th. Now that's dedication head and shoulders above the rest. Sorry, we had to say it.

He's gone from top to bottom and back to the top again. Donald Trump is on top of primetime TV. We'll explore the mystique behind the millions later on LIVE FROM.

DARBY MULLANY: I'm Darby Mullany live from the New York Stock Exchange. Coming up politicians are preaching against outsourcing but are companies listening? I'll have the latest when CNN'S LIVE FROM rolls on after this break.

(COMMERCIAL BREAK)

(BREAKING NEWS) K. PHILLIPS: An update now via our affiliate WRIC in Richmond, Virginia. The winds kicking up making this fire a lot worse in the Richmond area. The fire is actually spreading over at least two blocks of buildings around the VCU academic campus.

We're told the fire has spread to several buildings in that area with smoke and burning debris spreading out through several blocks, the fires and smoke. It blocked traffic in this area. As the winds, like we said, continue to blow harder, the debris is going northward toward I-95 in that city and affecting travel there.

The fire, we're told, started in a four-story apartment building that's under construction near the VCU campus. Right now firefighters say it's too early to know the cause of that fire, though they did hear explosive sounds before this fire started. We're following it.

Eight hundred thousand people massacred, they go back ten years to Rwanda. Well, some villages have yet to recover from those horrifying times. Recently, CNN's Jeff Koinange returned to one village. A word of caution, though, what we're about to show you can be pretty difficult to watch. It's gruesome images of genocide a decade later.

(BEGIN VIDEOTAPE)

KOINANGE: The horrors of the genocide continue to haunt Rwandans ten years later and it's here at this church in a place called (unintelligible). Outside the capital Kigali that's a typical example for it's here that over 5,000 mostly Tutsis were massacred in the space of just seven hours.

And these skulls bear a reminder of what happened on that fateful day. You can see the wounds marked on these skulls, a bullet wound here, a machete wound here, an arrow, a club, all these are stark reminder.

Only about a dozen people survived the massacres on that day and we caught up with two of them, a man who was holed out here with his father, mother, brothers and sisters. They were all massacred leaving him behind.

And a woman, eight months pregnant at the time, hiding out with her husband and two daughters. She is the only one who survived, gave birth a month later to a boy who is nearly ten years old.

And as the country prepares to commemorate the genocide in the coming days, many here are left saying that they are willing to forgive the killers but they're not willing to forget what happened on that day.

Jeff Koinange CNN, (unintelligible), Rwanda.

(END VIDEOTAPE)

(COMMERCIAL BREAK) K. PHILLIPS: Well, the outsourcing debate rages on. Despite the public outcry, American companies are going ahead with plans to ship more jobs overseas. Darby Mullany joins us live from the New York Stock Exchange with the story, hi Darby.

MULLANY: Hi, Kyra.

A very interesting report out on outsourcing today. Despite the backlash from politicians and the public, outsourcing is here to stay and it's even on the rise. That's according to a new survey of companies out.

It shows that 86 percent expect to send more technology jobs overseas in the next 12 months. That's compared with 32 percent just two years ago but the survey consulting firm Diamond Cluster also says that most executives are taking a more cautious approach to outsourcing. They're increasingly worried about upsetting the public and their own workers.

With more than eight million Americans unable to find work, companies are being pressured to stop shipping jobs abroad but many companies feel they have no choice. They say they're constantly under pressure to cut costs and, if they don't, profits will fall and so will their stock price -- Kyra.

K. PHILLIPS: All right, Darby. How are things looking on Wall Street?

MULLANY: Well, it's been a pretty choppy session. Stocks are struggling to hold on to some small gains extending yesterday's big rally. Checking the market numbers right now, the Dow Industrials are up 28 and a half points and the NASDAQ composite is just slightly higher.

Investors are also mulling over some mostly upbeat economic reports, among them consumer sentiment improved and personal income are on the rise. That is the latest from Wall Street.

Coming up the fight between two big U.S. airlines is intensifying. I'll give you the blow-by-blow later this hour. CNN LIVE FROM will be right back.

(COMMERCIAL BREAK)

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Aired March 26, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Pocketbook politics, candidates Kerry and Bush talking taxes and the economy, selling their plans to win your vote.
JEFF KOINANGE, CNN CORRESPONDENT: I'm Jeff Koinange in Rwanda. As the country prepares for a series of commemorations leading up to the tenth anniversary of the genocide, we visit one of the scenes of the massacres. More coming up on LIVE FROM.

K. PHILLIPS: Don't go in the water, words of warning after deadly rip currents arrive in Florida along with Spring Break tourists.

UNIDENTIFIED MALE: Sanctify them by your holy spirit to be the body and blood of Jesus Christ our Lord.

K. PHILLIPS: Hallelujah, woof, woof, (unintelligible) worship at this church has gone to the dogs but the people don't seem to mind.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles worked the early shift today. This hour of CNN's LIVE FROM starts right now.

Homes or jobs, the economy statistic you're trumpeting today depends on whether you're a member or supporter of the Bush administration, record home ownership or a member of supporter of the Kerry campaign, jobs transplanted overseas.

The Democratic presidential nominee to be is pledging ten million new American jobs if he's elected.

As you know, if you've been watching CNN, John Kerry kicked off a series of policy speeches today at Wayne State University in Detroit. Moments earlier, President Bush wrapped up a home ownership event in Albuquerque.

We get the low down on both of those from CNN's Sean Callebs in our Washington Bureau and Suzanne Malveaux at the White House -- Sean, you first.

SEAN CALLEBS, CNN CORRESPONDENT: Well, Kyra, Massachusetts Senator John Kerry is making the issue of employment and American jobs being exported overseas among the cornerstones of his campaign. Kerry unveiling an ambitious plan that he says will create some ten million jobs over a four year span. At that same time he says it will keep jobs from going overseas with massive tax breaks that he claims will not add to the national debt. The polls have repeatedly shown jobs remain the most important issue to voters.

It is no accident that Kerry is detailing his plan in the labor intensive state of Michigan, identified as one of the battleground states in the upcoming general election.

Kerry will outline his proposals in three separate speeches, the first focusing on reforming corporate tax codes to encourage job growth, secondly improve job training skills in an effort to make sure progress and technology does not pass the American worker by in the 21st Century; and lastly, restoring fiscal responsibility, Kerry alleging the Bush administration has, in his words, "squandered $10 trillion and saddled the U.S. with a massive deficit."

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We've gone from record surpluses to record deficits. America cannot afford four more years of a president who is the first president to lose jobs since Herbert Hoover and the Great Depression.

(END VIDEO CLIP)

CALLEBS: Kerry's plans face a series of obstacles even if they are approved, not the least of which politically powerful corporations that benefit from overseas tax breaks that the Senator wants to do away with -- Kyra.

K. PHILLIPS: Sean Callebs, thank you.

Now to the White House, CNN's Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, the Bush camp responded to Kerry's proposal even before he made it official. They are calling this a political proposal, not an economic one. They say a number of things.

First and foremost they say that there would be a $1.7 trillion new government spending over ten years if Kerry's plan was to go into action. Secondly, they say that Kerry's tax incentives won't prevent job outsourcing and third that Kerry's tax break for small businesses is really too small, too brief, to have any real impact that it is simply a gimmick. They have come out hitting hard.

President Bush in Albuquerque, New Mexico. He'll travel on to Phoenix, Arizona. That is where he is highlighting today one of the obvious successes of his economic policy that is of home ownership. It was back in June of 2002 when President Bush announced that he wanted to increase minority home ownership by $5.5 million by the end of the decade.

Well, according to the Labor Department, it is at 68 percent home ownership, minority home ownership around 50 percent. They have an initiative that is trying to close that gap. President Bush today citing there are a number of positive economic indicators according to his plan.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our economy is growing. It's strong and it's getting stronger. Secondly, inflation is low and interest rates are low. Manufacturing activity is up.

The unemployment rate today is lower than the average rate in the 1970s, 1980s and 1990s. New Mexico's unemployment rate is 5.7 percent, down from six percent a year ago. Things are improving. Things are getting better.

(END VIDEO CLIP)

MALVEAUX: And, Kyra, that's the message that you're going to hear over and over. It is part of the White House strategy to emphasize the positive. As you know, polls show that Kerry is leading and when it comes to domestic policy, when it comes to economic policy the White House certainly wants to turn that around -- Kyra.

K. PHILLIPS: Meanwhile, Condoleezza Rice and the 9/11 commission coming up once again. What's the deal now?

MALVEAUX: Well, Dr. Rice has offered to go before the 9/11 commission to answer questions privately, to return to that commission. She is not saying that she will go publicly and testify as the commission would like.

This is something that came up before when she first went before them in February. She answered questions for about four and a half hours, said she was more than willing to come back and that is exactly what happened. It became official yesterday through a letter through the witness counsel.

Very interestingly, the 9/11 commission says of course they will work out the details in the schedule of allowing her to come back but they say they're certainly not going to do it on the White House time table. They certainly don't want to get caught up in the middle of what they call a political game -- Kyra.

K. PHILLIPS: Suzanne Malveaux live at the White House, thank you.

Key congressional Republicans want to declassify testimony given by former White House terrorism adviser Richard Clarke in 2002. Senate Majority Leader Bill Frist says lawmakers want to know whether Clarke lied under oath, either then or before the 9/11 commission this week. Clarke has sharply criticized President Bush's handling of the war on terror.

(BREAKING NEWS)

Live pictures now out of Richmond, Virginia, this coming to us via our affiliate WRIC. It's a fire that's spreading over at least two blocks to other buildings we're told.

The fire has spread to several of the buildings in this area. Smoke, burning debris has spread over several blocks in an area of the VCU academic campus we're told. The fires and smoke have blocked traffic within this area as winds are continuing to blow debris northward toward I-95 right there in the city of Richmond.

The fire started in a four-story apartment building, we are told, under construction near a parking garage and the university bookstore. Richmond fire department officials say it's too early to know the cause of this fire, though explosive sounds were reported before this fire started. It's something we're following via our affiliate WRIC.

Other news across America, a state of emergency declared in Connecticut where an oil tanker crashed and exploded on a major bridge along I-95. Parts of the bridge melted. Traffic in both directions gridlocked and yet another tractor trailer jackknifed along the detour route.

Plans to rescue a whale entangled in a web of fishing lines and buoys have been postponed. The 34-foot yearling named Kingfisher made a dash for the deep off the Carolina coast. It's now out of the reach of the tracking team. Scientists fear that the lines will tighten and kill the whale as it continue to grow.

And investigators won't speculate about what a New York firefighter planned to do with more than 20,000 steroid pills and human growth hormones. Rodney St. Cloud is charged with illegal possession. St. Cloud is a professional bodybuilder and is Mr. April in the 2004 New York Firefighters hunky heroes calendar.

Testimony in the jury room and repeated calls for mistrial, the latest within the past hour. CNN's Allan Chernoff joins us from outside the courthouse in New York -- Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Kyra, it was September 29th of last year when jury selection began in the trial of the former top two executives of Tyco, Dennis Kozlowski and Mark Swartz. Now the judge, after six months, is on the verge of declaring a mistrial.

Just before lunch the jury came out with a note saying that we have ceased to be able to conduct respectful, good faith deliberations. The jury appears to have a very deep division with at least one juror holding out for acquittal of the two defendants.

Now the atmosphere according to two notes that came out yesterday has turned "poisonous" and that there have been accusations thrown back and forth in the jury room.

Earlier today the judge told the jurors to basically play fair. Be nice to each other. Apologize if you can. Then just before lunch he told the jurors relax, take it easy. Tell me after lunch if you think you can continue. Tell me if the rest of the day off would help out and coming back on Monday might help the situation but the judge said with the jury not in the courtroom that he's not optimistic this will go on beyond today. The defense has said this is the very essence of why the judge should call for a mistrial, the jury saying it just can't continue. The prosecution is saying it's premature. Let's give it a little bit more time here.

Mr. Kozlowski and Swartz are both charged with looting Tyco, their former company, to the tune of $600 million by taking unauthorized bonuses, forgiving loans and also illicit stock sales. They are each facing 13 counts of grand larceny -- Kyra.

K. PHILLIPS: Allan Chernoff live from New York, thank you.

In Los Angeles County, thousands of inmates getting get-out-of- jail-free cards. Prisoners are being let out early because there's just no room to keep them but what's that doing to the community?

CNN's Eric Philips is in L.A.

(BEGIN VIDEOTAPE)

ERIC PHILIPS, CNN CORRESPONDENT (voice-over): In Los Angeles County Jail's growing populations plus shrinking budgets equals prisoners being let out early. Sheriff Lee Baca says his budget has been cut $166 million over the past two years forcing him to exercise his legal authority to release thousands of convicted criminals early.

SHERIFF LEE BACA, LOS ANGELES COUNTY: And we're at the break point and we can't do this any longer.

E. PHILIPS: Nearly 50,000 prisoners were released over the last year alone.

UNIDENTIFIED FEMALE: I'm happy. I'm glad to be out.

E. PHILIPS: Many perpetrators of so-called petty crimes, like Derrick Dancy are serving ten percent or less of their sentences. He was in for a parole violation on a grand theft charge.

DERRICK DANCY, RELEASED PRISONER: I was supposed to be in six months, 180 days, and they let me out in ten days.

E. PHILIPS: Critics say the early release program diminishes the goal of law enforcement to clamp down on misdemeanor offenders.

STEVE COOLEY, DISTRICT ATTORNEY: It's turned into a catch and release program here in Los Angeles County when it comes to misdemeanants that have been convicted of misdemeanor crimes.

E. PHILIPS: Sheriff Baca says there is a solution, raise the sales tax by half a cent to help fund the jails which are overcrowded.

BACA: Two dimes a day for the average consumer is not asking a lot of anyone. It's the least pain for the most gain.

E. PHILIPS: Short of that, Baca says he'll continue releasing criminals early perpetuating the revolving door. Many are just re- arrested within 45 days.

Eric Philips, CNN.

(END VIDEOTAPE)

K. PHILLIPS: A passionate confession, detectives say Mel Gibson's movie about Jesus inspired a man to admit murder.

And if you're feeling like you were up to your neck in it, check this guy out, a portrait of the depths of religious devotion. His story straight ahead.

(COMMERCIAL BREAK)

K. PHILLIPS: Four deaths along Florida's beaches all blamed on riptides. Those dangers -- actually rip currents. Those dangerous currents that can sweep even the best swimmers out of shallow water and into deep sea. Today lifeguards along Florida's East and Gulf Coast beaches are warning swimmers to stay out of the water.

With us Captain Vince Canosa, Marine Safety Captain, for the city of Hollywood, Florida. Captain, tell us what the warning is. Obviously it's to stay out of the water. Where exactly is it and why?

VINICE CANOSA, MARINE SAFETY CAPTAIN, HOLLYWOOD, FLORIDA: Well, today we have a red flag for danger and we also are flying our orange flag for rip currents. Today is definitely not a good day to be in the water. We've had northeast winds since Monday, sustaining winds of about 20, 25 miles an hour, so that's the situation we're in right now.

K. PHILLIPS: And I know we're talking -- there's a big difference here between rip currents and riptides and we're talking about rip currents. Explain to our viewers the difference captain.

CANOSA: OK. Well, what a rip current is, is a depression in the sand in between two sandbars and when you have east winds or northeast winds when that water reaches shore it has to recede somewhere, so normally it takes the deepest course and that's usually in between the sandbars and that's what forms the rip current.

K. PHILLIPS: Say you get yourself tied up in a rip current what are you supposed to do?

CANOSA: Well, the main thing is to don't panic and to try to swim parallel to shore. The rip current will eventually take you out past the sandbar where there will be a less of a current and then swim parallel to shore and then you'll be OK at that point.

K. PHILLIPS: Are you advising tourists and visitors to not even take their vacation to the Florida beaches?

CANOSA: No, that's not the case. You can have a day like today and it's perfectly sunny. You can still enjoy the beach. The main thing we like to stress is before you go in the water always stop and see a lifeguard and ask questions. See where the bad areas are. Ask what flags we're flying. Look for the flags. Most of the beaches up and down south Florida have their warning flags flying each day, so it's important that they would ask questions and see what flags they're flying.

K. PHILLIPS: You know, captain, there's a lot of expert swimmers that would say, hey I am an expert swimmer. I can get out into the water and not worry about this. Your advice?

CANOSA: Well, a day like today even an expert swimmer it's not that enjoyable, so if you're an expert swimmer, fine. Anybody else I don't suggest going in the water.

K. PHILLIPS: Captain Vince Canosa, thank you so much, appreciate your time. I'll still tell my family to head out that way and look for you. Thanks, captain.

CANOSA: Thank you.

K. PHILLIPS: All right.

Well, having conquered American audiences, Mel Gibson's "The Passion of the Christ" is about to stir Britain. The movie opened in London this morning where some churches are handing out free tickets to members. Others urge their congregations to read the book before seeing the movie.

Just how powerful is "The Passion"? Well Houston, Texas authorities say that Dan Leach apparently had gotten away with murder. The hanging death of his pregnant girlfriend had been ruled a suicide but inspired by "The Passion of the Christ" and a conversation with a religious adviser, well detectives say Leach confessed. They say he killed the woman because he didn't want to raise the child.

Speaking of being passionate, a Hindu holy man buried in his religious devotion, literally. Check out what has to be the picture of the day. Well wishers in India are bringing flowers to honor the depths of religious feeling expressed by this man.

He began his ten-day underground meditation on March 20th and he plans to emerge from his hole on the 29th. Now that's dedication head and shoulders above the rest. Sorry, we had to say it.

He's gone from top to bottom and back to the top again. Donald Trump is on top of primetime TV. We'll explore the mystique behind the millions later on LIVE FROM.

DARBY MULLANY: I'm Darby Mullany live from the New York Stock Exchange. Coming up politicians are preaching against outsourcing but are companies listening? I'll have the latest when CNN'S LIVE FROM rolls on after this break.

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(BREAKING NEWS) K. PHILLIPS: An update now via our affiliate WRIC in Richmond, Virginia. The winds kicking up making this fire a lot worse in the Richmond area. The fire is actually spreading over at least two blocks of buildings around the VCU academic campus.

We're told the fire has spread to several buildings in that area with smoke and burning debris spreading out through several blocks, the fires and smoke. It blocked traffic in this area. As the winds, like we said, continue to blow harder, the debris is going northward toward I-95 in that city and affecting travel there.

The fire, we're told, started in a four-story apartment building that's under construction near the VCU campus. Right now firefighters say it's too early to know the cause of that fire, though they did hear explosive sounds before this fire started. We're following it.

Eight hundred thousand people massacred, they go back ten years to Rwanda. Well, some villages have yet to recover from those horrifying times. Recently, CNN's Jeff Koinange returned to one village. A word of caution, though, what we're about to show you can be pretty difficult to watch. It's gruesome images of genocide a decade later.

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KOINANGE: The horrors of the genocide continue to haunt Rwandans ten years later and it's here at this church in a place called (unintelligible). Outside the capital Kigali that's a typical example for it's here that over 5,000 mostly Tutsis were massacred in the space of just seven hours.

And these skulls bear a reminder of what happened on that fateful day. You can see the wounds marked on these skulls, a bullet wound here, a machete wound here, an arrow, a club, all these are stark reminder.

Only about a dozen people survived the massacres on that day and we caught up with two of them, a man who was holed out here with his father, mother, brothers and sisters. They were all massacred leaving him behind.

And a woman, eight months pregnant at the time, hiding out with her husband and two daughters. She is the only one who survived, gave birth a month later to a boy who is nearly ten years old.

And as the country prepares to commemorate the genocide in the coming days, many here are left saying that they are willing to forgive the killers but they're not willing to forget what happened on that day.

Jeff Koinange CNN, (unintelligible), Rwanda.

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(COMMERCIAL BREAK) K. PHILLIPS: Well, the outsourcing debate rages on. Despite the public outcry, American companies are going ahead with plans to ship more jobs overseas. Darby Mullany joins us live from the New York Stock Exchange with the story, hi Darby.

MULLANY: Hi, Kyra.

A very interesting report out on outsourcing today. Despite the backlash from politicians and the public, outsourcing is here to stay and it's even on the rise. That's according to a new survey of companies out.

It shows that 86 percent expect to send more technology jobs overseas in the next 12 months. That's compared with 32 percent just two years ago but the survey consulting firm Diamond Cluster also says that most executives are taking a more cautious approach to outsourcing. They're increasingly worried about upsetting the public and their own workers.

With more than eight million Americans unable to find work, companies are being pressured to stop shipping jobs abroad but many companies feel they have no choice. They say they're constantly under pressure to cut costs and, if they don't, profits will fall and so will their stock price -- Kyra.

K. PHILLIPS: All right, Darby. How are things looking on Wall Street?

MULLANY: Well, it's been a pretty choppy session. Stocks are struggling to hold on to some small gains extending yesterday's big rally. Checking the market numbers right now, the Dow Industrials are up 28 and a half points and the NASDAQ composite is just slightly higher.

Investors are also mulling over some mostly upbeat economic reports, among them consumer sentiment improved and personal income are on the rise. That is the latest from Wall Street.

Coming up the fight between two big U.S. airlines is intensifying. I'll give you the blow-by-blow later this hour. CNN LIVE FROM will be right back.

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