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CNN Live Today
Suicide Attack Kills Seven in Baghdad; Austrian Doctors Determine Viktor Yushchenko Poisoned by Dioxin; Bush Taps Michael Leavitt for HHS
Aired December 13, 2004 - 10:00 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.
DARYN KAGAN, CNN CO-ANCHOR: We look forward to a cabinet appointment being named by President Bush.
RICK SANCHEZ, CNN CO-ANCHOR: And you know what else? In California the jury's still out. They haven't come back with a decision yet as far as the sentence is concerned. It could happen in the next couple of hours. And if it does we'll certainly bring it to you. But here is what we're following right now in the news.
President Bush will name the newest member of his cabinet this hour. A new nominee for Health and Human Services. We're expecting a live announcement from the White House in about 20 minutes.
Also this morning, Mr. Bush says now he plans to sign the new intelligence overhaul bill this Friday. A live report coming up from the White House in just a little bit.
Also, a suicide car bombing outside Baghdad's Green Zone has killed eight people and wounded 15 more. It happened at a checkpoint near the government compound. The latest on a violent 24 hours in Iraq is just minutes away in a live report for you right here.
And it was one year ago today that U.S. troops in Iraq pulled Saddam Hussein out of that underground bunker you've seen. Well, after eight months in hiding, Hussein has found -- was found December 13 near his home in Tikrit. He remains in U.S. custody and is awaiting trial on war crimes.
Ukrainian opposition leader Viktor Yushchenko campaigning again today in Kiev. Doctors examining him again in Austria say there's no doubt that he was poisoned by the chemical dioxin. Blood tests do show levels in his body are 1,000 times higher than normal. A third round of voting in the bitterly contested Ukrainian presidential race is slated for December 26.
Also Electoral College members across the country are meeting today to cast their presidential votes. In Ohio, the swing state that put President Bush over the top, the balloting is expected to meet with protests. A number of groups say President Bush did not win Ohio fairly. Third recount of the vote won't be finished until sometime next week.
And here we go. Just a couple minutes after the hour, I'm Rick Sanchez.
KAGAN: And good morning on this Monday morning, I'm Daryn Kagan.
Another deadly round of violence in Iraq. Seven U.S. Marines have been killed in Iraq, al Anbar province. The fighting Sunday the deadliest single day for U.S. troops in Iraq since October. Today a suicide car bomber set off an explosion in Baghdad.
For more on another violent 24 hours let's check in with CNN's Karl Penhaul who is live from Baghdad.
Karl, hello.
KARL PENHAUL, CNN CORRESPONDENT: Hi there, Daryn. There were, in fact, two bombings in Baghdad this morning. The first in the northern district of Baghdad was one of those common now roadside bombs. That blew up as a U.S. convoy was passing. We're sold that three U.S. soldiers were wounded, along with one Iraqi civilian. And two of the Humvee trucks that they were traveling in were wrecked.
Half an hour later much bigger bomb. This time, a suicide car bomb at one of the checkpoints to the Green Zone. That's the center, the fortified center that houses the U.S. administration here and also the Iraqi interim government. Police tell us that eight people were killed in that blast, and at least 15 others were wounded. Unclear what the identities of the victims were, but this entry point is one that is commonly used by Iraqi contractors showing up for work.
This blast, in fact was about a mile away from another one 10 days ago, a larger one 10 days ago in which 16 people were killed. This just goes to show how difficult it is even to secure the most fortified compound in the whole of Iraq.
Then on Sunday, and in fact, we only got the reports of this today. But it was actually in fighting on Sunday that seven U.S. Marines were killed in two separate incidents we're told in western al Anbar province. That's the province that is home to the rest of towns of Falluja and Ramadi. The Marines haven't explained what circumstances these Marines were killed in. But insurgent action does continue there despite last month's all-out assault on the city of Falluja -- Daryn.
KAGAN: Karl Penhaul with the latest from Baghdad. Thank you.
SANCHEZ: From Washington this morning like an almost finished jigsaw puzzle in need of two more pieces to fit, President Bush is almost finished filling his cabinet. There's that graphic that we've prepared for you. With current occupants or other nominees still missing, our leaders to replace outgoing Homeland Security Secretary Tom Ridge.
And this hour, we're going to learn who Mr. Bush will tap to replace Tommy Thompson at the Department of Health and Human Services. In fact, we learned that just moments ago.
The president hopes to find scandal free nominees to fill these posts. This after Mr. Bush's pick to lead the Department of Homeland Security, Bernard Kerik, backed out because of questionable immigration status of a nanny who once worked for him, among other things possibly.
Our White House correspondent Dana Bash has more.
(BEGIN VIDEOTAPE)
DANA BASH, CNN WHITE HOUSE CORRESPONDENT (on camera): The White House is defending its vetting process for cabinet picks, saying Bernard Kerik is to blame for not disclosing earlier the legal problems that sunk his nomination. But Bush officials are breathing a sigh of relief that this all happened now, and not later during what would have likely been a bruising confirmation process.
(voice-over): The president, at church, heard a sermon about Christmas. The date his aides are using as a goalpost for finding a new candidate to run the Homeland Security Department. But the hand wringing still isn't over about what went wrong with the first Bush choice Bernard Kerik.
SEN. BYRON DORGAN (D), NORTH DAKOTA: There's something wrong when you announce the head of, I think, one of the most important agencies in our government to protect this country against terrorism, and discover that you've missed the significant piece of the vetting process.
BASH: The White House dropped the ball say some Democrats, by not knowing its pick to oversee immigration had a nanny with questionable legal status. Embarrassed, even annoyed, Bush officials deny rushing to appoint the street cop turned 9/11 hero, insisting Kerik was asked if he had problems like this.
SEN. SUSAN COLLINS (R), MAINE: It is disturbing that apparently there was information in his background that was not shared with the White House. I know for certainty that there are questions asked about: domestic employees, financial matters, and legal disputes.
BASH: The president's moving on says top aides, who suggest he's taking another look at candidates considered the first time around. Like the department head of Border Security, Asa Hutchinson, EPA commissioner, like Leavitt, and the president's Homeland Security adviser Frances Townsend.
Some say Mr. Bush should consider someone with broader experience.
SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: Good morning.
BASH: And one senator, a Democrat, is passing many Washington lips.
UNIDENTIFIED MALE: If you wanted to go to the other side, you could go to Joe Lieberman.
UNIDENTIFIED MALE: Senator Lieberman.
COLLINS: Joe Lieberman.
SEN. JON CORZINE, (D), NEW JERSEY: Joe Lieberman.
UNIDENTIFIED MALE: Joe would be great. But I'd like to find a Republican there a blue state. Maybe we could pick up a seat.
BASH: All kidding aside, Republican sources do say the president has considered asking Lieberman to join his administration. A source close to the Democratic senator noted, he's been careful not to openly criticize the White House recently, and he'd likely take a job if he's asked.
(END VIDEOTAPE)
SANCHEZ: And as we mentioned at the top of the newscast, President Bush will name his pick to replace Tommy Thompson at the Department of Health and Human Services oh, in about 15 minutes or so. What happens then? We'll, of course, bring it to you live.
Now, CNN has also learned of another potential job opening in a top government post. NASA's administrator Sean O'Keefe is expected to announce his resignation today. Sources at NASA say that O'Keefe is going to accept an offer from Louisiana State University, as that school's chancellor.
KAGAN: Let's go to California now. Jurors are meeting again today to decide the fate of convicted murderer Scott Peterson. The group took the weekend off after a long day of deliberating his punishment on Friday.
Our Rusty Dornin has the latest.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Expectations here ran high. The jury that delivered such a quick verdict in the guilt phase would do the same to decide Scott Peterson's punishment for killing his pregnant wife Laci. But after deliberating for nearly nine hours, it was back to the hotel for jury members, and a weekend of restricted TV watching and not much else. Failure to reach a verdict before the weekend may not be a good sign.
It's probably leaning one way or the other. But the people might have some strong feelings about it. And we might be looking for a hung jury.
DORNIN: A hung jury would mean this panel would be dismissed and a new one selected. The new jury would have to hear all the evidence, not just a replay of the penalty phase. Or the more likely eventuality, prosecutors could decide to drop the death penalty. And Peterson would automatically be sentenced to life in prison without parole.
At the courthouse, the wait turned into the local event, both for journalists and the curious. Court watcher Allen Leader sat through 100 days of the trial. His friend Bob Espinoza watched the proceedings at least 40 days, and felt he had to be here for the final judgment. BOB ESPINOZA, COURT WATCHER: You're going to see it on the news and whatever. And you just want to be part of it and just to see the reaction.
DORNIN: Reaction to the life or death punishment for the man who killed his wife and unborn son two years ago this month.
Rusty Dornin, Redwood City, California.
(END VIDEOTAPE)
KAGAN: There's also this legal matter out of California, new information in a child molestation case against Michael Jackson. A source telling CNN that fingerprints belonging to both Jackson and his accuser were found on pornographic magazines seized from Jackson's Neverland ranch.
We are told investigators found the magazines during a raid last year. It is not clear what role that kind of evidence could play if it's admitted into court. Jackson has pleaded not guilty to charges of child molestation.
SANCHEZ: It's an amazing case of poisoning. Ukraine's election drama continues. The opposition candidate speaks out after doctors confirm that poison was the cause of his facial disfigurement.
KAGAN: Plus, the fed meets tomorrow and signs point to another rate hike. We will talk about what this could mean for you at home.
SANCHEZ: And then later, it's the carol that took the spiritual out of Christmas. Doctor Elmo, after a grandma got run over by a reindeer will join us live.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
NARRATOR: Michael Lynton is untangling a web of digital challenges as head of Sony Pictures Entertainment, the company behind the "Spiderman" movies. At the helm for nearly a year, Lynton is extending the Sony's Connect online music service to video in 2005. And with the impending acquisition of MGM, Sony gains access to the world's largest modern film library. SPE is also benefiting from the expected, record-breaking sales of the new Seinfeld DVDs, as is Time- Warner, parent company of CNN.
(END VIDEO CLIP)
KAGAN: A live -- well, interesting. A live picture of the White House there for you. About five minutes from now, we expect President Bush to come out and make an announcement; another cabinet appointee that he would like to nominate. And we will bring that announcement to you live.
Meanwhile, some world news for you. Ukrainian opposition leader Viktor Yushchenko is back in Kiev this morning. He left the Austrian clinic where doctors say tests conclusively prove somebody tried to poison him. Yushchenko says he believes Ukrainian authorities were behind the poisoning. And the prosecutor general has reopened a probe into the mysterious illness.
Our Moscow bureau chief Jill Dougherty has more.
(BEGIN VIDEOTAPE)
JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF (voice-over): His doctors by his side, his American-born wife, Katrina, acting as interpreter, Viktor Yushchenko gave no details about how he thought he was poisoned with dioxin, or who might have done it.
VIKTOR YUSHCHENKO, OPPOSITION LEADER, UKRAINE (through translator): I am very happy to be alive in this world today. And I thank these people for this.
DOUGHERTY: But one of his physicians shed new light, saying the poison was not detectable in routine forensic tests, and thanking his medical colleagues around the world for working on a complex case.
DR. MICHAEL ZIMPFER, RUDOLFINERHAUS HOSPITAL: Regardless of any political background who were helping us, who were consulting us, who are -- again to clarify the difficult Yushchenko illness that has not been observed anywhere else beforehand.
DOUGHERTY: Yushchenko fell ill in September as he was beginning his presidential election campaign. A team of doctors in Vienna said Saturday there is no doubt he was poisoned with the toxic chemical dioxin. That it was likely administered orally, in food or a liquid like soup, or most likely by an unnamed third party.
Yushchenko's supporters believe he may have been poisoned at a dinner with the leadership of the Ukrainian Security Service. And claim the plot may have been carried out with help from outside Ukraine; but have provided no evidence.
As he left the Vienna clinic, Yushchenko said his Orange Revolution had already turned Ukraine into a different country. And the regime in power for 14 years is now, quote, "living its last days."
YUSHCHENKO (through translator): We hadn't seen anything like that for the past 100 years. I think it would be appropriate to compare this to the fall of the Soviet Union or the fall of the Berlin Wall.
DOUGHERTY (on camera): Yushchenko now returns to Ukraine for the repeat of the runoff election that was canceled by Ukraine's Supreme Court because of massive fraud. Doctors say he is recovering from the poisoning, but could encounter physical problems down the road. However, his face may take years to return to normal.
Jill Dougherty, CNN, Moscow. (END VIDEOTAPE)
SANCHEZ: Interestingly enough, Yushchenko's chief of staff says that he's concerned and certainly convinced as well, that this plot against his boss has been in the works for months. In fact here's how he stated it earlier right here on CNN.
(BEGIN VIDEO CLIP)
OLEH RYBACHUK, YUSHCHENKO'S CHIEF OF STAFF: Somewhere late July, I start getting warning because he's the most popular Ukrainian politician. I was started getting warning that he would be taken care of, as they say. I received this information from top-ranking ex- Secret Service police officers. And they've been telling me that poisoning was No. 1 issue.
(END VIDEO CLIP)
SANCHEZ: Now, the Ukraine's prosecutor general has reopened the investigation into Yushchenko's illness. The candidate is asking investigators to hold off until after the December 26 presidential runoff.
KAGAN: We're going to hold off just a couple of minutes here. President Bush expected to make an announcement any moment. We'll go live to the White House. He is expected to announce his latest nominee for a cabinet position. You'll see it live right here.
Right now though, a quick break on CNN.
(COMMERCIAL BREAK)
SANCHEZ: And let us focus now on our "Top Five Tips." Renewed interest rates makes us renew our interest. Alan Greenspan and the Federal Reserve is going to meet tomorrow. Forecast another quarter point hike in the federal funds rate. That's what the experts are saying. What does it mean for you and for me. Let us ask our personal finance editor Gerri Willis.
You'll find of put this together for us. The first thing comes to mind for most people is oh, my goodness, does this mean all the rates are going to go up?
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Could very well mean that. Hi, Rick. Happy Monday. It matters even if it's only the fed funds rate. The fed funds rate is leader of the pack when it comes to consumer rates. So whether you're getting a home equity loan line of credit, your credit card, your auto loan, they all could go up if the fed moves tomorrow.
SANCHEZ: Is it too late, then, if you're never -- it's never too late. But if you're in the middle of getting a rate of any type should you be panicked? WILLIS: Let's talk about the big one, the mortgage rate that so many people are concerned about. It is not too late there. Here's what happened. We've had a lot of rate hikes from the fed. Really has not impacted mortgage rates yet. Thirty-year fixed rate at 5.71 percent, Rick, that is well below the long-term average of 8 percent.
So if you're looking for a mortgage, by all means get it now. Go to bankrate.com, hsh.com, two websites that are great places to find out what banks in your area are offering.
SANCHEZ: I saw one of the notes you left for us says, "If you're drunk on credit I better sober up." What do you mean by that?
(LAUGHTER)
WILLIS: Well, if credit cards are your favorite way of paying for everything, watch out because in the next month or maybe two, your credit card rates will go up. Now you may think I've got a fixed rate. Nothing will happen to me. But your credit card issuer can raise even your fixed rate with 15 days notice. So keep in mind that you're going to want to try to pay down that credit card debt as soon as possible to keep paying those higher, higher rates.
SANCHEZ: Should you consider if you've got a problem like with credit cards for example, borrowing of the equity in your home?
WILLIS: That's been a trade that a lot of people out there have made. But I've got to tell you, Rick, even those rates are already going higher. Home equity loans, lines of credit already moving higher. And in a period of rising rates you should understand that rates rise faster than they typically come down. So if you're thinking you're safe, think again. You really want to consider rating your home's equity.
SANCHEZ: Gerri, do you have any good news out there?
(LAUGHTER)
WILLIS: Well, I scanned the horizon and yes we have some good news. If you're a saver, rising rates are good for you. Let's face it, you're going to get paid more for your savings. If you're interested in buying Certificates of Deposit right now these are the bank savings tools that are so popular. Consider this. You may want to put your money in some short-term CDs because rates could rise even further.
Keeping in mind Money Markets now paying more than they did a year ago. But you might want to keep your powder dry for a few more months because economists are expecting rates to move even higher, Rick.
SANCHEZ: Gerri Willis, we do thank you for bringing that to us.
WILLIS: You're welcome.
KAGAN: We're full of useful information. We have some news happening.
SANCHEZ: We do. We're going to be taking you to the White House, where we understand the president's going to be making an announcement shortly. That announcement has to do with the replacement for Tommy Thompson at Health and Human Services.
We're not exactly sure who that person's going to be, but I do know someone who may be able to shed some light on that. Our White House correspondent Suzanne Malveaux is up and ready to go.
Suzanne, what do we know?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, actually got from two administration sources that the president's pick is going to be Michael Leavitt. He is the commission of the Environmental Protection Agency. He is also former governor of Utah.
Somewhat of a surprise to the press corps, one name that kept coming up over and over as the front-runner for this position was Mark McClellan. That is the brother of White House press secretary Scott McClellan, but also the commissioner as well as -- FDA commissioner rather, and the chief of Medicare policy.
This position is one that the president, of course, wanted to fill as quickly as possible to round out his cabinet. One thing that, of course, Health and Human Services is dealing with is Medicare reform. As you know, under Secretary Thompson's watch that was one of the major accomplishments of the administration, to push forward a prescription drug policy, a plan for senior citizens. They also dealt with the anthrax scare, the flu vaccine shortage among many other issueless.
We expect however, that what Leavitt is going to have to deal with most notably is going to be budget issues. They're going to have some serious crunches to deal with, shortages in particularly departments. They're also, of course, going to be dealing with a lot of the challenges that come with reforming Medicare. Many critics out there who say that polls show it is not particularly popular to seniors. They believe that it is simply a drain, that it's not working. Very controversial plan.
That is something, of course, that Michael Leavitt is going to have to work with Congress, work with seniors to push forward. At least in the perception that that plan is largely ineffective -- Rick.
SANCHEZ: I'm wondering -- switching topics somewhat here; what the fallout is thus far from the Bernard Kerik announcement? That he's not going to be the person the White House uses in a cabinet post. And there's been an awful lot said, Suzanne, about Mr. Kerik, aside from the problem with the nanny. One begins to wonder if there were a lot of other reasons for the White House to make this decision other than the nanny.
MALVEAUX: Well, White House press secretary Scott McClellan, we just asked him moments ago about that. What did the White House know prior to this meeting when Kerik came forward to talk with President Bush about the nanny problem? They said that simply that they had gone through the appropriate vetting process. That they went through the financial records, the security records, all of the records that are appropriate in actually looking at a potential candidate here.
They say that it did not come to their attention until that Friday when Kerik brought up the news and gave those types of details. They are very adamant. They say that they went through the proper procedures in dealing with this. And that senior administration officials looking at Kerik is the one who really did not give him the kind of sufficient details that were necessary to see this as a red flag.
SANCHEZ: Suzanne Malveaux, following things there for us. And certainly we'll be getting back to you in just a bit if, indeed, the president comes out to make this announcement.
KAGAN: And we will be looking forward to that. Right now we'll take a break and be back after this.
(COMMERCIAL BREAK)
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Aired December 13, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN CO-ANCHOR: We look forward to a cabinet appointment being named by President Bush.
RICK SANCHEZ, CNN CO-ANCHOR: And you know what else? In California the jury's still out. They haven't come back with a decision yet as far as the sentence is concerned. It could happen in the next couple of hours. And if it does we'll certainly bring it to you. But here is what we're following right now in the news.
President Bush will name the newest member of his cabinet this hour. A new nominee for Health and Human Services. We're expecting a live announcement from the White House in about 20 minutes.
Also this morning, Mr. Bush says now he plans to sign the new intelligence overhaul bill this Friday. A live report coming up from the White House in just a little bit.
Also, a suicide car bombing outside Baghdad's Green Zone has killed eight people and wounded 15 more. It happened at a checkpoint near the government compound. The latest on a violent 24 hours in Iraq is just minutes away in a live report for you right here.
And it was one year ago today that U.S. troops in Iraq pulled Saddam Hussein out of that underground bunker you've seen. Well, after eight months in hiding, Hussein has found -- was found December 13 near his home in Tikrit. He remains in U.S. custody and is awaiting trial on war crimes.
Ukrainian opposition leader Viktor Yushchenko campaigning again today in Kiev. Doctors examining him again in Austria say there's no doubt that he was poisoned by the chemical dioxin. Blood tests do show levels in his body are 1,000 times higher than normal. A third round of voting in the bitterly contested Ukrainian presidential race is slated for December 26.
Also Electoral College members across the country are meeting today to cast their presidential votes. In Ohio, the swing state that put President Bush over the top, the balloting is expected to meet with protests. A number of groups say President Bush did not win Ohio fairly. Third recount of the vote won't be finished until sometime next week.
And here we go. Just a couple minutes after the hour, I'm Rick Sanchez.
KAGAN: And good morning on this Monday morning, I'm Daryn Kagan.
Another deadly round of violence in Iraq. Seven U.S. Marines have been killed in Iraq, al Anbar province. The fighting Sunday the deadliest single day for U.S. troops in Iraq since October. Today a suicide car bomber set off an explosion in Baghdad.
For more on another violent 24 hours let's check in with CNN's Karl Penhaul who is live from Baghdad.
Karl, hello.
KARL PENHAUL, CNN CORRESPONDENT: Hi there, Daryn. There were, in fact, two bombings in Baghdad this morning. The first in the northern district of Baghdad was one of those common now roadside bombs. That blew up as a U.S. convoy was passing. We're sold that three U.S. soldiers were wounded, along with one Iraqi civilian. And two of the Humvee trucks that they were traveling in were wrecked.
Half an hour later much bigger bomb. This time, a suicide car bomb at one of the checkpoints to the Green Zone. That's the center, the fortified center that houses the U.S. administration here and also the Iraqi interim government. Police tell us that eight people were killed in that blast, and at least 15 others were wounded. Unclear what the identities of the victims were, but this entry point is one that is commonly used by Iraqi contractors showing up for work.
This blast, in fact was about a mile away from another one 10 days ago, a larger one 10 days ago in which 16 people were killed. This just goes to show how difficult it is even to secure the most fortified compound in the whole of Iraq.
Then on Sunday, and in fact, we only got the reports of this today. But it was actually in fighting on Sunday that seven U.S. Marines were killed in two separate incidents we're told in western al Anbar province. That's the province that is home to the rest of towns of Falluja and Ramadi. The Marines haven't explained what circumstances these Marines were killed in. But insurgent action does continue there despite last month's all-out assault on the city of Falluja -- Daryn.
KAGAN: Karl Penhaul with the latest from Baghdad. Thank you.
SANCHEZ: From Washington this morning like an almost finished jigsaw puzzle in need of two more pieces to fit, President Bush is almost finished filling his cabinet. There's that graphic that we've prepared for you. With current occupants or other nominees still missing, our leaders to replace outgoing Homeland Security Secretary Tom Ridge.
And this hour, we're going to learn who Mr. Bush will tap to replace Tommy Thompson at the Department of Health and Human Services. In fact, we learned that just moments ago.
The president hopes to find scandal free nominees to fill these posts. This after Mr. Bush's pick to lead the Department of Homeland Security, Bernard Kerik, backed out because of questionable immigration status of a nanny who once worked for him, among other things possibly.
Our White House correspondent Dana Bash has more.
(BEGIN VIDEOTAPE)
DANA BASH, CNN WHITE HOUSE CORRESPONDENT (on camera): The White House is defending its vetting process for cabinet picks, saying Bernard Kerik is to blame for not disclosing earlier the legal problems that sunk his nomination. But Bush officials are breathing a sigh of relief that this all happened now, and not later during what would have likely been a bruising confirmation process.
(voice-over): The president, at church, heard a sermon about Christmas. The date his aides are using as a goalpost for finding a new candidate to run the Homeland Security Department. But the hand wringing still isn't over about what went wrong with the first Bush choice Bernard Kerik.
SEN. BYRON DORGAN (D), NORTH DAKOTA: There's something wrong when you announce the head of, I think, one of the most important agencies in our government to protect this country against terrorism, and discover that you've missed the significant piece of the vetting process.
BASH: The White House dropped the ball say some Democrats, by not knowing its pick to oversee immigration had a nanny with questionable legal status. Embarrassed, even annoyed, Bush officials deny rushing to appoint the street cop turned 9/11 hero, insisting Kerik was asked if he had problems like this.
SEN. SUSAN COLLINS (R), MAINE: It is disturbing that apparently there was information in his background that was not shared with the White House. I know for certainty that there are questions asked about: domestic employees, financial matters, and legal disputes.
BASH: The president's moving on says top aides, who suggest he's taking another look at candidates considered the first time around. Like the department head of Border Security, Asa Hutchinson, EPA commissioner, like Leavitt, and the president's Homeland Security adviser Frances Townsend.
Some say Mr. Bush should consider someone with broader experience.
SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: Good morning.
BASH: And one senator, a Democrat, is passing many Washington lips.
UNIDENTIFIED MALE: If you wanted to go to the other side, you could go to Joe Lieberman.
UNIDENTIFIED MALE: Senator Lieberman.
COLLINS: Joe Lieberman.
SEN. JON CORZINE, (D), NEW JERSEY: Joe Lieberman.
UNIDENTIFIED MALE: Joe would be great. But I'd like to find a Republican there a blue state. Maybe we could pick up a seat.
BASH: All kidding aside, Republican sources do say the president has considered asking Lieberman to join his administration. A source close to the Democratic senator noted, he's been careful not to openly criticize the White House recently, and he'd likely take a job if he's asked.
(END VIDEOTAPE)
SANCHEZ: And as we mentioned at the top of the newscast, President Bush will name his pick to replace Tommy Thompson at the Department of Health and Human Services oh, in about 15 minutes or so. What happens then? We'll, of course, bring it to you live.
Now, CNN has also learned of another potential job opening in a top government post. NASA's administrator Sean O'Keefe is expected to announce his resignation today. Sources at NASA say that O'Keefe is going to accept an offer from Louisiana State University, as that school's chancellor.
KAGAN: Let's go to California now. Jurors are meeting again today to decide the fate of convicted murderer Scott Peterson. The group took the weekend off after a long day of deliberating his punishment on Friday.
Our Rusty Dornin has the latest.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Expectations here ran high. The jury that delivered such a quick verdict in the guilt phase would do the same to decide Scott Peterson's punishment for killing his pregnant wife Laci. But after deliberating for nearly nine hours, it was back to the hotel for jury members, and a weekend of restricted TV watching and not much else. Failure to reach a verdict before the weekend may not be a good sign.
It's probably leaning one way or the other. But the people might have some strong feelings about it. And we might be looking for a hung jury.
DORNIN: A hung jury would mean this panel would be dismissed and a new one selected. The new jury would have to hear all the evidence, not just a replay of the penalty phase. Or the more likely eventuality, prosecutors could decide to drop the death penalty. And Peterson would automatically be sentenced to life in prison without parole.
At the courthouse, the wait turned into the local event, both for journalists and the curious. Court watcher Allen Leader sat through 100 days of the trial. His friend Bob Espinoza watched the proceedings at least 40 days, and felt he had to be here for the final judgment. BOB ESPINOZA, COURT WATCHER: You're going to see it on the news and whatever. And you just want to be part of it and just to see the reaction.
DORNIN: Reaction to the life or death punishment for the man who killed his wife and unborn son two years ago this month.
Rusty Dornin, Redwood City, California.
(END VIDEOTAPE)
KAGAN: There's also this legal matter out of California, new information in a child molestation case against Michael Jackson. A source telling CNN that fingerprints belonging to both Jackson and his accuser were found on pornographic magazines seized from Jackson's Neverland ranch.
We are told investigators found the magazines during a raid last year. It is not clear what role that kind of evidence could play if it's admitted into court. Jackson has pleaded not guilty to charges of child molestation.
SANCHEZ: It's an amazing case of poisoning. Ukraine's election drama continues. The opposition candidate speaks out after doctors confirm that poison was the cause of his facial disfigurement.
KAGAN: Plus, the fed meets tomorrow and signs point to another rate hike. We will talk about what this could mean for you at home.
SANCHEZ: And then later, it's the carol that took the spiritual out of Christmas. Doctor Elmo, after a grandma got run over by a reindeer will join us live.
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NARRATOR: Michael Lynton is untangling a web of digital challenges as head of Sony Pictures Entertainment, the company behind the "Spiderman" movies. At the helm for nearly a year, Lynton is extending the Sony's Connect online music service to video in 2005. And with the impending acquisition of MGM, Sony gains access to the world's largest modern film library. SPE is also benefiting from the expected, record-breaking sales of the new Seinfeld DVDs, as is Time- Warner, parent company of CNN.
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KAGAN: A live -- well, interesting. A live picture of the White House there for you. About five minutes from now, we expect President Bush to come out and make an announcement; another cabinet appointee that he would like to nominate. And we will bring that announcement to you live.
Meanwhile, some world news for you. Ukrainian opposition leader Viktor Yushchenko is back in Kiev this morning. He left the Austrian clinic where doctors say tests conclusively prove somebody tried to poison him. Yushchenko says he believes Ukrainian authorities were behind the poisoning. And the prosecutor general has reopened a probe into the mysterious illness.
Our Moscow bureau chief Jill Dougherty has more.
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JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF (voice-over): His doctors by his side, his American-born wife, Katrina, acting as interpreter, Viktor Yushchenko gave no details about how he thought he was poisoned with dioxin, or who might have done it.
VIKTOR YUSHCHENKO, OPPOSITION LEADER, UKRAINE (through translator): I am very happy to be alive in this world today. And I thank these people for this.
DOUGHERTY: But one of his physicians shed new light, saying the poison was not detectable in routine forensic tests, and thanking his medical colleagues around the world for working on a complex case.
DR. MICHAEL ZIMPFER, RUDOLFINERHAUS HOSPITAL: Regardless of any political background who were helping us, who were consulting us, who are -- again to clarify the difficult Yushchenko illness that has not been observed anywhere else beforehand.
DOUGHERTY: Yushchenko fell ill in September as he was beginning his presidential election campaign. A team of doctors in Vienna said Saturday there is no doubt he was poisoned with the toxic chemical dioxin. That it was likely administered orally, in food or a liquid like soup, or most likely by an unnamed third party.
Yushchenko's supporters believe he may have been poisoned at a dinner with the leadership of the Ukrainian Security Service. And claim the plot may have been carried out with help from outside Ukraine; but have provided no evidence.
As he left the Vienna clinic, Yushchenko said his Orange Revolution had already turned Ukraine into a different country. And the regime in power for 14 years is now, quote, "living its last days."
YUSHCHENKO (through translator): We hadn't seen anything like that for the past 100 years. I think it would be appropriate to compare this to the fall of the Soviet Union or the fall of the Berlin Wall.
DOUGHERTY (on camera): Yushchenko now returns to Ukraine for the repeat of the runoff election that was canceled by Ukraine's Supreme Court because of massive fraud. Doctors say he is recovering from the poisoning, but could encounter physical problems down the road. However, his face may take years to return to normal.
Jill Dougherty, CNN, Moscow. (END VIDEOTAPE)
SANCHEZ: Interestingly enough, Yushchenko's chief of staff says that he's concerned and certainly convinced as well, that this plot against his boss has been in the works for months. In fact here's how he stated it earlier right here on CNN.
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OLEH RYBACHUK, YUSHCHENKO'S CHIEF OF STAFF: Somewhere late July, I start getting warning because he's the most popular Ukrainian politician. I was started getting warning that he would be taken care of, as they say. I received this information from top-ranking ex- Secret Service police officers. And they've been telling me that poisoning was No. 1 issue.
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SANCHEZ: Now, the Ukraine's prosecutor general has reopened the investigation into Yushchenko's illness. The candidate is asking investigators to hold off until after the December 26 presidential runoff.
KAGAN: We're going to hold off just a couple of minutes here. President Bush expected to make an announcement any moment. We'll go live to the White House. He is expected to announce his latest nominee for a cabinet position. You'll see it live right here.
Right now though, a quick break on CNN.
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SANCHEZ: And let us focus now on our "Top Five Tips." Renewed interest rates makes us renew our interest. Alan Greenspan and the Federal Reserve is going to meet tomorrow. Forecast another quarter point hike in the federal funds rate. That's what the experts are saying. What does it mean for you and for me. Let us ask our personal finance editor Gerri Willis.
You'll find of put this together for us. The first thing comes to mind for most people is oh, my goodness, does this mean all the rates are going to go up?
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Could very well mean that. Hi, Rick. Happy Monday. It matters even if it's only the fed funds rate. The fed funds rate is leader of the pack when it comes to consumer rates. So whether you're getting a home equity loan line of credit, your credit card, your auto loan, they all could go up if the fed moves tomorrow.
SANCHEZ: Is it too late, then, if you're never -- it's never too late. But if you're in the middle of getting a rate of any type should you be panicked? WILLIS: Let's talk about the big one, the mortgage rate that so many people are concerned about. It is not too late there. Here's what happened. We've had a lot of rate hikes from the fed. Really has not impacted mortgage rates yet. Thirty-year fixed rate at 5.71 percent, Rick, that is well below the long-term average of 8 percent.
So if you're looking for a mortgage, by all means get it now. Go to bankrate.com, hsh.com, two websites that are great places to find out what banks in your area are offering.
SANCHEZ: I saw one of the notes you left for us says, "If you're drunk on credit I better sober up." What do you mean by that?
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WILLIS: Well, if credit cards are your favorite way of paying for everything, watch out because in the next month or maybe two, your credit card rates will go up. Now you may think I've got a fixed rate. Nothing will happen to me. But your credit card issuer can raise even your fixed rate with 15 days notice. So keep in mind that you're going to want to try to pay down that credit card debt as soon as possible to keep paying those higher, higher rates.
SANCHEZ: Should you consider if you've got a problem like with credit cards for example, borrowing of the equity in your home?
WILLIS: That's been a trade that a lot of people out there have made. But I've got to tell you, Rick, even those rates are already going higher. Home equity loans, lines of credit already moving higher. And in a period of rising rates you should understand that rates rise faster than they typically come down. So if you're thinking you're safe, think again. You really want to consider rating your home's equity.
SANCHEZ: Gerri, do you have any good news out there?
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WILLIS: Well, I scanned the horizon and yes we have some good news. If you're a saver, rising rates are good for you. Let's face it, you're going to get paid more for your savings. If you're interested in buying Certificates of Deposit right now these are the bank savings tools that are so popular. Consider this. You may want to put your money in some short-term CDs because rates could rise even further.
Keeping in mind Money Markets now paying more than they did a year ago. But you might want to keep your powder dry for a few more months because economists are expecting rates to move even higher, Rick.
SANCHEZ: Gerri Willis, we do thank you for bringing that to us.
WILLIS: You're welcome.
KAGAN: We're full of useful information. We have some news happening.
SANCHEZ: We do. We're going to be taking you to the White House, where we understand the president's going to be making an announcement shortly. That announcement has to do with the replacement for Tommy Thompson at Health and Human Services.
We're not exactly sure who that person's going to be, but I do know someone who may be able to shed some light on that. Our White House correspondent Suzanne Malveaux is up and ready to go.
Suzanne, what do we know?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, actually got from two administration sources that the president's pick is going to be Michael Leavitt. He is the commission of the Environmental Protection Agency. He is also former governor of Utah.
Somewhat of a surprise to the press corps, one name that kept coming up over and over as the front-runner for this position was Mark McClellan. That is the brother of White House press secretary Scott McClellan, but also the commissioner as well as -- FDA commissioner rather, and the chief of Medicare policy.
This position is one that the president, of course, wanted to fill as quickly as possible to round out his cabinet. One thing that, of course, Health and Human Services is dealing with is Medicare reform. As you know, under Secretary Thompson's watch that was one of the major accomplishments of the administration, to push forward a prescription drug policy, a plan for senior citizens. They also dealt with the anthrax scare, the flu vaccine shortage among many other issueless.
We expect however, that what Leavitt is going to have to deal with most notably is going to be budget issues. They're going to have some serious crunches to deal with, shortages in particularly departments. They're also, of course, going to be dealing with a lot of the challenges that come with reforming Medicare. Many critics out there who say that polls show it is not particularly popular to seniors. They believe that it is simply a drain, that it's not working. Very controversial plan.
That is something, of course, that Michael Leavitt is going to have to work with Congress, work with seniors to push forward. At least in the perception that that plan is largely ineffective -- Rick.
SANCHEZ: I'm wondering -- switching topics somewhat here; what the fallout is thus far from the Bernard Kerik announcement? That he's not going to be the person the White House uses in a cabinet post. And there's been an awful lot said, Suzanne, about Mr. Kerik, aside from the problem with the nanny. One begins to wonder if there were a lot of other reasons for the White House to make this decision other than the nanny.
MALVEAUX: Well, White House press secretary Scott McClellan, we just asked him moments ago about that. What did the White House know prior to this meeting when Kerik came forward to talk with President Bush about the nanny problem? They said that simply that they had gone through the appropriate vetting process. That they went through the financial records, the security records, all of the records that are appropriate in actually looking at a potential candidate here.
They say that it did not come to their attention until that Friday when Kerik brought up the news and gave those types of details. They are very adamant. They say that they went through the proper procedures in dealing with this. And that senior administration officials looking at Kerik is the one who really did not give him the kind of sufficient details that were necessary to see this as a red flag.
SANCHEZ: Suzanne Malveaux, following things there for us. And certainly we'll be getting back to you in just a bit if, indeed, the president comes out to make this announcement.
KAGAN: And we will be looking forward to that. Right now we'll take a break and be back after this.
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