Return to Transcripts main page
CNN Live Today
Budget Day on Capitol Hill; Rice on the Road; Super Security
Aired February 07, 2005 - 10:59 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.
BETTY NGUYEN, CNN ANCHOR: "Now in the News," President Bush's budget for 2006 was released about an hour ago. Some are calling it the tightest budget in many years. And it's expected to face a lot of opposition from both parties on Capitol Hill. We will have details in a live report. That is straight ahead.
Secretary of State Condoleezza Rice heads to Rome after a two-day trip to the Middle East. Rice announced Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon have accepted invitations to meet with President Bush in Washington this spring. We'll have more in a live report in minutes.
More fallout from the investigation of the U.N.'s oil-for-food program. We've learned that the U.N. has suspended two employees accused of misconduct. One of the men is the former head of the oil- for-food program and the other is a senior official. The suspension comes after an interim report by an independent commission severely criticized the conduct of both men.
And a horrifying story out of Huntsville, Alabama. Police say Natashay Yvonne Ward confessed to deliberately starving her three children to death. Ward is being held without bond on capital murder charges. The bodies of her children, aged 8, 9 and 11, were found Friday inside an apartment in Huntsville, Alabama.
And it is official. The New England Patriots are Super Bowl champions yet again. The Patriots beat the Philadelphia Eagles in the big game yesterday 24-21. It's New England's third time winning in four years. We'll have the latest on the game and that halftime performance straight ahead.
Well, good morning, everybody. It's 11:00 a.m. on the East Coast, 8:00 a.m. in the West. From the CNN Center here in Atlanta, I'm Betty Nguyen, in for Daryn Kagan.
RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez.
Let's see, it's Fashion Week in New York, Super Bowl Monday in Boston. But it's budget day on Capitol Hill. Our top story this hour, budgets and business meetings. A very busy day for President Bush.
The president met with members of his cabinet last hour, having nothing to do with the siren in the background, I imagine. His 2006 budget has arrived on Capitol Hill.
For the lean and mean details, we turn now to CNN congressional correspondent Ed Henry.
This is going to liven things up, at least the debate will, I imagine. Right, Ed?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Oh, absolutely. Especially after the State of the Union address last week that laid the framework for this, laid the groundwork. Here is the $2.5 trillion budget that the president just sent up to Capitol Hill this morning.
As you mentioned, it's important to remember though that this budget itself is just a framework. The actual details will be worked out by Democrats and Republicans up here on the Hill. And some people in both parties privately and publicly already raising questions about the details.
There are 150 federal programs that will be targeted in here for either cuts or outright elimination. Some Republicans already saying maybe a lot of those will not actually come to fruition, they will -- those cuts will not see the light of day. A lot of Democrats obviously jumping on them, in particular the domestic cuts.
Right at this point, we already have a $427 billion deficit. Some Republicans, though -- a lot of Republicans leaders up here are pointing out that the federal government does need to be reined in. What Democrats are harping on are cuts that will affect people, viewers all across the country.
In particular, for example, schools. Out of the 150 federal programs that I mentioned that are being targeted, one-third of those affect education programs.
Also, health programs. Medicaid facing some big cuts here. Of course, that's the health care program for the poor. Democrats jumping on that as well.
Also cuts for the environment, for veterans, spending, also for Amtrak, anyone who uses the railroad. That's something that is going to be a very big part of this debate.
Now, Democrats are saying, while they understand the Pentagon budget needs to rise to about $419 billion per year in this budget, since we're at war right now, they say there are still priorities that need to be addressed here at home. But Republicans like Senator John Cornyn say that at a time of deep budget deficits, the government has to cut spending.
(BEGIN VIDEO CLIP)
SEN. JOHN CORNYN (R), TEXAS: So we ought to be looking at the dead wood. We ought to be looking at those programs that don't actually serve their purpose. And we ought to fund those at zero. Those that do work, those that do meet the purposes of the Congress and the American people, should be funded better.
(END VIDEO CLIP) HENRY: Now, one of the big political questions for the president and for Republican leaders up here coming out of the release of this budget is how it will affect the rest of the president's second-term agenda. We've already heard the estimates saying that for Social Security reform, the signature issue for the president in his second term, the transition to private accounts could cost some $2 trillion. A lot of Democrats and some Republicans up here are going to be raising questions about, at a time of spending cuts, a time of budget deficits, how is the government going to be able to borrow another $2 trillion in order to pay for Social Security reform -- Rick.
SANCHEZ: Yes, it's interesting you would make that point, because, in fact, there is a direct quote yesterday from Vice President Cheney. He says -- acknowledging the federal government would need to borrow trillions of dollars over the next couple of decades on the Social Security proposal. So really what we have, Ed, it seems, is no sacred cows except Iraq, Afghanistan and the new Social Security proposal. Correct?
HENRY: Well, absolutely. And the president is facing a lot of political pressure from the right as well coming out of the last election.
There are a lot of fiscal conservatives up here on Capitol Hill since the Republicans run the House and Senate who feel that they got elected and the president got re-elected on a platform of limited government, with a $2.5 trillion federal budget. Now that the Republicans are in control of everything, they want to finally start doing something about it and they want to make sure it's not just words. They want to make sure there is action -- Rick.
SANCHEZ: Ed Henry following that for us. We thank you, Ed.
Meanwhile, we should let you know that we should be catching up with the president and his new cabinet soon. We understand that we'll be able to share with you some pictures of the president in the briefing room with the cabinet in just a bit. As soon as it happens, we'll be able to turn that around and share it with you.
Betty, over to you.
NGUYEN: And right now, Secretary of State Condoleezza Rice has just arrived in Rome. Rice will meet with Italian Prime Minister Silvio Berlusconi, a steadfast U.S. ally on Iraq. Now, she arrives two days -- or from two days in the Middle East, where she worked to get the peace process back on track.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: I conveyed invitations from President Bush to Prime Minister Sharon and President Abbas for meetings with him in the spring. And each has accepted. King Abdullah of Jordan will also visit the United States in March.
(END VIDEO CLIP)
NGUYEN: Rice also named a U.S. general to be her point man for Palestinian security issues.
Now to Jerusalem and CNN's Guy Raz, where, Guy, there is a lot of questions surrounding exactly what does that role encompass.
GUY RAZ, CNN CORRESPONDENT: Well, Betty, it's not entirely clear at the moment. We understand that William Ward will be arriving to the region in about three weeks' time. And essentially, his job will be to monitor security coordination between Israeli and Palestinian security forces.
Now, as you know, in the past several weeks, thousands of Palestinian police officers have been deployed, primarily in the Gaza Strip, to maintain a very fragile and delicate period of calm that's been established between Israeli and Palestinian military figures. Now, we also understand that he -- his job will be to make sure that Israeli forces are also, in a sense, carrying their end of the bargain, withdrawing from Palestinian towns and cities.
But the main message that Condoleezza Rice left with the region was this: essentially the United States is back in the game, back in the process. Now, for the past three years, the Bush administration essentially shunned Mahmoud Abbas -- Mahmoud Abbass, the current Palestinian president's, predecessor, Yasser Arafat. Now the White House is clearly signaling an intent, desire to get back in the process and get back in it actively.
And Condoleezza Rice essentially made that point time and again, saying that, in fact, she would be willing to come to the region as much as needed in order to keep the two sides talking. Now both Israelis and Palestinians understand that Condoleezza Rice came to this region with the weight of the White House behind her. She has a close relationship with the president, and both sides essentially get the sense that the words coming from Condoleezza Rice are the words coming from the White House, something that certainly differentiates Condoleezza Rice from her predecessor, Colin Powell -- Betty.
NGUYEN: Guy, she also brought with her a message that the U.S. is pledging some $350 million in economic aid for the Palestinians as well?
RAZ: That's right. This $350 million aid package is much-needed money by the Palestinian Authority, money necessary to rebuild infrastructure, institutions damaged and destroyed in fighting with Israel over the past four years. The Palestinian Authority has welcomed that pledge of money, and certainly it's a pledge to show that the Bush administration is very confident in the new Palestinian leadership -- Betty.
NGUYEN: Guy Raz in Jerusalem. Thank you for that.
Our Pentagon correspondent, Barbara Starr, will be here in the next half-hour. She is working up a profile of the new Palestinian security coordinator, Lieutenant General William "Kip" Ward.
SANCHEZ: Following developments now that have to do with Iran and a series of statements and events that have taken place. We'll try and break them down for you.
First, Secretary Rice, as you may recall last week, says an attack on Iran while she was in Europe was "not on the agenda." President Bush then seemed to raise the possibility in his State of the Union speech last week. And now Ms. Rice is making comments again.
The president had called Iran the world's chief state sponsor of terrorism and accuses Tehran of working on nuclear weapons. Well, now the Iranians are chiming in. They're saying that Rice's remarks by -- about the United States and Iran signal a retreat. Here is what they say.
(BEGIN VIDEO CLIP)
HASSAN ROHANI, IRANIAN SECURITY COUNCIL MEMBER (through translator): I don't think America itself will take such a risk because America knows very well that we will strongly answer such an attack. The Americans are very well aware of our capabilities. They know our capabilities for retaliating against such attacks.
I do not think in their final calculations they will take such risks. Besides, in case of any such attacks, we will definitely have greater motivation to make our fuel cycle and will accelerate it.
(END VIDEO CLIP)
SANCHEZ: Now, Iran's former president and the man likely to return to power this summer is echoing that sentiment. Ali Akbar Hashemi Rafsanjani is telling "USA Today" -- and we quote -- "The United States would not dare to attack us." He goes on, "We have got used to this nonsense. Ms. Rice is a bit emotional. She talks tough, but she cannot be tough herself."
NGUYEN: I don't think we'll -- that's the last we'll be hearing of that between those.
Well, the Super Bowl was a hit as the two teams went head to head on the field. But there was another team hard at work behind the scenes. We'll take you into the security operation that made Super Bowl XXXIX a safe one.
SANCHEZ: Also, Klein, Herrera, Karan. Any of those names ring a bell? It's Fashion Week. We've got one of those designers on hand for a first-hand look at all the new fashions. Did I mess up part of those pronunciations?
NGUYEN: Yes. Donna Karan.
SANCHEZ: What's new?
NGUYEN: Not the Koran.
And music, dance and outrageous costumes. Check it out. It is carnival time, where the biggest Mardi Gras festival is happening. We'll take you there when we come back. (COMMERCIAL BREAK)
(STOCK MARKET REPORT)
(COMMERCIAL BREAK)
NGUYEN: All right. New England has done it again. The Patriots won their third Super Bowl in four years last night, defeating the Philadelphia Eagles 24-21. Patriots wide receiver Deion Branch was named most valuable player with his Super Bowl record-tying 11 receptions.
Now, earlier, he appeared on CNN's "AMERICAN MORNING" and talked about how his team made quick adjustments.
(BEGIN VIDEO CLIP)
DEION BRANCH, MVP: We had to slow down and play our type of football. The first quarter was bad. You know, the coaches and the rest of the guys did a great job of coming to the sideline and adjusting to a lot of things. And we got them correct and started playing our type of football and started moving the ball and making some points.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
TEDY BRUSCHI, PATRIOTS LINEBACKER: It feels great. You know? It's our third win in four years. And you don't get used to it.
You don't get used to it because you cherish world championships whenever they happen. You know, whether it's every year or once every 10 years, when it does happen, you just cherish the moment.
(END VIDEO CLIP)
NGUYEN: Absolutely. As for the entertainment at halftime, there was no controversy as legendary rocker Paul McCartney entertained the masses.
(MUSIC)
NGUYEN: "Hey Jude" had them swaying. Other performers on last night's bill included country singer Gretchen Wilson and Alicia Keys singing "American the Beautiful," along with video of the late Ray Charles.
SANCHEZ: And while fans were cheering the big rivalry between the teams, for some it wasn't all fun and games. Some 50 law enforcement agencies worked together to try and secure the ALLTEL stadium and the area around it as well. In a story you'll see only here on CNN, our Susan Candiotti takes us inside the massive operation for an exclusive look behind the scenes at security.
(BEGIN VIDEOTAPE) SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): While two teams were doing battle on the gridiron, a third team was in the middle of its own game plan, using everything from satellite images of Jacksonville down to schematics of the stadium club-level ceilings. Hundreds of agents from federal, state and local agencies stood by in case of trouble. As it turns out, the biggest worry wasn't the game, but at jam-packed activities nearby, reminiscent of the park bombing at the summer Olympics in Atlanta.
UNIDENTIFIED MALE: If an individual, a lone wolf-type character like Eric Rudolph , per se, were to show up, the most vulnerable area is, of course, the NFL venues that are not at the Super Bowl.
CANDIOTTI: A few hours before the game began, a possible problem. Radar aboard this homeland security aircraft picked up a small plane close to penetrating a 30-mile wide no-fly zone. The plane was ordered to put down.
UNIDENTIFIED MALE: It landed at an outlying field and it was met by investigators.
CANDIOTTI: But no threat was found. That information went straight to the man in charge of Super Bowl XXXIX security, Jacksonville Sheriff John Rutherford, at his command post. Perhaps his biggest get of the night was this man, Dion Rich, famous for faking his way into more than 30 Super Bowls, the Kentucky Derby and the Academy Awards. This time, he was arrested with an alleged phony ticket.
UNIDENTIFIED MALE: He's, I believe, trying to embarrass law enforcement to show that the security is not that good.
CANDIOTTI: In section 119, a minor fan fight in the seats.
UNIDENTIFIED MALE: And this is the closest camera.
CANDIOTTI: A battery of more than 200 cameras allowed authorities to pinpoint where it happened. For the Coast Guard, no breaches to its 14-mile safety zone on the St. John's River. Yet by game's end, the sheriff was not ready to call his security team's work a success.
UNIDENTIFIED MALE: Once we help get all these fans moved out of Jacksonville and get back to where they -- where they reside, that will be our -- that's when we're going to start celebrating this -- the end of this game.
(END VIDEOTAPE)
SANCHEZ: That's Susan Candiotti. Reporting now on the air and on the Web, CNN keeps you up to date on your safety. Log onto CNN.com/security watch. And stay tuned day and night for the most reliable news about your security.
NGUYEN: And Rick is very well aware that it is fashion week in New York. SANCHEZ: Oh man. I had it crossed off on my calendar for weeks now.
NGUYEN: We have a lady who knows all about what's in and what's out. And we'll talk with her right after the break.
SANCHEZ: Also, it's a world of snow. Are these snow-covered buildings real? We're going to take a closer look in just a bit.
NGUYEN: And from the snow to the warmth of reggae music. Find out whose birthday a whole nation is celebrating. There's a big hint.
We'll be right back.
(COMMERCIAL BREAK)
NGUYEN: There is barely a whiff of springtime in the air, but it is already fall in New York City. Designers are reshaping fall wardrobes as Fashion Week gets into full swing. Word on the street, ponchos, they're out. Patchwork, that's in.
Joining us now is designer Carolina Herrera. She unveiled her newest creations about an hour ago.
Hi there. Thanks for being with us. Can you hear us?
CAROLINA HERRERA, FASHION DESIGNER: Hello?
NGUYEN: Hello. Hi there. Thanks for being with us.
HERRERA: How are you?
NGUYEN: I'm doing wonderful. You just finished your show about an hour or so ago. Tell us, what's on tap for fall? How do you envision it?
HERRERA: Well, I finished a show five minutes ago.
NGUYEN: Oh, OK.
HERRERA: Yes.
NGUYEN: We thought it was just about an hour ago. OK. Regardless, five minutes, an hour ago, what do you have in mind for fall?
HERRERA: Well, for fall, it has been a wonderful fall because I had a hint of the '40s for the collection. But it's very -- the women from the '40s was very elegant and very, you know, glamorous. But I took some hints of it and I show a collection that is very, very ladylike, you can say, very glamorous.
NGUYEN: It seems very form-fitting, yes, very glamorous. Is there a specific color? Because we're looking at some video now and it seems like that fall patchwork design is in effect with your fashions. HERRERA: No. You know, I have a -- the best news of this collection is the proportion of the skirts. It's a different dimension.
They have -- they have movement. It's a very sophisticated collection. It's for daytime.
I use all the men's fabrics. And I translate it in a very feminine way. And that's the hint of the '40s.
NGUYEN: So you're using men's fabric and just putting a female twist on it.
HERRERA: Exactly. With very tiny jackets, very short with new sleeves. And the skirts are lovely. They move very well, and they're very feminine. They make women look really like women.
NGUYEN: Absolutely. You are known for designing elegant, sophisticated pieces. Do you keep the everyday woman in mind? Are these pieces that women can put on and stick in their closet and wear over and over again?
HERRERA: I think so. If you look well in what you're wearing, why don't you wear it over and over again? I think it's nice.
And there is another news in this collection. There is color. Not black. We have -- I had some beautiful colors like mimosa, violet, you know, bright colors.
NGUYEN: You know, every season there seems to be that one color that sticks out. What is that color for fall?
HERRERA: I think -- I think in this collection, there is that raspberry and mimosa that I like very much.
NGUYEN: OK. And quickly, before we go, I want to say that we heard that Renee Zellweger was at the event as well today at your show. What is it about your style that draws these stars? Not only to your show, but to don your outfits on the red carpet?
HERRERA: Yes. I think I've been dressing Renee for the red carpet for the last three years. And I think she -- she fits perfect in this style of clothes that I do. And I think she will -- she always looks great.
She has the right proportion for my clothes. She has that tiny waist. And she knows -- she loves fashion, so she looks good in it.
NGUYEN: Well, you look great too, and so do your designs for fall. We thank you for your time today.
HERRERA: Thank you so much for having me here.
NGUYEN: Absolutely.
HERRERA: Thank you. SANCHEZ: Let's turn things over now to a woman who thought mimosa was only a drink, Jacqui Jeras.
(WEATHER REPORT)
NGUYEN: That was a story we were going to tell, but right now we've got to go.
SANCHEZ: We understand we're changing. We're doing something else.
NGUYEN: Yes.
SANCHEZ: I think we're going to be going to Dana Bash instead. Might be getting very soon some of that tape from the White House with the president meeting with some of his cabinet members. We should say, his new cabinet.
We're going to roll that tape for you in just a little bit. As we do, let's go over to Dana Bash and find out what we expect to hear with this new cabinet.
Dana, over to you.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi there.
And we are just expecting tape, as you said. So hopefully we'll -- we'll know -- let you know once that starts. But we understand that the president talked about what is in his new budget and said he understands the fact that it is not going to be easy to get some of these cuts through. In some cases, cuts in programs, in some cases, just elimination altogether of programs.
But he said -- and we will hear from him again shortly -- that it's important to do this because it is important to reduce the deficit. That is something that is a key goal of this term for the president, something that many in his own party were very upset that he let climb.
Of course, the president came into office, Rick, with a record surplus. And now he's starting his second term with a record deficit. So that is his top goal with his budget, the president said. And we are going to hear from him very shortly.
SANCHEZ: Well, the cuts...
NGUYEN: I think we're getting the tape in right now.
SANCHEZ: Is it -- is it ready? How many seconds? Oh, we have 15 seconds of the tape. And we'll talk about this a little bit on the back half of this, Dana. But the commentary we're getting thus far is that a lot of the cuts are going to have to deal with education.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 7, 2005 - 10:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: "Now in the News," President Bush's budget for 2006 was released about an hour ago. Some are calling it the tightest budget in many years. And it's expected to face a lot of opposition from both parties on Capitol Hill. We will have details in a live report. That is straight ahead.
Secretary of State Condoleezza Rice heads to Rome after a two-day trip to the Middle East. Rice announced Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon have accepted invitations to meet with President Bush in Washington this spring. We'll have more in a live report in minutes.
More fallout from the investigation of the U.N.'s oil-for-food program. We've learned that the U.N. has suspended two employees accused of misconduct. One of the men is the former head of the oil- for-food program and the other is a senior official. The suspension comes after an interim report by an independent commission severely criticized the conduct of both men.
And a horrifying story out of Huntsville, Alabama. Police say Natashay Yvonne Ward confessed to deliberately starving her three children to death. Ward is being held without bond on capital murder charges. The bodies of her children, aged 8, 9 and 11, were found Friday inside an apartment in Huntsville, Alabama.
And it is official. The New England Patriots are Super Bowl champions yet again. The Patriots beat the Philadelphia Eagles in the big game yesterday 24-21. It's New England's third time winning in four years. We'll have the latest on the game and that halftime performance straight ahead.
Well, good morning, everybody. It's 11:00 a.m. on the East Coast, 8:00 a.m. in the West. From the CNN Center here in Atlanta, I'm Betty Nguyen, in for Daryn Kagan.
RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez.
Let's see, it's Fashion Week in New York, Super Bowl Monday in Boston. But it's budget day on Capitol Hill. Our top story this hour, budgets and business meetings. A very busy day for President Bush.
The president met with members of his cabinet last hour, having nothing to do with the siren in the background, I imagine. His 2006 budget has arrived on Capitol Hill.
For the lean and mean details, we turn now to CNN congressional correspondent Ed Henry.
This is going to liven things up, at least the debate will, I imagine. Right, Ed?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Oh, absolutely. Especially after the State of the Union address last week that laid the framework for this, laid the groundwork. Here is the $2.5 trillion budget that the president just sent up to Capitol Hill this morning.
As you mentioned, it's important to remember though that this budget itself is just a framework. The actual details will be worked out by Democrats and Republicans up here on the Hill. And some people in both parties privately and publicly already raising questions about the details.
There are 150 federal programs that will be targeted in here for either cuts or outright elimination. Some Republicans already saying maybe a lot of those will not actually come to fruition, they will -- those cuts will not see the light of day. A lot of Democrats obviously jumping on them, in particular the domestic cuts.
Right at this point, we already have a $427 billion deficit. Some Republicans, though -- a lot of Republicans leaders up here are pointing out that the federal government does need to be reined in. What Democrats are harping on are cuts that will affect people, viewers all across the country.
In particular, for example, schools. Out of the 150 federal programs that I mentioned that are being targeted, one-third of those affect education programs.
Also, health programs. Medicaid facing some big cuts here. Of course, that's the health care program for the poor. Democrats jumping on that as well.
Also cuts for the environment, for veterans, spending, also for Amtrak, anyone who uses the railroad. That's something that is going to be a very big part of this debate.
Now, Democrats are saying, while they understand the Pentagon budget needs to rise to about $419 billion per year in this budget, since we're at war right now, they say there are still priorities that need to be addressed here at home. But Republicans like Senator John Cornyn say that at a time of deep budget deficits, the government has to cut spending.
(BEGIN VIDEO CLIP)
SEN. JOHN CORNYN (R), TEXAS: So we ought to be looking at the dead wood. We ought to be looking at those programs that don't actually serve their purpose. And we ought to fund those at zero. Those that do work, those that do meet the purposes of the Congress and the American people, should be funded better.
(END VIDEO CLIP) HENRY: Now, one of the big political questions for the president and for Republican leaders up here coming out of the release of this budget is how it will affect the rest of the president's second-term agenda. We've already heard the estimates saying that for Social Security reform, the signature issue for the president in his second term, the transition to private accounts could cost some $2 trillion. A lot of Democrats and some Republicans up here are going to be raising questions about, at a time of spending cuts, a time of budget deficits, how is the government going to be able to borrow another $2 trillion in order to pay for Social Security reform -- Rick.
SANCHEZ: Yes, it's interesting you would make that point, because, in fact, there is a direct quote yesterday from Vice President Cheney. He says -- acknowledging the federal government would need to borrow trillions of dollars over the next couple of decades on the Social Security proposal. So really what we have, Ed, it seems, is no sacred cows except Iraq, Afghanistan and the new Social Security proposal. Correct?
HENRY: Well, absolutely. And the president is facing a lot of political pressure from the right as well coming out of the last election.
There are a lot of fiscal conservatives up here on Capitol Hill since the Republicans run the House and Senate who feel that they got elected and the president got re-elected on a platform of limited government, with a $2.5 trillion federal budget. Now that the Republicans are in control of everything, they want to finally start doing something about it and they want to make sure it's not just words. They want to make sure there is action -- Rick.
SANCHEZ: Ed Henry following that for us. We thank you, Ed.
Meanwhile, we should let you know that we should be catching up with the president and his new cabinet soon. We understand that we'll be able to share with you some pictures of the president in the briefing room with the cabinet in just a bit. As soon as it happens, we'll be able to turn that around and share it with you.
Betty, over to you.
NGUYEN: And right now, Secretary of State Condoleezza Rice has just arrived in Rome. Rice will meet with Italian Prime Minister Silvio Berlusconi, a steadfast U.S. ally on Iraq. Now, she arrives two days -- or from two days in the Middle East, where she worked to get the peace process back on track.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: I conveyed invitations from President Bush to Prime Minister Sharon and President Abbas for meetings with him in the spring. And each has accepted. King Abdullah of Jordan will also visit the United States in March.
(END VIDEO CLIP)
NGUYEN: Rice also named a U.S. general to be her point man for Palestinian security issues.
Now to Jerusalem and CNN's Guy Raz, where, Guy, there is a lot of questions surrounding exactly what does that role encompass.
GUY RAZ, CNN CORRESPONDENT: Well, Betty, it's not entirely clear at the moment. We understand that William Ward will be arriving to the region in about three weeks' time. And essentially, his job will be to monitor security coordination between Israeli and Palestinian security forces.
Now, as you know, in the past several weeks, thousands of Palestinian police officers have been deployed, primarily in the Gaza Strip, to maintain a very fragile and delicate period of calm that's been established between Israeli and Palestinian military figures. Now, we also understand that he -- his job will be to make sure that Israeli forces are also, in a sense, carrying their end of the bargain, withdrawing from Palestinian towns and cities.
But the main message that Condoleezza Rice left with the region was this: essentially the United States is back in the game, back in the process. Now, for the past three years, the Bush administration essentially shunned Mahmoud Abbas -- Mahmoud Abbass, the current Palestinian president's, predecessor, Yasser Arafat. Now the White House is clearly signaling an intent, desire to get back in the process and get back in it actively.
And Condoleezza Rice essentially made that point time and again, saying that, in fact, she would be willing to come to the region as much as needed in order to keep the two sides talking. Now both Israelis and Palestinians understand that Condoleezza Rice came to this region with the weight of the White House behind her. She has a close relationship with the president, and both sides essentially get the sense that the words coming from Condoleezza Rice are the words coming from the White House, something that certainly differentiates Condoleezza Rice from her predecessor, Colin Powell -- Betty.
NGUYEN: Guy, she also brought with her a message that the U.S. is pledging some $350 million in economic aid for the Palestinians as well?
RAZ: That's right. This $350 million aid package is much-needed money by the Palestinian Authority, money necessary to rebuild infrastructure, institutions damaged and destroyed in fighting with Israel over the past four years. The Palestinian Authority has welcomed that pledge of money, and certainly it's a pledge to show that the Bush administration is very confident in the new Palestinian leadership -- Betty.
NGUYEN: Guy Raz in Jerusalem. Thank you for that.
Our Pentagon correspondent, Barbara Starr, will be here in the next half-hour. She is working up a profile of the new Palestinian security coordinator, Lieutenant General William "Kip" Ward.
SANCHEZ: Following developments now that have to do with Iran and a series of statements and events that have taken place. We'll try and break them down for you.
First, Secretary Rice, as you may recall last week, says an attack on Iran while she was in Europe was "not on the agenda." President Bush then seemed to raise the possibility in his State of the Union speech last week. And now Ms. Rice is making comments again.
The president had called Iran the world's chief state sponsor of terrorism and accuses Tehran of working on nuclear weapons. Well, now the Iranians are chiming in. They're saying that Rice's remarks by -- about the United States and Iran signal a retreat. Here is what they say.
(BEGIN VIDEO CLIP)
HASSAN ROHANI, IRANIAN SECURITY COUNCIL MEMBER (through translator): I don't think America itself will take such a risk because America knows very well that we will strongly answer such an attack. The Americans are very well aware of our capabilities. They know our capabilities for retaliating against such attacks.
I do not think in their final calculations they will take such risks. Besides, in case of any such attacks, we will definitely have greater motivation to make our fuel cycle and will accelerate it.
(END VIDEO CLIP)
SANCHEZ: Now, Iran's former president and the man likely to return to power this summer is echoing that sentiment. Ali Akbar Hashemi Rafsanjani is telling "USA Today" -- and we quote -- "The United States would not dare to attack us." He goes on, "We have got used to this nonsense. Ms. Rice is a bit emotional. She talks tough, but she cannot be tough herself."
NGUYEN: I don't think we'll -- that's the last we'll be hearing of that between those.
Well, the Super Bowl was a hit as the two teams went head to head on the field. But there was another team hard at work behind the scenes. We'll take you into the security operation that made Super Bowl XXXIX a safe one.
SANCHEZ: Also, Klein, Herrera, Karan. Any of those names ring a bell? It's Fashion Week. We've got one of those designers on hand for a first-hand look at all the new fashions. Did I mess up part of those pronunciations?
NGUYEN: Yes. Donna Karan.
SANCHEZ: What's new?
NGUYEN: Not the Koran.
And music, dance and outrageous costumes. Check it out. It is carnival time, where the biggest Mardi Gras festival is happening. We'll take you there when we come back. (COMMERCIAL BREAK)
(STOCK MARKET REPORT)
(COMMERCIAL BREAK)
NGUYEN: All right. New England has done it again. The Patriots won their third Super Bowl in four years last night, defeating the Philadelphia Eagles 24-21. Patriots wide receiver Deion Branch was named most valuable player with his Super Bowl record-tying 11 receptions.
Now, earlier, he appeared on CNN's "AMERICAN MORNING" and talked about how his team made quick adjustments.
(BEGIN VIDEO CLIP)
DEION BRANCH, MVP: We had to slow down and play our type of football. The first quarter was bad. You know, the coaches and the rest of the guys did a great job of coming to the sideline and adjusting to a lot of things. And we got them correct and started playing our type of football and started moving the ball and making some points.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
TEDY BRUSCHI, PATRIOTS LINEBACKER: It feels great. You know? It's our third win in four years. And you don't get used to it.
You don't get used to it because you cherish world championships whenever they happen. You know, whether it's every year or once every 10 years, when it does happen, you just cherish the moment.
(END VIDEO CLIP)
NGUYEN: Absolutely. As for the entertainment at halftime, there was no controversy as legendary rocker Paul McCartney entertained the masses.
(MUSIC)
NGUYEN: "Hey Jude" had them swaying. Other performers on last night's bill included country singer Gretchen Wilson and Alicia Keys singing "American the Beautiful," along with video of the late Ray Charles.
SANCHEZ: And while fans were cheering the big rivalry between the teams, for some it wasn't all fun and games. Some 50 law enforcement agencies worked together to try and secure the ALLTEL stadium and the area around it as well. In a story you'll see only here on CNN, our Susan Candiotti takes us inside the massive operation for an exclusive look behind the scenes at security.
(BEGIN VIDEOTAPE) SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): While two teams were doing battle on the gridiron, a third team was in the middle of its own game plan, using everything from satellite images of Jacksonville down to schematics of the stadium club-level ceilings. Hundreds of agents from federal, state and local agencies stood by in case of trouble. As it turns out, the biggest worry wasn't the game, but at jam-packed activities nearby, reminiscent of the park bombing at the summer Olympics in Atlanta.
UNIDENTIFIED MALE: If an individual, a lone wolf-type character like Eric Rudolph , per se, were to show up, the most vulnerable area is, of course, the NFL venues that are not at the Super Bowl.
CANDIOTTI: A few hours before the game began, a possible problem. Radar aboard this homeland security aircraft picked up a small plane close to penetrating a 30-mile wide no-fly zone. The plane was ordered to put down.
UNIDENTIFIED MALE: It landed at an outlying field and it was met by investigators.
CANDIOTTI: But no threat was found. That information went straight to the man in charge of Super Bowl XXXIX security, Jacksonville Sheriff John Rutherford, at his command post. Perhaps his biggest get of the night was this man, Dion Rich, famous for faking his way into more than 30 Super Bowls, the Kentucky Derby and the Academy Awards. This time, he was arrested with an alleged phony ticket.
UNIDENTIFIED MALE: He's, I believe, trying to embarrass law enforcement to show that the security is not that good.
CANDIOTTI: In section 119, a minor fan fight in the seats.
UNIDENTIFIED MALE: And this is the closest camera.
CANDIOTTI: A battery of more than 200 cameras allowed authorities to pinpoint where it happened. For the Coast Guard, no breaches to its 14-mile safety zone on the St. John's River. Yet by game's end, the sheriff was not ready to call his security team's work a success.
UNIDENTIFIED MALE: Once we help get all these fans moved out of Jacksonville and get back to where they -- where they reside, that will be our -- that's when we're going to start celebrating this -- the end of this game.
(END VIDEOTAPE)
SANCHEZ: That's Susan Candiotti. Reporting now on the air and on the Web, CNN keeps you up to date on your safety. Log onto CNN.com/security watch. And stay tuned day and night for the most reliable news about your security.
NGUYEN: And Rick is very well aware that it is fashion week in New York. SANCHEZ: Oh man. I had it crossed off on my calendar for weeks now.
NGUYEN: We have a lady who knows all about what's in and what's out. And we'll talk with her right after the break.
SANCHEZ: Also, it's a world of snow. Are these snow-covered buildings real? We're going to take a closer look in just a bit.
NGUYEN: And from the snow to the warmth of reggae music. Find out whose birthday a whole nation is celebrating. There's a big hint.
We'll be right back.
(COMMERCIAL BREAK)
NGUYEN: There is barely a whiff of springtime in the air, but it is already fall in New York City. Designers are reshaping fall wardrobes as Fashion Week gets into full swing. Word on the street, ponchos, they're out. Patchwork, that's in.
Joining us now is designer Carolina Herrera. She unveiled her newest creations about an hour ago.
Hi there. Thanks for being with us. Can you hear us?
CAROLINA HERRERA, FASHION DESIGNER: Hello?
NGUYEN: Hello. Hi there. Thanks for being with us.
HERRERA: How are you?
NGUYEN: I'm doing wonderful. You just finished your show about an hour or so ago. Tell us, what's on tap for fall? How do you envision it?
HERRERA: Well, I finished a show five minutes ago.
NGUYEN: Oh, OK.
HERRERA: Yes.
NGUYEN: We thought it was just about an hour ago. OK. Regardless, five minutes, an hour ago, what do you have in mind for fall?
HERRERA: Well, for fall, it has been a wonderful fall because I had a hint of the '40s for the collection. But it's very -- the women from the '40s was very elegant and very, you know, glamorous. But I took some hints of it and I show a collection that is very, very ladylike, you can say, very glamorous.
NGUYEN: It seems very form-fitting, yes, very glamorous. Is there a specific color? Because we're looking at some video now and it seems like that fall patchwork design is in effect with your fashions. HERRERA: No. You know, I have a -- the best news of this collection is the proportion of the skirts. It's a different dimension.
They have -- they have movement. It's a very sophisticated collection. It's for daytime.
I use all the men's fabrics. And I translate it in a very feminine way. And that's the hint of the '40s.
NGUYEN: So you're using men's fabric and just putting a female twist on it.
HERRERA: Exactly. With very tiny jackets, very short with new sleeves. And the skirts are lovely. They move very well, and they're very feminine. They make women look really like women.
NGUYEN: Absolutely. You are known for designing elegant, sophisticated pieces. Do you keep the everyday woman in mind? Are these pieces that women can put on and stick in their closet and wear over and over again?
HERRERA: I think so. If you look well in what you're wearing, why don't you wear it over and over again? I think it's nice.
And there is another news in this collection. There is color. Not black. We have -- I had some beautiful colors like mimosa, violet, you know, bright colors.
NGUYEN: You know, every season there seems to be that one color that sticks out. What is that color for fall?
HERRERA: I think -- I think in this collection, there is that raspberry and mimosa that I like very much.
NGUYEN: OK. And quickly, before we go, I want to say that we heard that Renee Zellweger was at the event as well today at your show. What is it about your style that draws these stars? Not only to your show, but to don your outfits on the red carpet?
HERRERA: Yes. I think I've been dressing Renee for the red carpet for the last three years. And I think she -- she fits perfect in this style of clothes that I do. And I think she will -- she always looks great.
She has the right proportion for my clothes. She has that tiny waist. And she knows -- she loves fashion, so she looks good in it.
NGUYEN: Well, you look great too, and so do your designs for fall. We thank you for your time today.
HERRERA: Thank you so much for having me here.
NGUYEN: Absolutely.
HERRERA: Thank you. SANCHEZ: Let's turn things over now to a woman who thought mimosa was only a drink, Jacqui Jeras.
(WEATHER REPORT)
NGUYEN: That was a story we were going to tell, but right now we've got to go.
SANCHEZ: We understand we're changing. We're doing something else.
NGUYEN: Yes.
SANCHEZ: I think we're going to be going to Dana Bash instead. Might be getting very soon some of that tape from the White House with the president meeting with some of his cabinet members. We should say, his new cabinet.
We're going to roll that tape for you in just a little bit. As we do, let's go over to Dana Bash and find out what we expect to hear with this new cabinet.
Dana, over to you.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi there.
And we are just expecting tape, as you said. So hopefully we'll -- we'll know -- let you know once that starts. But we understand that the president talked about what is in his new budget and said he understands the fact that it is not going to be easy to get some of these cuts through. In some cases, cuts in programs, in some cases, just elimination altogether of programs.
But he said -- and we will hear from him again shortly -- that it's important to do this because it is important to reduce the deficit. That is something that is a key goal of this term for the president, something that many in his own party were very upset that he let climb.
Of course, the president came into office, Rick, with a record surplus. And now he's starting his second term with a record deficit. So that is his top goal with his budget, the president said. And we are going to hear from him very shortly.
SANCHEZ: Well, the cuts...
NGUYEN: I think we're getting the tape in right now.
SANCHEZ: Is it -- is it ready? How many seconds? Oh, we have 15 seconds of the tape. And we'll talk about this a little bit on the back half of this, Dana. But the commentary we're getting thus far is that a lot of the cuts are going to have to deal with education.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
