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CNN Live Today
Hurricane Outlook; Mean Season; Jackson Trial
Aired May 16, 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.
DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening "Now in the News."
President Bush presses Congress to pass the energy bill. This hour, the president visits a plant in Virginia, a plant that turns soybeans into fuel. He'll discuss how alternative fuel sources fit into his energy strategy. We'll have live coverage of the speech expected around 11:35 a.m. Eastern.
Defense Secretary Donald Rumsfeld today defends a proposal to close 33 major military bases. Rumsfeld and Joint Chiefs Chairman Richard Myers go before the Base Closure and Realignment Commission. The panel is the first step in the politically-charged battle over which bases will be shut down.
Four people from a small corporate jet are recovering from minor injuries after a major mishap. The plane ran off the runway at an airport in Atlantic City into nearby -- into a nearby bay. Boaters were able to rescue the pilot and passengers. Authorities say the jet will most likely be towed out of the water later today.
A victory in the U.S. Supreme Court today for wineries and wine lovers. Within the last hour, the high court struck down laws banning outside wineries from shipping directly to customers. It was a 5-4 decision. The court ruled that the bans are discriminatory and anti- competitive.
It's that time of day when we like to do a time check around the world. 11:00 a.m. in New York City, 4:00 p.m. in London, 7:00 p.m. in Baghdad.
At CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.
Want to get right to Jacqui Jeras, because today is a big day in the world of hurricanes -- Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Absolutely. Hurricane Preparedness Week this week, Daryn. And coming up at 12:00 Eastern Time today, NOAA is going to be releasing their forecast for the 2005 hurricane season in the Atlantic basin.
We watched NOAA's forecast very closely. We also watched Dr. William Gray from California State University. He has already issued his forecast, and he is predicting 13 named storms this season, seven of which become hurricanes, three of which become major hurricanes.
And you can see the numbers on the bottom here. That is above the average. Very close to what we saw last season.
What did we see? We had 15 named storms, nine of them becoming hurricanes and six of which became major hurricanes. So that's about twice as many as we normally see for major hurricanes. And four of them, of course, made landfall along the U.S. coast.
So now is the time that we really want to start thinking about this. We want to prepare and start talking about hurricane safety.
You need to know if you live in an evacuation area, and you need to start formulating a plan. I was just at a hurricane conference about three weeks ago with Max Mayfield, who's the director of the National Hurricane Center. And he said one of the big things people need to keep in mind is how far do you really need to evacuate.
If you live in Miami, you don't need be driving all the way to Atlanta to get to a safe place. You just need to get far enough inland, away from the threat of the strong winds, away from the threat of the storm surge. So it will be interesting to see what we're going to be hearing from NOAA coming up.
I do believe that they're likely going to concur with Dr. Gray, maybe not the same exact numbers; however, we think that they will see that this will be an above-average year.
These are the names you can expect, starting out with Arlene, Bret, Cindy, Dennis, Emily, Franklin, going all the way down to Wilma. Of course hopefully we're not going to have to use any of those latter names. Hopefully it will stay a little bit quieter than that.
The Atlantic fairly quiet right now. You can see a little bit of a flare-up at this time in the Caribbean. But conditions are not favorable for tropical developments. And we still have two weeks to go before we start to see many of these storms develop, but sometimes they can happen early.
Just a few years ago, Daryn, we had our first named tropical storm in the month of April. So, again, 12:30 Eastern, we're going to bring that to you live on Wolf Blitzer's show.
KAGAN: All right. Two weeks is too soon for folks in Florida. I can tell you that.
JERAS: Yes, it is. It's been seven months of quiet now.
KAGAN: Whew. All right. Jacqui, thank you.
Well, Florida might as well have had a "kick me" sign back on it in 2004. Four hurricanes in just six weeks. Life is still not back to normal in some areas.
Our John Zarrella has that story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Don't mess with Mother Nature. That's for sure. By golly.
JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): Between August 13 and September 25, four hurricanes slammed Florida and doled out their misery across a wide swathe of the eastern United States. But it was the people of Florida who took it on the chin.
UNIDENTIFIED MALE: Fire rescue.
ZARRELLA: Communities from the panhandle to south Florida were left in ruin.
UNIDENTIFIED FEMALE: I'm a red hat lady. I belong to the Red Hats. So I found my red hat.
ZARRELLA: Many people, like Mary Sue Davis (ph), were hit more than once. First Frances, then Jeanne.
UNIDENTIFIED FEMALE: When I walked out yesterday, the door, I thought I'd never come back and even see walls again.
ZARRELLA: Charley, Frances, Ivan and Jeanne were a collective test of how much the people of Florida could endure. By the numbers, state officials say, 9.5 million people were evacuated. The storms were directly or indirectly responsible for the deaths of 117 Floridians. Storm victims received 78.5 million pounds of ice.
UNIDENTIFIED FEMALE: You need any more?
ZARRELLA: Fourteen million MREs and 9.8 million gallons of water -- 8.5 million utility customers lost power. It's believed the four storms caused more than $40 billion in damage.
For hurricane forecasters and researchers, this mean season is one to be analyzed and dissected and written about for decades. For the people who lived through it, it is a season they would rather just forget.
John Zarrella, CNN, Miami.
(END VIDEOTAPE)
KAGAN: Here is how we can help. You can log on any time and retrace the hurricane season of 2004. Go to cnn.com/hurricanes. You're also there going to find safety tips, along with an interactive guide that explains how a hurricane forms.
And now on to Iraq, where the insurgency rage is on. Roadside bombings and drive-by shootings claimed more lives today. Among the latest victims, two journalists who were working for a Kuwaiti newspaper were killed by gunmen south of Baghdad today. Their driver was also killed.
The violence today follows the grim discovery of dozens of bodies at locations around the country. Police say some of the victims were blindfolded with their hands tied behind their backs. Many had been shot in the head. A spokesman for Iraq's prime minister condemned the killings and said security forces were determined to find those responsible.
Secretary of State Condoleezza rice says U.S. and Iraqi forces are making progress despite the latest wave of violence. Rice paid a surprise visit to Iraq yesterday. She met with the new leaders and visited the Kurdish area of northern Iraq. Rice says part of her mission was to stress the importance of drafting an Iraqi constitution by August. She also emphasized the need to include the Sunni minority in that process.
"Newsweek" magazine is backtracking and apologizing over a story that touched off deadly protests. That report -- in that report, interrogators at Guantanamo Bay desecrated the Quran and it sparked riots in Afghanistan and elsewhere in the Muslim world. Officials say at least 15 people were killed and dozens more injured. Now "Newsweek" says one of its sources could not confirm an account of a Quran being flushed down a toilet.
(BEGIN VIDEO CLIP)
DAN KLAIDMAN, "NEWSWEEK" MAGAZINE: We did go through the usual vetting that we do for even sensitive stories like this. As our story points out, first we relied on a source that has always been reliable in the past, someone highly placed, a knowledgeable official. And we ran it by a public affairs person at southern command who wouldn't comment because there was a pending investigation. But we went much further.
We actually provided the story to a very senior, knowledgeable Pentagon official who took issue with one aspect of the story. We asked if it was accurate. He took issue with one aspect, which we took out of the story, changed, but did not take issue with any of the other parts of the story that we ultimately published.
So this was an honest mistake. We are obviously not very happy about it and -- and trying to deal with it as openly as we can.
(END VIDEO CLIP)
KAGAN: Well, "Newsweek" says that when Pentagon spokesman Larry DiRita was told when the source said, DiRita exploded, "People are dead because of what this S.O.B. said. How can he be credible now?"
DiRita blamed the article for the violence and he told CNN, "People are dying. They are burning American flags. Our forces are in danger."
Turning to our "World Wrap" now.
He was once Russia's richest man. Now it appears a Russian oil magnet will be found guilty of fraud and tax evasion. The judge began reading the verdicts against Nicola Perovsky (ph) today before adjourning. The judge did not hand down formal verdicts against the oil tycoon. That is expected to happen tomorrow.
A new development in the standoff over North Korea's nuclear program. Officials from the two Koreas met this morning and South Korea says it's getting serious. It says it's ready to make a new and serious offer if North Korea returns to six-nation nuclear talks. Those talks included the U.S. and have been stalled for nearly a year. No details on what South Korea is putting on the table for that offer.
And in Hong Kong, towering buns of fun. Twelve people competed in a bun-snatching contest, part of an ancient tradition. They're fixed to ropes. Competitors raced up a 46-foot tower to see who could grab the most buns on the way up. Before this year, the race had been stopped after a 1978 tower collapse that injured 108 people.
Michael Jackson's former lawyer testifies. Did he help the defense?
A new cancer treatment's impact on women's lives. Details are coming up in our "Daily Dose" segment.
And President Bush is talking energy and alternative fuel sources today. He'll be speaking live from a refinery near Richmond, Virginia. That's about 25 minutes away. And we will take you there live as soon as it happens.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
(COMMERCIAL BREAK)
KAGAN: To California now. The Michael Jackson child molestation trial resumes in Santa Maria this hour. Two of the singer's former employees may take the stand.
Our Ted Rowlands is in Santa Maria with the latest developments.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): As Michael Jackson's defense case moves into week three, Jackson's former attorney, Mark Geragos, is expected to be back on the stand. Last week, Geragos testified that he was the one that ordered video surveillance of the accuser's family. Geragos said he thought the family might "shake down his client," Michael Jackson.
CRAIG SMITH, LEGAL ANALYST: What Geragos has really done is he is distancing Michael Jackson from the conspiracy.
ROWLANDS: Geragos also explained what he thought was Michael Jackson's motivation for sleeping in the same bed as children, saying it was a form of, quote, "unconditional love."
JIM MORET, LEGAL ANALYST: He said, "What I drew was a gentleman who was childlike in his love for kids. I saw someone ripe as a target and I moved in to protect him."
ROWLANDS: Judge Rodney Melville was clearly upset with Jackson's attorney, Thomas Mesereau, over what the judge called a misrepresentation to the court. At issue is the attorney-client waiver that allowed Geragos to take the stand. The dispute must be resolved before Geragos resumes his testimony, scheduled for Friday.
It's expected that more celebrity witnesses could be called to the stand within the next few weeks, including Elizabeth Taylor, Jay Leno and Larry King. Actor Macaulay Culkin testified last week. He said claims by a former Jackson employee that Jackson molested him at Neverland Ranch were "absolutely ridiculous."
Ted Rowlands, CNN, Los Angeles.
(END VIDEOTAPE)
KAGAN: Health news coming up next. And there's some encouraging news for cancer patients. Patients with some deadly blood diseases and with breast cancer get some new reason to hope. The details are coming up in our "Daily Dose" segment.
(COMMERCIAL BREAK)
KAGAN: In health news, a surprising and encouraging development involving an experimental cancer drug. Doctors were hoping it would relieve the symptoms of a deadly blood disorder. It's known as MDS. But the drug ended up treating the disease itself. In about half the people who took it, the cancer became undetectable. MDS occurs when the bone marrow doesn't make enough healthy blood cells.
A drug used to treat an aggressive form of breast cancer is giving new hope to women battling the disease. Medical Correspondent Elizabeth Cohen has one woman's story of survival in our "Daily Dose" of health news.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): She found the lump herself one morning.
ELIZABETH RUSSO, HERCEPTIN PATIENT: I was petrified.
COHEN: Then her doctor confirmed the worst.
RUSSO: I had only been married for about a year and a half, and I felt like my world was falling down around me. You know, the first question that goes through your head is, am I going to die? And that really was what I was thinking at the time. It was extremely frightening.
COHEN: At age 29, Elizabeth Russo had breast cancer. And there was more.
Doctors told her she had a particular kind that grew quickly and was more likely to come back. This happens to one out of every four patients.
But there was a twist. Because she had this particular type of tumor, she was a candidate for a study on a drug called herceptin. Doctors knew it worked when the cancer had spread to other parts of the body, but they weren't sure if it could help women like Elizabeth, who were at the early stages. At first she would you want sure what to do because the drug in a small number of women had caused heart failure.
RUSSO: There was a little bit of fear there, but obviously, in my situation, the chances absolutely outweighed the frighteningness of the whole situation. I mean, I had to take the risk because there was still the chance that I could die.
COHEN: She took herceptin, along with chemotherapy and radiation, and a year after finding that lump she's cancer-free. In the studies at the National Cancer Institute, when women did not take herceptin 30 percent of them had the cancer come back. When they did take herceptin, only 15 percent had the cancer come back. It cut the reoccurrence rate in half, an extraordinary impact, experts say, meaning this drug is one of the most promising in a new generation of cancer treatments.
Unlike chemotherapy or radiation, which attack healthy and unhealthy tissue, medicines like herceptin are designed to attack only the specific protein that causes problems.
DR. DAVID JOHNSON, VANDERBILT CANCER INSTITUTE: Targeted therapies which we've talked a lot about for the last couple of years are really coming to fruition.
COHEN: Now Elizabeth Russo, once afraid she would die, is alive for the big moments, like her god son's christening last month. The cancer could come back, but now it seems that's less likely.
Elizabeth Cohen, CNN reporting.
(END VIDEOTAPE)
KAGAN: For your "Daily Dose" of health news online, log on to our Web site. You'll find the latest medical stories, special reports and a health library. The address is cnn.com.
We're just about 10 minutes away from the president's energy policy address. He'll be speaking at a Virginia refinery. And we'll go there live as soon as it begins.
(COMMERCIAL BREAK)
KAGAN: This is live pictures from Virginia. President Bush is at this refinery there talking about his energy policy and about alternative fuels. This -- at this plant they make 1.5 million gallons of biodiesel fuel every year from soybean oil. President Bush coming to the microphone. Let's listen in.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all.
(APPLAUSE)
Please be seated. Thanks for coming. Thanks for the warm welcome. And thank you for giving me a chance to get out of Washington. I'm proud to be the first sitting president to visit this part of Virginia.
(APPLAUSE)
They tell me George Washington came before he was president. I thought it was time for another George W. to stop by.
(APPLAUSE)
I appreciate the folks here at Virginia Biodiesel for showing me around. You know, I love the innovative spirit of our entrepreneurs in this country. And the folks here have got incredible vision, and they're willing to take risks to innovate.
What I think is interesting is they have combined farming and modern science. And by doing so, you're using one of the world's oldest industries to power some of the world's newest technology. And after all, they've taken soybeans and converted them to fuel and put them into brand new caterpillar engines.
(APPLAUSE)
Biodiesel is one of our nation's most promising alternative fuel sources. And by developing biodiesel, you're making this country less dependent on foreign sources of oil.
(APPLAUSE)
As my friend George Allen said, that's the reason I've come. I want to talk about the need for this country to have a comprehensive energy strategy. I appreciate George's leadership and I appreciate his friendship. You've got a fine United States senator in Senator George Allen.
(APPLAUSE)
And today I took a helicopter down from -- from the White House with our secretary of Agriculture, Mike Johanns.
Mike, thank you for coming.
Mike is from the state of Nebraska.
(APPLAUSE)
For those of you involved with agriculture, he knows something about it, you'll be happy to hear. He was raised on a dairy farm. He's a good man, and I really appreciate he and his lovely wife. He was the governor of Nebraska when I called him, and he quit and came to Washington.
And I want to thank you for serving our country, Michael. Thank you very much.
(APPLAUSE)
I want to thank the members of the congressional delegation who have joined us, Congressman Bobby Scott, Congresswoman Joanne Davis, Congressman Eric Cantor, Randy Forbes, Congresswoman Thelma Drake. She brought her husband, Ted, with her. Thank you all for serving. I enjoy working with you all.
I want to thank a member of the State House who is here.
KAGAN: Let's go ahead and jump in here while he's doing the formalities and saying hello. President Bush in Virginia today talking about alternative fuel energy for that, and a little bit of other news of the day.
Let's bring in our Dana Bash, who stayed behind at the White House
Hi, Dana.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Daryn.
Well, what you just heard from the president is an additional push on his energy reform agenda. This is something, this is a piece of legislation that passed the House of Representatives. He wants it to get through the Senate. This is something he's been pushing since he started here in Washington more than five -- or about five years ago.
And what he's doing, as you just heard the president say, is talking about a plant that he's touring there where they change -- move soybeans and make that into diesel fuel. What the president always says is that he wants the U.S. to be less dependent on oil, specifically foreign oil, and that can be done through a long-term energy reform bill. But you're likely to hear the president say today what we've heard several times over the past month or two, which is that this is not going to do anything for today's high gas prices -- Daryn.
KAGAN: Another controversy brewing with "Newsweek" magazine in a report that U.S. military officials flushed a Quran down a toilet in Guantanamo Bay. "Newsweek" now going back on that story, and the White House getting involved in this controversy, Dana.
BASH: Daryn, it's really been interesting to watch the White House reaction to this, this morning. As you said, "Newsweek" says that they're sorry. The White House essentially is saying today, that's not good enough.
In a conversation with Scott McClellan, the White House spokesman, he said, quote, "It's puzzling that while 'Newsweek' now acknowledges they got it wrong, they refuse to retract the story." He then went on to say there was a certain journalistic standard that should be met but that was not met in this case.
So the White House is essentially going after journalistic ethics and saying, additionally, in the phone conversation Scott McClelland said that this was, by "Newsweek's" admission, a single anonymous source, that they now can't substantiate in terms of the allegation that was made and said several times in the conversation, that it was puzzling that the magazine is not retracting the story.
Because, as you see on the screen now, he reminded me, as the White House is reminding others, that this apparently sparked riots that apparently cost lives in Afghanistan and other parts of the Middle East.
So what we are seeing this morning is the next move in the White House damage control operation. We first saw this last week when the story came out, when the riots started, by senior officials saying that they do not believe this, that they don't believe this is something that is in agreement with U.S. values. Now you're seeing them essentially go after "Newsweek," push harder on the journalism here.
But you also hear from officials that they believe that the, quote, "genie is out of the bottle." One other thing I should point out, Daryn, is that, talking to Democrats on Capitol Hill, they say regardless of whether or not this particular issue may or may not be true, they point out that there are other allegations about what goes on at Guantanamo that need to be investigated, investigated independently. And that this was not a fire that took a lot to really stoke in terms of what the U.S. image is abroad and the sad image abroad -- Daryn.
KAGAN: Dana, another hot topic out there, North Korea, South Korea saying there's a possibility that they believe they can get the North Koreans back at the negotiating table. Any word on that from the White House?
BASH: Well, certainly, that would be music to the White House ears, Daryn. You know, they have been trying to get these six-party talks, these multilateral talks back on track. They have been stalled for about a year. And we heard some new words from the national security adviser, Stephen Hadley, on CNN yesterday, warning North Korea that they should not test any nuclear weapon that they might have, no nuclear test, that that would be certainly seen as something that would require further action at the United Nations, maybe some sanctions by the U.S. and other members of the talks.
So anything that the South Koreans can do would certainly be very -- a very welcome move here at the White House -- Daryn.
KAGAN: All right. Dana Bash at the White House. Let's go back to Virginia and listen in to President Bush.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... dignified retirement. If you're getting your check, you don't have anything to worry about on this issue. You need to worry about your children and grandchildren when it comes to Social Security and make sure we have a retirement system that works for a future generation of Americans. Congress must work with me to strengthen and save Social Security for a generation to come.
And to keep creating jobs and to keep this economy growing, it is important for our country to understand we need an affordable, reliable supply of energy. And that starts with pursuing policies to make prices reasonable at the pump.
Today's gasoline prices and diesel prices are making it harder for our families to meet their budgets. These prices are making it more expensive for farmers to produce their crop. It's more difficult for businesses to create jobs. Americans are concerned about high prices at the pump, and they're really concerned as they start making their travel plans. And I understand that.
I wish I could just wave a magic wand and lower the price at the pump. I would do that. That's not how it works. You see, the high prices we face today have been decades in the making.
Four years ago I laid out a comprehensive energy strategy to address our energy challenges. If Congress hadn't passed energy legislation. For the sake of the American consumers, it is time to confront our problems now and not pass them on to future Congresses and future generations.
The increase in the price of crude oil is largely responsible for the higher gas prices and diesel prices that you're paying at the pump. For many years, most of the crude oil refined into gasoline in America came from home, came from domestic oil fields.
In 1985, 75 percent of the crude oil used in U.S. refineries came from American sources. Only about 25 percent came from abroad. The past few decades we've seen a dramatic change in our energy equation. American gasoline consumption has increased by about a third, while our crude production has dropped and oil imports have risen dramatically.
KAGAN: We've been listening in to President Bush. He is at a biodiesel fuel plant in Virginia, talking about his energy policy. One part of that policy is looking at developing alternative sources of energy. At this particular plant they take soybean oil and turn it into fuel.
Much more on the president's energy policy, other news, straight ahead, as well.
(COMMERCIAL BREAK)
KAGAN: Can you believe it? It's time to talk hurricanes again already. Jacqui Jeras has that on her brain today for a good reason.
Hi, Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Hi, Daryn.
Big announcement today coming in from NOAA. That's at 12:30 Eastern. They're going to be releasing their forecast for the upcoming season. Really kind of a sore subject for many of you, especially those folks that live in parts of Florida that got hit so hard last year.
Of course, four major hurricanes last year made landfall on the U.S. coastline. And some of these people still have not recovered. There's still a lot of damage out there. I was just on the Emerald Coast here, in the panhandle of Florida two weeks ago and still saw a lot of blue tarps, people having problems with some of their insurance claims.
So it's hard to think about another hurricane season. But we need to do it. It's necessary. We're just two weeks away from the official beginning of that hurricane season, June 1 through November 30. And this week is Hurricane Preparedness Week. And now is the time that you want to start thinking about what you're going to do when that big storm does arrive.
Everything you ever wanted to know about hurricanes and more about what happened last season, about what you can do to prepare yourself and about the upcoming forecast, all of this is on CNN.com/hurricanes. So you can logon to this throughout the day today.
And again, 12:30 Eastern Time during Wolf Blitzer's show we are going to bring you all of that information live. And I'll also come on and talk about that a little bit more. But we think NOAA is probably going to say above average, just like Dr. William Gray from Colorado State University.
(WEATHER REPORT)
KAGAN: Thank you. We look forward to that hurricane information.
Meanwhile information from Hollywood. Jane Fonda, Jennifer Lopez drawing audiences to their new comedy. It's called "Monster in Law." The movie was tops at the box office over the weekend with $24 million.
It's officially the start of "Star Wars" week. The last film hits theaters Thursday. Some have already seen the finished product. Many of the stars of "Star Wars" were on hand as Episode III was shown at the Cannes Film Festival yesterday.
As CNN's Meara Erdozain reports, you don't necessarily have to be in a theater to experience the force.
(BEGIN VIDEOTAPE)
MEARA ERDOZAIN, CNN CORRESPONDENT (voice-over): At first glance this looks like an average guy at work. Take a closer look, though, and you'll notice something odd: Princess Leia, Darth Vader, R2D2. He's not your average guy at all. He's Jim Knight, or Jim "Jedi" Knight to his friends.
And never mind his office, Jim's home really gives the game away. It's like a museum, packed to the brim with "Star Wars" memorabilia. Age 30, he's been collecting since he was 4.
JIM KNIGHT, COLLECTOR OF "STAR WARS" MEMORABILIA: This particular figure here is my original figure from when I was a child. Obviously, Boba Fett's quite a strange character in the "Star Wars" universe, because he was only briefly in "Empire Strikes Back."
As a child it would have roughly cost about, probably about $2, now, you're looking at probably about $400 or $500.
ERDOZAIN: "Star Wars" merchandising sales have generated around $9 billion, with many individual items costing thousands.
The Attat (ph) is Jim's most expensive item. It set him back around $2,000.
KNIGHT: It's hard to explain what the fascination with it is, really, all the collectibles, everything they're releasing now, the replicas are absolutely amazing. And they just keep you entwined in the universe.
ROBOTIC VOICE: Your journey to the dark side.
ERDOZAIN: Modern technology means toys can do far more than they could even a decade ago. Some items are almost as good as the real thing. High-tech toys, plus a flow of new movies over the years has helped keep the "Star Wars" brand fresh. Experts say it explains why the merchandise continues to sell.
UNIDENTIFIED MALE: The main characters have been iconic, like Darth Vader, C3PO, R2D2. Those characters are (ph) -- they've always introduced new characters that fit within that fantastical world. And, therefore, give a new generation of fans something of their own to grab hold of.
JAMES EARL JONES, VOICE OF DARTH VADER: Asteroids do not concern me, Admiral. I want that ship.
ERDOZAIN: Serious collectors want to collect everything. Jim spent around $20,000. And even then it's hard to know when to stop.
(on camera) This is the most sought after collectible item. It's a galactic passport that enables me to see every single "Star Wars" movie ever made in one sitting here in Leicester Square in England.
The problem is they're hard to come by, and they're expensive. This one cost almost $800, but luckily, it will still be worth something once the movie is over, because collectors will always be looking for one of these.
(voice-over) Meara Erdozain, CNN, London.
(END VIDEOTAPE)
KAGAN: Well, a different kind of transportation ahead. When airfares rise, trying to get the best travel deals can be tough. We have tips on how to lessen the cost. Also, find deals to exotic locations, ahead in our getaway segment.
(COMMERCIAL BREAK)
KAGAN: We will get to getaways in just a minute. First, we want to tell you about developing news out of Kuwait. Political news, parliament there on Monday approved women's political rights. And that could clear the way for the first time ever for women to run for office in that country.
However, there is a "however" here. Some fundamentalist Muslims included an article in the bill that would require women to follow Islamic law. And it's not clear how much that is going to restrict women's political rights in Kuwait. An ongoing battle in that country. More on that ahead, perhaps on wolf Blitzer at the top of the hour
Right now, let's turn to travel news. And in the travel business, there is high season and there's low season and in between there's something they call shoulder season. It's a travel time that offers good weather, smaller crowds and best of all, lower prices. Hello.
Hillary Geronemus is associate editor at "Travel & Leisure" magazine. And she is in New York this morning, looking at shoulders for us. No crying on shoulders about this news, Hillary?
HILLARY GERONEMUS, ASSOCIATE EDITOR, "TRAVEL & LEISURE": No, not at all. It's a great time to travel.
KAGAN: So let's look at different times and different places. First, May, where we are now, Costa Rica, a great time to go there.
GERONEMUS: Yes, Costa Rica is great in May, because the high season just ended in April. And technically it's the beginning of the rainy season. But the heavy rains don't really come until later on in the season.
And a lot of hotels offer great deals, like the Four Seasons, Peninsula Papagaia (ph). Some of the newer properties, it's eco luxury all the way. And they drop the rates by about $100, from $475 to $375.
KAGAN: Still a little steep, but you know, every little bit helps.
Looking forward down the year, in June -- this is the place I love -- Mexico's Baja Peninsula, Cabo (ph).
GERONEMUS: Cabo (ph) is the hot destination now among honeymooners, destination weddings and celebrities. And June's a great time. The weather is a nice, warm, 80 degrees. And a lot of the luxury hotels do drop their rates a little bit. Some don't even drop the rates, which proves it's a great time of year. But La Santana (ph) drops it about $150, from $600 to $450.
KAGAN: and I want to keep it in the U.S. Look to September to Hawaii.
GERONEMUS: Yes, Hawaii is great in September. Now Hawaii is kind of the exception to the rule, where there is no high or low season. But in September the families tend to go away. The kids are back in school. The parents are back at work.
A lot of the hotels offer a little incentive to people coming back, like the Fairmount Kailani (ph). This is a Travel Major World's Best Property, and they're offering a fifth night free promotion, which saves you about $385.
KAGAN: And let's move it east to Nantucket in October. Starting to get a little bit chillier there.
GERONEMUS: A little chili, but October is a great time to visit Nantucket because the crowds are gone. You have the island all to yourself, which makes reservations easy to get at restaurants and hotels with great rates, as well. The Veranda House, which is a beautiful gingerbread trimmed historic inn right on the bay, is offering a great deal. They lower the rates about $50.
KAGAN: All great ideas. Putting vacation on our brain. Hillary, thank you.
GERONEMUS: Thank you.
KAGAN: Let's go ahead and find out what's happening at the top of the hour, "NEWS FROM CNN." Wolf Blitzer is in New York City today.
Hi, Wolf.
WOLF BLITZER, HOST, "NEWS FROM CNN": Hi, Daryn. Thanks very much. A busy hour ahead for all of us here on "NEWS FROM CNN."
Tracking the fallout, "Newsweek" magazine apologizing for an article that sparked a deadly wave of violence in Afghanistan. We're live on the damage control, what happens next.
Also, on the heels of one of the most active hurricane seasons in years, what are forecasters now predicting will happen this year? We'll find out in a live news conference coming up in the next hour. First official word on the storms.
Watch for all those stories. Much more coming up on "NEWS FROM CNN." Daryn, in the meantime, back to you
KAGAN: All right. Wolf, you enjoy New York City today.
BLITZER: Thanks.
KAGAN: Check of business news is coming up next after this break.
(COMMERCIAL BREAK)
KAGAN: Plenty of smiles on Wall Street today for this Monday morning. We check in with Kathleen Hays at the New York Stock Exchange.
Hi, Kathleen.
(STOCK REPORT)
KAGAN: Kathleen, thank you.
Graduation just days away from a lot of college seniors. Many are now worrying about an age-old rite of passage. They've got to find a job. Veronica de la Cruz at CNN.com looks at what they should expect.
(BEGIN VIDEOTAPE)
VERONICA DE LA CRUZ, CNN CORRESPONDENT: As the summer draws near, so does graduation for college seniors. So before you don that cap and gown, get ready for the real world with five must-haves at CNN.com/us.
Good news for college grads looking for their first job. A recent survey by CareerBuilder found that more than 60 percent of managers say they plan to hire recent grads, and more than 30 percent say they plan to increase entry level salaries.
The survey also reveals the top five things grads can do to make the most of their search. Twenty-eight percent of hiring managers have said relevant experience is the most important factor in their hiring decision. Professionalism during the interview is also key. So invest in a professional business suit and arrive well dressed and on time.
If you're looking for a place to start your search, try CareerBuilder's job search engine on CNN.com.
After you've landed that first job, don't lose it. Logon for a list of top mistakes college grads make in their first three months on the job. Best of luck in your search.
From the dotcom news desk, I'm Veronica de la Cruz.
(END VIDEOTAPE)
KAGAN: And that's going to do it for me. I'm Daryn Kagan. I'll be right back here on Tuesday morning. We've tracked Wolf Blitzer down. He's in New York City today at the Big Apple.
Hey, Wolf.
BLITZER: It's a lovely day in New York, a lovely day to be in New York. Thanks very much, Daryn.
We're watching lots of news unfold this hour on "NEWS FROM CNN."
Magazine fallout: "Newsweek" magazine backing off a report that sparked deadly violence in much of the Muslim world. The White House wants more, more reaction from "Newsweek." We're covering this story from all sides of the story. Reaction in Washington. We'll also get into the issue of journalistic ethics.
And terror in Iraq: Who's behind the insurgency, the daily slaughter of innocent lives? Joining us from Baghdad this hour U.S. Army Colonel Ben Hodges, operations officer for the multinational forces in Iraq.
And later, big storms rising, lots of them this hurricane season. The national weather forecasters offering their predictions. We're standing by for their news conference, first official word on what we can expect during this coming hurricane season that opens up in the weeks and months to come.
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 May 16, 2005 - 10:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening "Now in the News."
President Bush presses Congress to pass the energy bill. This hour, the president visits a plant in Virginia, a plant that turns soybeans into fuel. He'll discuss how alternative fuel sources fit into his energy strategy. We'll have live coverage of the speech expected around 11:35 a.m. Eastern.
Defense Secretary Donald Rumsfeld today defends a proposal to close 33 major military bases. Rumsfeld and Joint Chiefs Chairman Richard Myers go before the Base Closure and Realignment Commission. The panel is the first step in the politically-charged battle over which bases will be shut down.
Four people from a small corporate jet are recovering from minor injuries after a major mishap. The plane ran off the runway at an airport in Atlantic City into nearby -- into a nearby bay. Boaters were able to rescue the pilot and passengers. Authorities say the jet will most likely be towed out of the water later today.
A victory in the U.S. Supreme Court today for wineries and wine lovers. Within the last hour, the high court struck down laws banning outside wineries from shipping directly to customers. It was a 5-4 decision. The court ruled that the bans are discriminatory and anti- competitive.
It's that time of day when we like to do a time check around the world. 11:00 a.m. in New York City, 4:00 p.m. in London, 7:00 p.m. in Baghdad.
At CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.
Want to get right to Jacqui Jeras, because today is a big day in the world of hurricanes -- Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Absolutely. Hurricane Preparedness Week this week, Daryn. And coming up at 12:00 Eastern Time today, NOAA is going to be releasing their forecast for the 2005 hurricane season in the Atlantic basin.
We watched NOAA's forecast very closely. We also watched Dr. William Gray from California State University. He has already issued his forecast, and he is predicting 13 named storms this season, seven of which become hurricanes, three of which become major hurricanes.
And you can see the numbers on the bottom here. That is above the average. Very close to what we saw last season.
What did we see? We had 15 named storms, nine of them becoming hurricanes and six of which became major hurricanes. So that's about twice as many as we normally see for major hurricanes. And four of them, of course, made landfall along the U.S. coast.
So now is the time that we really want to start thinking about this. We want to prepare and start talking about hurricane safety.
You need to know if you live in an evacuation area, and you need to start formulating a plan. I was just at a hurricane conference about three weeks ago with Max Mayfield, who's the director of the National Hurricane Center. And he said one of the big things people need to keep in mind is how far do you really need to evacuate.
If you live in Miami, you don't need be driving all the way to Atlanta to get to a safe place. You just need to get far enough inland, away from the threat of the strong winds, away from the threat of the storm surge. So it will be interesting to see what we're going to be hearing from NOAA coming up.
I do believe that they're likely going to concur with Dr. Gray, maybe not the same exact numbers; however, we think that they will see that this will be an above-average year.
These are the names you can expect, starting out with Arlene, Bret, Cindy, Dennis, Emily, Franklin, going all the way down to Wilma. Of course hopefully we're not going to have to use any of those latter names. Hopefully it will stay a little bit quieter than that.
The Atlantic fairly quiet right now. You can see a little bit of a flare-up at this time in the Caribbean. But conditions are not favorable for tropical developments. And we still have two weeks to go before we start to see many of these storms develop, but sometimes they can happen early.
Just a few years ago, Daryn, we had our first named tropical storm in the month of April. So, again, 12:30 Eastern, we're going to bring that to you live on Wolf Blitzer's show.
KAGAN: All right. Two weeks is too soon for folks in Florida. I can tell you that.
JERAS: Yes, it is. It's been seven months of quiet now.
KAGAN: Whew. All right. Jacqui, thank you.
Well, Florida might as well have had a "kick me" sign back on it in 2004. Four hurricanes in just six weeks. Life is still not back to normal in some areas.
Our John Zarrella has that story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Don't mess with Mother Nature. That's for sure. By golly.
JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): Between August 13 and September 25, four hurricanes slammed Florida and doled out their misery across a wide swathe of the eastern United States. But it was the people of Florida who took it on the chin.
UNIDENTIFIED MALE: Fire rescue.
ZARRELLA: Communities from the panhandle to south Florida were left in ruin.
UNIDENTIFIED FEMALE: I'm a red hat lady. I belong to the Red Hats. So I found my red hat.
ZARRELLA: Many people, like Mary Sue Davis (ph), were hit more than once. First Frances, then Jeanne.
UNIDENTIFIED FEMALE: When I walked out yesterday, the door, I thought I'd never come back and even see walls again.
ZARRELLA: Charley, Frances, Ivan and Jeanne were a collective test of how much the people of Florida could endure. By the numbers, state officials say, 9.5 million people were evacuated. The storms were directly or indirectly responsible for the deaths of 117 Floridians. Storm victims received 78.5 million pounds of ice.
UNIDENTIFIED FEMALE: You need any more?
ZARRELLA: Fourteen million MREs and 9.8 million gallons of water -- 8.5 million utility customers lost power. It's believed the four storms caused more than $40 billion in damage.
For hurricane forecasters and researchers, this mean season is one to be analyzed and dissected and written about for decades. For the people who lived through it, it is a season they would rather just forget.
John Zarrella, CNN, Miami.
(END VIDEOTAPE)
KAGAN: Here is how we can help. You can log on any time and retrace the hurricane season of 2004. Go to cnn.com/hurricanes. You're also there going to find safety tips, along with an interactive guide that explains how a hurricane forms.
And now on to Iraq, where the insurgency rage is on. Roadside bombings and drive-by shootings claimed more lives today. Among the latest victims, two journalists who were working for a Kuwaiti newspaper were killed by gunmen south of Baghdad today. Their driver was also killed.
The violence today follows the grim discovery of dozens of bodies at locations around the country. Police say some of the victims were blindfolded with their hands tied behind their backs. Many had been shot in the head. A spokesman for Iraq's prime minister condemned the killings and said security forces were determined to find those responsible.
Secretary of State Condoleezza rice says U.S. and Iraqi forces are making progress despite the latest wave of violence. Rice paid a surprise visit to Iraq yesterday. She met with the new leaders and visited the Kurdish area of northern Iraq. Rice says part of her mission was to stress the importance of drafting an Iraqi constitution by August. She also emphasized the need to include the Sunni minority in that process.
"Newsweek" magazine is backtracking and apologizing over a story that touched off deadly protests. That report -- in that report, interrogators at Guantanamo Bay desecrated the Quran and it sparked riots in Afghanistan and elsewhere in the Muslim world. Officials say at least 15 people were killed and dozens more injured. Now "Newsweek" says one of its sources could not confirm an account of a Quran being flushed down a toilet.
(BEGIN VIDEO CLIP)
DAN KLAIDMAN, "NEWSWEEK" MAGAZINE: We did go through the usual vetting that we do for even sensitive stories like this. As our story points out, first we relied on a source that has always been reliable in the past, someone highly placed, a knowledgeable official. And we ran it by a public affairs person at southern command who wouldn't comment because there was a pending investigation. But we went much further.
We actually provided the story to a very senior, knowledgeable Pentagon official who took issue with one aspect of the story. We asked if it was accurate. He took issue with one aspect, which we took out of the story, changed, but did not take issue with any of the other parts of the story that we ultimately published.
So this was an honest mistake. We are obviously not very happy about it and -- and trying to deal with it as openly as we can.
(END VIDEO CLIP)
KAGAN: Well, "Newsweek" says that when Pentagon spokesman Larry DiRita was told when the source said, DiRita exploded, "People are dead because of what this S.O.B. said. How can he be credible now?"
DiRita blamed the article for the violence and he told CNN, "People are dying. They are burning American flags. Our forces are in danger."
Turning to our "World Wrap" now.
He was once Russia's richest man. Now it appears a Russian oil magnet will be found guilty of fraud and tax evasion. The judge began reading the verdicts against Nicola Perovsky (ph) today before adjourning. The judge did not hand down formal verdicts against the oil tycoon. That is expected to happen tomorrow.
A new development in the standoff over North Korea's nuclear program. Officials from the two Koreas met this morning and South Korea says it's getting serious. It says it's ready to make a new and serious offer if North Korea returns to six-nation nuclear talks. Those talks included the U.S. and have been stalled for nearly a year. No details on what South Korea is putting on the table for that offer.
And in Hong Kong, towering buns of fun. Twelve people competed in a bun-snatching contest, part of an ancient tradition. They're fixed to ropes. Competitors raced up a 46-foot tower to see who could grab the most buns on the way up. Before this year, the race had been stopped after a 1978 tower collapse that injured 108 people.
Michael Jackson's former lawyer testifies. Did he help the defense?
A new cancer treatment's impact on women's lives. Details are coming up in our "Daily Dose" segment.
And President Bush is talking energy and alternative fuel sources today. He'll be speaking live from a refinery near Richmond, Virginia. That's about 25 minutes away. And we will take you there live as soon as it happens.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
(COMMERCIAL BREAK)
KAGAN: To California now. The Michael Jackson child molestation trial resumes in Santa Maria this hour. Two of the singer's former employees may take the stand.
Our Ted Rowlands is in Santa Maria with the latest developments.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): As Michael Jackson's defense case moves into week three, Jackson's former attorney, Mark Geragos, is expected to be back on the stand. Last week, Geragos testified that he was the one that ordered video surveillance of the accuser's family. Geragos said he thought the family might "shake down his client," Michael Jackson.
CRAIG SMITH, LEGAL ANALYST: What Geragos has really done is he is distancing Michael Jackson from the conspiracy.
ROWLANDS: Geragos also explained what he thought was Michael Jackson's motivation for sleeping in the same bed as children, saying it was a form of, quote, "unconditional love."
JIM MORET, LEGAL ANALYST: He said, "What I drew was a gentleman who was childlike in his love for kids. I saw someone ripe as a target and I moved in to protect him."
ROWLANDS: Judge Rodney Melville was clearly upset with Jackson's attorney, Thomas Mesereau, over what the judge called a misrepresentation to the court. At issue is the attorney-client waiver that allowed Geragos to take the stand. The dispute must be resolved before Geragos resumes his testimony, scheduled for Friday.
It's expected that more celebrity witnesses could be called to the stand within the next few weeks, including Elizabeth Taylor, Jay Leno and Larry King. Actor Macaulay Culkin testified last week. He said claims by a former Jackson employee that Jackson molested him at Neverland Ranch were "absolutely ridiculous."
Ted Rowlands, CNN, Los Angeles.
(END VIDEOTAPE)
KAGAN: Health news coming up next. And there's some encouraging news for cancer patients. Patients with some deadly blood diseases and with breast cancer get some new reason to hope. The details are coming up in our "Daily Dose" segment.
(COMMERCIAL BREAK)
KAGAN: In health news, a surprising and encouraging development involving an experimental cancer drug. Doctors were hoping it would relieve the symptoms of a deadly blood disorder. It's known as MDS. But the drug ended up treating the disease itself. In about half the people who took it, the cancer became undetectable. MDS occurs when the bone marrow doesn't make enough healthy blood cells.
A drug used to treat an aggressive form of breast cancer is giving new hope to women battling the disease. Medical Correspondent Elizabeth Cohen has one woman's story of survival in our "Daily Dose" of health news.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): She found the lump herself one morning.
ELIZABETH RUSSO, HERCEPTIN PATIENT: I was petrified.
COHEN: Then her doctor confirmed the worst.
RUSSO: I had only been married for about a year and a half, and I felt like my world was falling down around me. You know, the first question that goes through your head is, am I going to die? And that really was what I was thinking at the time. It was extremely frightening.
COHEN: At age 29, Elizabeth Russo had breast cancer. And there was more.
Doctors told her she had a particular kind that grew quickly and was more likely to come back. This happens to one out of every four patients.
But there was a twist. Because she had this particular type of tumor, she was a candidate for a study on a drug called herceptin. Doctors knew it worked when the cancer had spread to other parts of the body, but they weren't sure if it could help women like Elizabeth, who were at the early stages. At first she would you want sure what to do because the drug in a small number of women had caused heart failure.
RUSSO: There was a little bit of fear there, but obviously, in my situation, the chances absolutely outweighed the frighteningness of the whole situation. I mean, I had to take the risk because there was still the chance that I could die.
COHEN: She took herceptin, along with chemotherapy and radiation, and a year after finding that lump she's cancer-free. In the studies at the National Cancer Institute, when women did not take herceptin 30 percent of them had the cancer come back. When they did take herceptin, only 15 percent had the cancer come back. It cut the reoccurrence rate in half, an extraordinary impact, experts say, meaning this drug is one of the most promising in a new generation of cancer treatments.
Unlike chemotherapy or radiation, which attack healthy and unhealthy tissue, medicines like herceptin are designed to attack only the specific protein that causes problems.
DR. DAVID JOHNSON, VANDERBILT CANCER INSTITUTE: Targeted therapies which we've talked a lot about for the last couple of years are really coming to fruition.
COHEN: Now Elizabeth Russo, once afraid she would die, is alive for the big moments, like her god son's christening last month. The cancer could come back, but now it seems that's less likely.
Elizabeth Cohen, CNN reporting.
(END VIDEOTAPE)
KAGAN: For your "Daily Dose" of health news online, log on to our Web site. You'll find the latest medical stories, special reports and a health library. The address is cnn.com.
We're just about 10 minutes away from the president's energy policy address. He'll be speaking at a Virginia refinery. And we'll go there live as soon as it begins.
(COMMERCIAL BREAK)
KAGAN: This is live pictures from Virginia. President Bush is at this refinery there talking about his energy policy and about alternative fuels. This -- at this plant they make 1.5 million gallons of biodiesel fuel every year from soybean oil. President Bush coming to the microphone. Let's listen in.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all.
(APPLAUSE)
Please be seated. Thanks for coming. Thanks for the warm welcome. And thank you for giving me a chance to get out of Washington. I'm proud to be the first sitting president to visit this part of Virginia.
(APPLAUSE)
They tell me George Washington came before he was president. I thought it was time for another George W. to stop by.
(APPLAUSE)
I appreciate the folks here at Virginia Biodiesel for showing me around. You know, I love the innovative spirit of our entrepreneurs in this country. And the folks here have got incredible vision, and they're willing to take risks to innovate.
What I think is interesting is they have combined farming and modern science. And by doing so, you're using one of the world's oldest industries to power some of the world's newest technology. And after all, they've taken soybeans and converted them to fuel and put them into brand new caterpillar engines.
(APPLAUSE)
Biodiesel is one of our nation's most promising alternative fuel sources. And by developing biodiesel, you're making this country less dependent on foreign sources of oil.
(APPLAUSE)
As my friend George Allen said, that's the reason I've come. I want to talk about the need for this country to have a comprehensive energy strategy. I appreciate George's leadership and I appreciate his friendship. You've got a fine United States senator in Senator George Allen.
(APPLAUSE)
And today I took a helicopter down from -- from the White House with our secretary of Agriculture, Mike Johanns.
Mike, thank you for coming.
Mike is from the state of Nebraska.
(APPLAUSE)
For those of you involved with agriculture, he knows something about it, you'll be happy to hear. He was raised on a dairy farm. He's a good man, and I really appreciate he and his lovely wife. He was the governor of Nebraska when I called him, and he quit and came to Washington.
And I want to thank you for serving our country, Michael. Thank you very much.
(APPLAUSE)
I want to thank the members of the congressional delegation who have joined us, Congressman Bobby Scott, Congresswoman Joanne Davis, Congressman Eric Cantor, Randy Forbes, Congresswoman Thelma Drake. She brought her husband, Ted, with her. Thank you all for serving. I enjoy working with you all.
I want to thank a member of the State House who is here.
KAGAN: Let's go ahead and jump in here while he's doing the formalities and saying hello. President Bush in Virginia today talking about alternative fuel energy for that, and a little bit of other news of the day.
Let's bring in our Dana Bash, who stayed behind at the White House
Hi, Dana.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Daryn.
Well, what you just heard from the president is an additional push on his energy reform agenda. This is something, this is a piece of legislation that passed the House of Representatives. He wants it to get through the Senate. This is something he's been pushing since he started here in Washington more than five -- or about five years ago.
And what he's doing, as you just heard the president say, is talking about a plant that he's touring there where they change -- move soybeans and make that into diesel fuel. What the president always says is that he wants the U.S. to be less dependent on oil, specifically foreign oil, and that can be done through a long-term energy reform bill. But you're likely to hear the president say today what we've heard several times over the past month or two, which is that this is not going to do anything for today's high gas prices -- Daryn.
KAGAN: Another controversy brewing with "Newsweek" magazine in a report that U.S. military officials flushed a Quran down a toilet in Guantanamo Bay. "Newsweek" now going back on that story, and the White House getting involved in this controversy, Dana.
BASH: Daryn, it's really been interesting to watch the White House reaction to this, this morning. As you said, "Newsweek" says that they're sorry. The White House essentially is saying today, that's not good enough.
In a conversation with Scott McClellan, the White House spokesman, he said, quote, "It's puzzling that while 'Newsweek' now acknowledges they got it wrong, they refuse to retract the story." He then went on to say there was a certain journalistic standard that should be met but that was not met in this case.
So the White House is essentially going after journalistic ethics and saying, additionally, in the phone conversation Scott McClelland said that this was, by "Newsweek's" admission, a single anonymous source, that they now can't substantiate in terms of the allegation that was made and said several times in the conversation, that it was puzzling that the magazine is not retracting the story.
Because, as you see on the screen now, he reminded me, as the White House is reminding others, that this apparently sparked riots that apparently cost lives in Afghanistan and other parts of the Middle East.
So what we are seeing this morning is the next move in the White House damage control operation. We first saw this last week when the story came out, when the riots started, by senior officials saying that they do not believe this, that they don't believe this is something that is in agreement with U.S. values. Now you're seeing them essentially go after "Newsweek," push harder on the journalism here.
But you also hear from officials that they believe that the, quote, "genie is out of the bottle." One other thing I should point out, Daryn, is that, talking to Democrats on Capitol Hill, they say regardless of whether or not this particular issue may or may not be true, they point out that there are other allegations about what goes on at Guantanamo that need to be investigated, investigated independently. And that this was not a fire that took a lot to really stoke in terms of what the U.S. image is abroad and the sad image abroad -- Daryn.
KAGAN: Dana, another hot topic out there, North Korea, South Korea saying there's a possibility that they believe they can get the North Koreans back at the negotiating table. Any word on that from the White House?
BASH: Well, certainly, that would be music to the White House ears, Daryn. You know, they have been trying to get these six-party talks, these multilateral talks back on track. They have been stalled for about a year. And we heard some new words from the national security adviser, Stephen Hadley, on CNN yesterday, warning North Korea that they should not test any nuclear weapon that they might have, no nuclear test, that that would be certainly seen as something that would require further action at the United Nations, maybe some sanctions by the U.S. and other members of the talks.
So anything that the South Koreans can do would certainly be very -- a very welcome move here at the White House -- Daryn.
KAGAN: All right. Dana Bash at the White House. Let's go back to Virginia and listen in to President Bush.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... dignified retirement. If you're getting your check, you don't have anything to worry about on this issue. You need to worry about your children and grandchildren when it comes to Social Security and make sure we have a retirement system that works for a future generation of Americans. Congress must work with me to strengthen and save Social Security for a generation to come.
And to keep creating jobs and to keep this economy growing, it is important for our country to understand we need an affordable, reliable supply of energy. And that starts with pursuing policies to make prices reasonable at the pump.
Today's gasoline prices and diesel prices are making it harder for our families to meet their budgets. These prices are making it more expensive for farmers to produce their crop. It's more difficult for businesses to create jobs. Americans are concerned about high prices at the pump, and they're really concerned as they start making their travel plans. And I understand that.
I wish I could just wave a magic wand and lower the price at the pump. I would do that. That's not how it works. You see, the high prices we face today have been decades in the making.
Four years ago I laid out a comprehensive energy strategy to address our energy challenges. If Congress hadn't passed energy legislation. For the sake of the American consumers, it is time to confront our problems now and not pass them on to future Congresses and future generations.
The increase in the price of crude oil is largely responsible for the higher gas prices and diesel prices that you're paying at the pump. For many years, most of the crude oil refined into gasoline in America came from home, came from domestic oil fields.
In 1985, 75 percent of the crude oil used in U.S. refineries came from American sources. Only about 25 percent came from abroad. The past few decades we've seen a dramatic change in our energy equation. American gasoline consumption has increased by about a third, while our crude production has dropped and oil imports have risen dramatically.
KAGAN: We've been listening in to President Bush. He is at a biodiesel fuel plant in Virginia, talking about his energy policy. One part of that policy is looking at developing alternative sources of energy. At this particular plant they take soybean oil and turn it into fuel.
Much more on the president's energy policy, other news, straight ahead, as well.
(COMMERCIAL BREAK)
KAGAN: Can you believe it? It's time to talk hurricanes again already. Jacqui Jeras has that on her brain today for a good reason.
Hi, Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Hi, Daryn.
Big announcement today coming in from NOAA. That's at 12:30 Eastern. They're going to be releasing their forecast for the upcoming season. Really kind of a sore subject for many of you, especially those folks that live in parts of Florida that got hit so hard last year.
Of course, four major hurricanes last year made landfall on the U.S. coastline. And some of these people still have not recovered. There's still a lot of damage out there. I was just on the Emerald Coast here, in the panhandle of Florida two weeks ago and still saw a lot of blue tarps, people having problems with some of their insurance claims.
So it's hard to think about another hurricane season. But we need to do it. It's necessary. We're just two weeks away from the official beginning of that hurricane season, June 1 through November 30. And this week is Hurricane Preparedness Week. And now is the time that you want to start thinking about what you're going to do when that big storm does arrive.
Everything you ever wanted to know about hurricanes and more about what happened last season, about what you can do to prepare yourself and about the upcoming forecast, all of this is on CNN.com/hurricanes. So you can logon to this throughout the day today.
And again, 12:30 Eastern Time during Wolf Blitzer's show we are going to bring you all of that information live. And I'll also come on and talk about that a little bit more. But we think NOAA is probably going to say above average, just like Dr. William Gray from Colorado State University.
(WEATHER REPORT)
KAGAN: Thank you. We look forward to that hurricane information.
Meanwhile information from Hollywood. Jane Fonda, Jennifer Lopez drawing audiences to their new comedy. It's called "Monster in Law." The movie was tops at the box office over the weekend with $24 million.
It's officially the start of "Star Wars" week. The last film hits theaters Thursday. Some have already seen the finished product. Many of the stars of "Star Wars" were on hand as Episode III was shown at the Cannes Film Festival yesterday.
As CNN's Meara Erdozain reports, you don't necessarily have to be in a theater to experience the force.
(BEGIN VIDEOTAPE)
MEARA ERDOZAIN, CNN CORRESPONDENT (voice-over): At first glance this looks like an average guy at work. Take a closer look, though, and you'll notice something odd: Princess Leia, Darth Vader, R2D2. He's not your average guy at all. He's Jim Knight, or Jim "Jedi" Knight to his friends.
And never mind his office, Jim's home really gives the game away. It's like a museum, packed to the brim with "Star Wars" memorabilia. Age 30, he's been collecting since he was 4.
JIM KNIGHT, COLLECTOR OF "STAR WARS" MEMORABILIA: This particular figure here is my original figure from when I was a child. Obviously, Boba Fett's quite a strange character in the "Star Wars" universe, because he was only briefly in "Empire Strikes Back."
As a child it would have roughly cost about, probably about $2, now, you're looking at probably about $400 or $500.
ERDOZAIN: "Star Wars" merchandising sales have generated around $9 billion, with many individual items costing thousands.
The Attat (ph) is Jim's most expensive item. It set him back around $2,000.
KNIGHT: It's hard to explain what the fascination with it is, really, all the collectibles, everything they're releasing now, the replicas are absolutely amazing. And they just keep you entwined in the universe.
ROBOTIC VOICE: Your journey to the dark side.
ERDOZAIN: Modern technology means toys can do far more than they could even a decade ago. Some items are almost as good as the real thing. High-tech toys, plus a flow of new movies over the years has helped keep the "Star Wars" brand fresh. Experts say it explains why the merchandise continues to sell.
UNIDENTIFIED MALE: The main characters have been iconic, like Darth Vader, C3PO, R2D2. Those characters are (ph) -- they've always introduced new characters that fit within that fantastical world. And, therefore, give a new generation of fans something of their own to grab hold of.
JAMES EARL JONES, VOICE OF DARTH VADER: Asteroids do not concern me, Admiral. I want that ship.
ERDOZAIN: Serious collectors want to collect everything. Jim spent around $20,000. And even then it's hard to know when to stop.
(on camera) This is the most sought after collectible item. It's a galactic passport that enables me to see every single "Star Wars" movie ever made in one sitting here in Leicester Square in England.
The problem is they're hard to come by, and they're expensive. This one cost almost $800, but luckily, it will still be worth something once the movie is over, because collectors will always be looking for one of these.
(voice-over) Meara Erdozain, CNN, London.
(END VIDEOTAPE)
KAGAN: Well, a different kind of transportation ahead. When airfares rise, trying to get the best travel deals can be tough. We have tips on how to lessen the cost. Also, find deals to exotic locations, ahead in our getaway segment.
(COMMERCIAL BREAK)
KAGAN: We will get to getaways in just a minute. First, we want to tell you about developing news out of Kuwait. Political news, parliament there on Monday approved women's political rights. And that could clear the way for the first time ever for women to run for office in that country.
However, there is a "however" here. Some fundamentalist Muslims included an article in the bill that would require women to follow Islamic law. And it's not clear how much that is going to restrict women's political rights in Kuwait. An ongoing battle in that country. More on that ahead, perhaps on wolf Blitzer at the top of the hour
Right now, let's turn to travel news. And in the travel business, there is high season and there's low season and in between there's something they call shoulder season. It's a travel time that offers good weather, smaller crowds and best of all, lower prices. Hello.
Hillary Geronemus is associate editor at "Travel & Leisure" magazine. And she is in New York this morning, looking at shoulders for us. No crying on shoulders about this news, Hillary?
HILLARY GERONEMUS, ASSOCIATE EDITOR, "TRAVEL & LEISURE": No, not at all. It's a great time to travel.
KAGAN: So let's look at different times and different places. First, May, where we are now, Costa Rica, a great time to go there.
GERONEMUS: Yes, Costa Rica is great in May, because the high season just ended in April. And technically it's the beginning of the rainy season. But the heavy rains don't really come until later on in the season.
And a lot of hotels offer great deals, like the Four Seasons, Peninsula Papagaia (ph). Some of the newer properties, it's eco luxury all the way. And they drop the rates by about $100, from $475 to $375.
KAGAN: Still a little steep, but you know, every little bit helps.
Looking forward down the year, in June -- this is the place I love -- Mexico's Baja Peninsula, Cabo (ph).
GERONEMUS: Cabo (ph) is the hot destination now among honeymooners, destination weddings and celebrities. And June's a great time. The weather is a nice, warm, 80 degrees. And a lot of the luxury hotels do drop their rates a little bit. Some don't even drop the rates, which proves it's a great time of year. But La Santana (ph) drops it about $150, from $600 to $450.
KAGAN: and I want to keep it in the U.S. Look to September to Hawaii.
GERONEMUS: Yes, Hawaii is great in September. Now Hawaii is kind of the exception to the rule, where there is no high or low season. But in September the families tend to go away. The kids are back in school. The parents are back at work.
A lot of the hotels offer a little incentive to people coming back, like the Fairmount Kailani (ph). This is a Travel Major World's Best Property, and they're offering a fifth night free promotion, which saves you about $385.
KAGAN: And let's move it east to Nantucket in October. Starting to get a little bit chillier there.
GERONEMUS: A little chili, but October is a great time to visit Nantucket because the crowds are gone. You have the island all to yourself, which makes reservations easy to get at restaurants and hotels with great rates, as well. The Veranda House, which is a beautiful gingerbread trimmed historic inn right on the bay, is offering a great deal. They lower the rates about $50.
KAGAN: All great ideas. Putting vacation on our brain. Hillary, thank you.
GERONEMUS: Thank you.
KAGAN: Let's go ahead and find out what's happening at the top of the hour, "NEWS FROM CNN." Wolf Blitzer is in New York City today.
Hi, Wolf.
WOLF BLITZER, HOST, "NEWS FROM CNN": Hi, Daryn. Thanks very much. A busy hour ahead for all of us here on "NEWS FROM CNN."
Tracking the fallout, "Newsweek" magazine apologizing for an article that sparked a deadly wave of violence in Afghanistan. We're live on the damage control, what happens next.
Also, on the heels of one of the most active hurricane seasons in years, what are forecasters now predicting will happen this year? We'll find out in a live news conference coming up in the next hour. First official word on the storms.
Watch for all those stories. Much more coming up on "NEWS FROM CNN." Daryn, in the meantime, back to you
KAGAN: All right. Wolf, you enjoy New York City today.
BLITZER: Thanks.
KAGAN: Check of business news is coming up next after this break.
(COMMERCIAL BREAK)
KAGAN: Plenty of smiles on Wall Street today for this Monday morning. We check in with Kathleen Hays at the New York Stock Exchange.
Hi, Kathleen.
(STOCK REPORT)
KAGAN: Kathleen, thank you.
Graduation just days away from a lot of college seniors. Many are now worrying about an age-old rite of passage. They've got to find a job. Veronica de la Cruz at CNN.com looks at what they should expect.
(BEGIN VIDEOTAPE)
VERONICA DE LA CRUZ, CNN CORRESPONDENT: As the summer draws near, so does graduation for college seniors. So before you don that cap and gown, get ready for the real world with five must-haves at CNN.com/us.
Good news for college grads looking for their first job. A recent survey by CareerBuilder found that more than 60 percent of managers say they plan to hire recent grads, and more than 30 percent say they plan to increase entry level salaries.
The survey also reveals the top five things grads can do to make the most of their search. Twenty-eight percent of hiring managers have said relevant experience is the most important factor in their hiring decision. Professionalism during the interview is also key. So invest in a professional business suit and arrive well dressed and on time.
If you're looking for a place to start your search, try CareerBuilder's job search engine on CNN.com.
After you've landed that first job, don't lose it. Logon for a list of top mistakes college grads make in their first three months on the job. Best of luck in your search.
From the dotcom news desk, I'm Veronica de la Cruz.
(END VIDEOTAPE)
KAGAN: And that's going to do it for me. I'm Daryn Kagan. I'll be right back here on Tuesday morning. We've tracked Wolf Blitzer down. He's in New York City today at the Big Apple.
Hey, Wolf.
BLITZER: It's a lovely day in New York, a lovely day to be in New York. Thanks very much, Daryn.
We're watching lots of news unfold this hour on "NEWS FROM CNN."
Magazine fallout: "Newsweek" magazine backing off a report that sparked deadly violence in much of the Muslim world. The White House wants more, more reaction from "Newsweek." We're covering this story from all sides of the story. Reaction in Washington. We'll also get into the issue of journalistic ethics.
And terror in Iraq: Who's behind the insurgency, the daily slaughter of innocent lives? Joining us from Baghdad this hour U.S. Army Colonel Ben Hodges, operations officer for the multinational forces in Iraq.
And later, big storms rising, lots of them this hurricane season. The national weather forecasters offering their predictions. We're standing by for their news conference, first official word on what we can expect during this coming hurricane season that opens up in the weeks and months to come.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
