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Trial of 24 Al Qaeda Suspects Resumes in Spain Today; Senate Investigators Issuing Scathing Report on Iraq's Oil-For-Food Program

Aired May 16, 2005 - 10:30   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: We are right at the half hour.
Good morning once again.

I'm Daryn Kagan.

Let's take a look at what's happening now in the news.

President Bush is en route to Virginia right now. He is going to a biodiesel refinery. He has publicly supported such alternative fuels as a way to ease spiraling gas prices. We'll have live coverage of his speech on energy policy. That's about an hour from now, at 11:35 Eastern here on CNN.

The White House tells CNN that it's pushing "Newsweek" to retract a report that ignited Muslim outrage and violence in Afghanistan and Pakistan. The magazine had reported that interrogators at Guantanamo Bay had desecrated the Koran in order to rattle terror suspects. It now says its government source can no longer vouch for such a claim.

Michael Jackson's former attorney took to the witness stand on Friday to defend the pop star against child molestation charges. Mark Geragos told jurors that he believes that Jackson's accusers were trying to shake him down. Geragos is expected to resume testimony later this week.

At the top of the hour, the U.S. Supreme Court handed down a ruling that is likely to please fans of fine wine. The high court ruled that states cannot forbid wineries from shipping directly to customers. Many wine collectors said such state laws unfairly prevented purchases from vineyards that did not supply nearby retailers.

Checking news about your security now, the trial of 24 al Qaeda suspects resumed in Spain today. One defendant is a correspondent for Al Jazeera and took the stand.

Our Madrid bureau chief, Al Goodman, joins us now via video phone with an update -- hello, Al.

AL GOODMAN, CNN CORRESPONDENT: Hello, Daryn.

Well, Tayseer Allouni is undoubtedly the best known of the 24 al Qaeda suspects on trial here in Madrid. Testimony is due to resume at this hour for the afternoon session. Now, he was the Al Jazeera correspondent who had the last known interview with Osama bin Laden in late 2001, shortly after the September 11 attacks. The prosecutor says that on the side, he was working for al Qaeda. He's facing nine years in jail for being an al Qaeda member, if convicted, and preparing funds for al Qaeda.

He denies all this. In testimony earlier this day, he denied having what prosecutors say was a close and intense relationship with a suspected al Qaeda leader here in Spain, who is also on trial at the courthouse behind me -- Daryn.

KAGAN: All right, Al Goodman live from Spain.

Thank you for the latest on that.

We focus now here in the U.S.

Jury selection beginning in Tampa, Florida today in the case of an ex-college professor accused of helping a Palestinian terrorist group. The former University of South Florida professor and three other men are accused of financing suicide bomb attacks in Israel. Their lawyers have asked for a change of venue, saying there's been too much pre-trial publicity.

Stay tuned to CNN day and night for the most reliable news about your security.

Senate investigators are issuing a scathing report on Iraq's Oil For Food Program. And in this report, it claims that top Russian officials pocketed millions of dollars in kickbacks from the program that was designed to feed and care for civilians living under the oppression of Saddam Hussein.

For details on that, let's go to our senior United Nations correspondent, Richard Roth.

(BEGIN VIDEO TAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): Vladimir Zhirinovsky may be best known for his ultra nationalist views, his bawdy behavior during three failed runs for president of Russia or his antics inside the Russian parliament. But according to U.S. congressional investigators, Russia's deputy parliament speaker was also a recipient of lucrative vouchers from Saddam Hussein's regime to buy Iraqi oil under the U.N.'s Oil For Food Program.

A report released today alleges that Zhirinovsky and his political party were allocated 76 million barrels of Iraqi crude between 1997 and 2002. The oil was allegedly a reward for supporting Saddam's regime and calling for an end to economic sanctions against it, according to former top Iraqi officials interviewed by Senate investigators.

Iraqi oil ministry records cited in the report allege Zhirinovsky even hired an American company, Houston-based Bay Oil, as a middle-man to take possession of some of his oil and sell it on the open market. Bay Oil and its CEO are under federal indictment for paying Saddam illegally surcharges to get Iraqi oil. The alleged profits for Zhirinovsky on his deals? About $9 million.

But according to the Senate report, Zhirinovsky was not the only Russian pension rewarded by Iraq. The report says President Vladimir Putin's United Russia Party got oil allocations, as did top Putin adviser, Alexander Voloshin and the Russian foreign ministry. In all, some 90 million barrels to top Russian officials, and $3 billion profit, according to the Senate report.

Former Iraqi officials told investigators they were buying influence and providing compensation for support, especially at the U.N. Security Council.

(END VIDEO TAPE)

ROTH: Russian government officials are not really having any comment. The Russian mission to the U.N. spokesman saying it's an internal U.S. affair. They're waiting to see the outcome, Daryn, of Paul Volcker's independent inquiry. The next stage in his report, due in a few months, will be looking at other country involvement. And, finally, Vladimir Zhirinovsky, in an interview on Moscow Radio, said I didn't get any money from Iraq, I didn't sign any contracts and I didn't see any oil -- Daryn.

KAGAN: Well, let's look forward to that Volcker report.

What could be the ramifications from that if that's going to have more respect within the U.N.?

ROTH: These reports and these committee investigations are kind of all tripping over each other. What will be interesting is that tomorrow on Capitol Hill, George Galloway, a British parliamentarian who opposed the war and opposed U.N. sanctions on Iraq, he's been called to testify. He's been invited to testify. He was accused by the Senate committee last week of accepting millions of barrels of oil rights. That could be a pretty contentious hearing. Galloway says he's going there with both guns blazing.

KAGAN: All right, we'll be -- how about we dip in and listen to that tomorrow morning?

Richard Roth, thank you.

Right now we're going to take a look at other stories making news coast to coast.

First, the Oakland As. A fan there now facing criminal charges after throwing a cup of beer at Jason Giambi. The New York Yankees' slugger was walking back to the dugout when he was slammed with the beer.

More than 100 people were denied holy communion at St. Paul Cathedral in Minnesota. The group was wearing rainbow sashes as a show of support for gay Catholics. The archbishop barred the group from communion because he said the sashes have become a protest against church teachings.

And it's the last day of campaigning for the Los Angeles mayoral candidates. Antonio Villaraigosa led incumbent James Hahn by double digits in a recent poll. But an expected lower voter turnout tomorrow makes this race really tough to call.

Still to come on CNN LIVE TODAY, so you want to be a radio star? We're going to tell us about an exciting new idea that might help you become the next shock jock of the airwaves, or something even better than that.

Plus, bad news for summer travelers. Airline fares are going up again. We'll have that story and a check of the financial markets coming up next.

(COMMERCIAL BREAK)

KAGAN: Well, what is going on on Wall Street with these positive numbers?

Susan Lisovicz -- oh, Kathleen Hays is here.

KATHLEEN HAYS, CNN CORRESPONDENT: Hi there, Daryn.

KAGAN: I heard Susan...

HAYS: Surprise!

KAGAN: ... Kathleen, Kathleen. You're all welcome here.

Good to see you.

HAYS: Well, and it's always lovely to see you, too, Daryn Kagan.

KAGAN: Sure.

HAYS: Absolutely.

And as you may recall, watching the markets last week kind of challenging. Ended the week pretty much down on the blue chips. This morning holding onto some moderate gains. A plus here, crude oil prices lower, back below $48.

You can see the Dow Industrials are up 45 points. The Nasdaq Composite is up very, very fractionally.

In the beleaguered airline industry, an important story. Merger talks between US Airways and America West are heating up. Reports say the two are in advanced negotiations with potential equity investors, the people with the money. The carriers need to raise about $500 million in financing before securing the deal.

Here's an interesting twist, because Europe's Airbus and the United States' Boeing are major competitors. Well, as part of this deal, Airbus might provide the bulk of the financing in return for orders for about 20 of the company's new jetliners. Now, if this merger does take place, the new US Airways would be the nation's sixth largest carrier, pushing aside Southwest Airlines.

Right in time for the summer travel season, airlines are reportedly hiking fares for the seventh time in three months. It started last week, when American Airlines raised prices by $2 to $6 each way to compensate, of course, for these soaring fuel costs. Then Delta raised its fares by $10 to $20 in response. American came back, matched the increase. So did Continental, Northwest, United, US Airways and America West. So it's going to cost us a little bit more to fly.

That's the latest from Wall Street -- Daryn, back to you.

KAGAN: Excellent.

Great news there.

Thank you, Kathleen.

We will see you later in the morning.

College seniors may be looking forward to the pomp and circumstance in the ceremony of the graduation march. But are they on the right path for their first career job?

Here now, CNN's Veronica Delacruz with some advice from cnn.com.

(BEGIN VIDEO TAPE)

VERONICA DELACRUZ, 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. The five must-haves at cnn.com/us.

Good news for college grads looking for their first job. A recent survey by Career Builder 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 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 Career Builders job search engine on cnn.com.

After you've landed that first job, don't lose it. Log on 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 Dot-Com news desk, I'm Veronica Delacruz.

(END VIDEO TAPE)

KAGAN: Thank you, Veronica -- Jacqui Jeras, what was your first job out of college?

JACQUI JERAS, CNN METEOROLOGIST: I was a news reporter at KCAU- TV in Sioux City, Iowa.

KAGAN: Sioux City, Iowa.

Go Sioux City. All right.

What do we have in weather?

JERAS: Hey, we are talking about hurricane season, right around the corner. Today is, or yesterday, actually, was the start of Hurricane Preparedness Week. That was May 15. It goes all the way through the 21st. And you want to start thinking now about what you're going to do when that hurricane comes, not if, but when. It's going to be a good possibility once again this year, Dr. Gray predicting an above average season at 12:30 Eastern time today. We're going to bring it to you live, NOAH's prediction for the 2005 season, which begins on June 1.

You want to have a plan, what you're going to do with your family. You want to have your disaster supply kit and you want to know what you're going to do to secure your home. Remember last week, Daryn? We had the survey results of what people do to prepare themselves for hurricanes.

KAGAN: Yes.

JERAS: Some of them were talking about masking tapes on your windows. So, not a good plan. Go to cnn.com/weather and you can find out some more information about hurricane preparedness.

Last year, of course, a very, very active season. We had 15 named storms, nine of which became hurricanes, six becoming major hurricanes. That's twice as many as normal for major hurricanes in the Atlantic Basin.

The Pacific, the eastern Pacific hurricane season began yesterday. All is looking fairly quiet in the development areas. We've got a couple of storm systems to talk about here.

(WEATHER REPORT)

KAGAN: Thank you, Jacqui.

JERAS: OK.

KAGAN: Coming up, the wave of the digital future.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: KCRW is handpicked music and NPR news streaming and now podcasting. Imagine that.

(END VIDEO CLIP)

KAGAN: It's not just radio or satellite radio anymore. We're going to tell you about a new tech trend called podcasting. That's coming up next.

(COMMERCIAL BREAK)

KAGAN: Our goal today -- to keep you au current, very current. Forget about broadcasting, not even blogging. Blogging is like so last Tuesday, isn't it?

DANIEL SIEBERG, CNN CORRESPONDENT: It kind of is, I guess.

KAGAN: Yes.

We're talking podcasting.

What's the difference?

Daniel Sieberg here to explain to us.

SIEBERG: Yes.

And, Daryn, a lot of people might have just caught up with blogging...

KAGAN: Yes, forget it.

SIEBERG: And now they're saying gosh, she's throwing podcasting at me now. Like slow down here.

KAGAN: There is no slowing down (INAUDIBLE).

SIEBERG: No slowing down, not on the Internet.

Podcasting is hard to describe if you don't know what blogging is. But it really is like an audio blog. It's like somebody having their own radio station online. And to explain it a little bit better, if you can remember the movie "Sideways," and the guys who were kind of wine geeks, well, we hung around with some of those guys in California to get a better idea of what podcasting is all about.

(BEGIN VIDEO TAPE)

MICHAEL GEOGHEGAN, EXECUTIVE PRODUCER, GRAPE RADIO: Welcome to Grape Radio, where enthusiasm for wine gets personal.

SIEBERG (voice-over): Grape Radio has mikes and a mixing board, all the tell-tale signs of a radio station, except for one minor detail -- Grape Radio is not actually on the radio.

GEOGHEGAN: The magic of the fact that once somebody puts a show up, it's automatically downloaded to your computer, I just really found compelling. SIEBERG: Meet Brian (ph)...

BRIAN: This is sweet. This is very nice.

SIEBERG: ... Lee (ph) and Jay (ph) -- wine enthusiasts turned talk show hosts, not just in the studio, but also on the road.

RON TAMEZ, HAMILTON OAKS VINEYARD: And this is our Melange du Sud that I was talking about.

SIEBERG: The show is recorded, then uploaded to the Internet and becomes a podcast -- an audio file playable on any I-Pod or portable music device.

UNIDENTIFIED MALE: It's just like a song, it's no different.

SIEBERG: They say they had 50 listeners for their first podcast in January. Five weeks later, the hosts say their 12th show was downloaded 3,000 times. Web sites like Podcast Alley list scores of different shows, some produced with nothing more than a computer and a microphone. Favorite DVDs, geek talk about gadgets, college sports, even podcasts about podcasting. And a racy talk show from a couple named Dawn and Drew in Wisconsin. It's ranked number one. Click on the number one you want, in this case, Grape Radio, and you're halfway there.

UNIDENTIFIED MALE: All you're looking for is this link right up here.

SIEBERG: Then you just have to copy and paste your link into a program like I-Podder and your podcast is ready to roll.

(on camera): You may have heard of podcasting through the grapevine. What started as an experiment last summer has now grown to more than 3,000 podcasts online. The question is will podcasting give broadcasting a run for its money?

HARRY SHEARER, RADIO SHOW HOST: KCRW is handpicked music and NPR News streaming and now podcasting. Imagine that.

SIEBERG (voice-over): Harry Shearer, a voice on "The Simpsons" and former cast member of "Saturday Night Live," has been on the radio since he was 7 years old. His weekly broadcast is now also a podcast.

SHEARER: There is a certain sadness to me that the broadcasting model we've known is dissolving. I think radio stations have to, and broadcasters generally, have to chase the audience. You know, the audience is moving to different technologies that are more convenient.

SIEBERG: Shearer says podcasting lets the listener pick the time and place, a necessity in today's busy society. But the quality of podcasts, well, Shearer says the jury is still out.

SHEARER: What podcasting reminds me of is blogging five years ago, which started out as a very personal form of communication via the Internet and has now become a medium for its practitioners to declare their own self-importance.

Elvis from Holland, hello.

SIEBERG: Back at Grape Radio, the guys say they just want to declare their passion for wine and have fun hobbying as talk show hosts.

UNIDENTIFIED MALE: It's a blast. It is an absolute blast.

SIEBERG: Perhaps it's the 21st century equivalent of ham radio, talking to the void just to see if anyone can hear you.

(END VIDEO TAPE)

SIEBERG: All right, so is podcasting going to take over the radio and broadcasting tomorrow, next month, next year? No. OK, but as a sign that things are starting to get noticed in the podcasting world, Infinity Broadcasting today is launching the first all podcast radio station. It's actually at KY -- or KYOUR radio online. You can see it right there.

And we'll just pause for a second and you can hear some of one of the podcasts.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: You know, the answer for her is obviously they are. Otherwise she wouldn't get that.

(END VIDEO CLIP)

SIEBERG: It probably sounds a lot like any other radio station, right? Well, that's sort of the whole idea. It's KYCY in San Francisco. It just started today. They've had more than 400 podcasts submitted to them by virtually anybody from across the country, and, in fact, around the world. So this is how they're trying to get podcasting a little bit more out into the mainstream.

But again, you know, it's got a little ways to go. We're talking about thousands of listeners here, not hundreds of thousands or millions.

KAGAN: Millions, exactly.

SIEBERG: Yes.

KAGAN: Now, if you're interested in finding a podcast that might interest you, what's the best way to do that?

SIEBERG: Yes, the best place to go is a Web site called podcastalley.com. They've got a whole list of them there. Again, a real range of different podcasts. It requires a little bit of technical knowledge to actually get it onto your I-Pod, or any other music player, we should say. But once you're there, they kind of walk you through it. And, you know, it's a burgeoning technology. It's not something that's really mainstream yet. But, you know, we've got to be cutting edge here, Daryn, so.

KAGAN: Did you sample any of the grape with the Grape Radio guys?

SIEBERG: Did we sample grapes?

KAGAN: Yes.

SIEBERG: Yes, we had some grapes.

KAGAN: Wine?

SIEBERG: I mean, you know, a gentleman...

KAGAN: You're over 21. You can say.

SIEBERG: ... never tells, Daryn.

KAGAN: OK. All right, well, that's not fair.

SIEBERG: But, you know, research is important with any story.

KAGAN: So on the geek factor, I'm just wondering, have you seen the new "Star Wars?"

SIEBERG: Yes, of course I've seen the new "Star Wars." I would not be a true technology correspondent if I had not seen it.

KAGAN: And a quick review?

SIEBERG: I would say much better than the previous two.

KAGAN: All right, very good.

SIEBERG: Yes, yes.

KAGAN: Well, we're going to talk about it. If you think Daniel is a "Star Wars" fan or if you're a "Star Wars" fan, we're going to really show you a man who really defines it. It could be the biggest collection of "Star Wars" merchandise in the galaxy.

And if you're looking for a good travel destination here on Earth, we're going to check out some great deals on some seasonal getaways as the second hour of CNN LIVE TODAY begins after a quick break.

(COMMERCIAL BREAK)

KAGAN: 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.

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 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We are right at the half hour.
Good morning once again.

I'm Daryn Kagan.

Let's take a look at what's happening now in the news.

President Bush is en route to Virginia right now. He is going to a biodiesel refinery. He has publicly supported such alternative fuels as a way to ease spiraling gas prices. We'll have live coverage of his speech on energy policy. That's about an hour from now, at 11:35 Eastern here on CNN.

The White House tells CNN that it's pushing "Newsweek" to retract a report that ignited Muslim outrage and violence in Afghanistan and Pakistan. The magazine had reported that interrogators at Guantanamo Bay had desecrated the Koran in order to rattle terror suspects. It now says its government source can no longer vouch for such a claim.

Michael Jackson's former attorney took to the witness stand on Friday to defend the pop star against child molestation charges. Mark Geragos told jurors that he believes that Jackson's accusers were trying to shake him down. Geragos is expected to resume testimony later this week.

At the top of the hour, the U.S. Supreme Court handed down a ruling that is likely to please fans of fine wine. The high court ruled that states cannot forbid wineries from shipping directly to customers. Many wine collectors said such state laws unfairly prevented purchases from vineyards that did not supply nearby retailers.

Checking news about your security now, the trial of 24 al Qaeda suspects resumed in Spain today. One defendant is a correspondent for Al Jazeera and took the stand.

Our Madrid bureau chief, Al Goodman, joins us now via video phone with an update -- hello, Al.

AL GOODMAN, CNN CORRESPONDENT: Hello, Daryn.

Well, Tayseer Allouni is undoubtedly the best known of the 24 al Qaeda suspects on trial here in Madrid. Testimony is due to resume at this hour for the afternoon session. Now, he was the Al Jazeera correspondent who had the last known interview with Osama bin Laden in late 2001, shortly after the September 11 attacks. The prosecutor says that on the side, he was working for al Qaeda. He's facing nine years in jail for being an al Qaeda member, if convicted, and preparing funds for al Qaeda.

He denies all this. In testimony earlier this day, he denied having what prosecutors say was a close and intense relationship with a suspected al Qaeda leader here in Spain, who is also on trial at the courthouse behind me -- Daryn.

KAGAN: All right, Al Goodman live from Spain.

Thank you for the latest on that.

We focus now here in the U.S.

Jury selection beginning in Tampa, Florida today in the case of an ex-college professor accused of helping a Palestinian terrorist group. The former University of South Florida professor and three other men are accused of financing suicide bomb attacks in Israel. Their lawyers have asked for a change of venue, saying there's been too much pre-trial publicity.

Stay tuned to CNN day and night for the most reliable news about your security.

Senate investigators are issuing a scathing report on Iraq's Oil For Food Program. And in this report, it claims that top Russian officials pocketed millions of dollars in kickbacks from the program that was designed to feed and care for civilians living under the oppression of Saddam Hussein.

For details on that, let's go to our senior United Nations correspondent, Richard Roth.

(BEGIN VIDEO TAPE)

RICHARD ROTH, CNN CORRESPONDENT (voice-over): Vladimir Zhirinovsky may be best known for his ultra nationalist views, his bawdy behavior during three failed runs for president of Russia or his antics inside the Russian parliament. But according to U.S. congressional investigators, Russia's deputy parliament speaker was also a recipient of lucrative vouchers from Saddam Hussein's regime to buy Iraqi oil under the U.N.'s Oil For Food Program.

A report released today alleges that Zhirinovsky and his political party were allocated 76 million barrels of Iraqi crude between 1997 and 2002. The oil was allegedly a reward for supporting Saddam's regime and calling for an end to economic sanctions against it, according to former top Iraqi officials interviewed by Senate investigators.

Iraqi oil ministry records cited in the report allege Zhirinovsky even hired an American company, Houston-based Bay Oil, as a middle-man to take possession of some of his oil and sell it on the open market. Bay Oil and its CEO are under federal indictment for paying Saddam illegally surcharges to get Iraqi oil. The alleged profits for Zhirinovsky on his deals? About $9 million.

But according to the Senate report, Zhirinovsky was not the only Russian pension rewarded by Iraq. The report says President Vladimir Putin's United Russia Party got oil allocations, as did top Putin adviser, Alexander Voloshin and the Russian foreign ministry. In all, some 90 million barrels to top Russian officials, and $3 billion profit, according to the Senate report.

Former Iraqi officials told investigators they were buying influence and providing compensation for support, especially at the U.N. Security Council.

(END VIDEO TAPE)

ROTH: Russian government officials are not really having any comment. The Russian mission to the U.N. spokesman saying it's an internal U.S. affair. They're waiting to see the outcome, Daryn, of Paul Volcker's independent inquiry. The next stage in his report, due in a few months, will be looking at other country involvement. And, finally, Vladimir Zhirinovsky, in an interview on Moscow Radio, said I didn't get any money from Iraq, I didn't sign any contracts and I didn't see any oil -- Daryn.

KAGAN: Well, let's look forward to that Volcker report.

What could be the ramifications from that if that's going to have more respect within the U.N.?

ROTH: These reports and these committee investigations are kind of all tripping over each other. What will be interesting is that tomorrow on Capitol Hill, George Galloway, a British parliamentarian who opposed the war and opposed U.N. sanctions on Iraq, he's been called to testify. He's been invited to testify. He was accused by the Senate committee last week of accepting millions of barrels of oil rights. That could be a pretty contentious hearing. Galloway says he's going there with both guns blazing.

KAGAN: All right, we'll be -- how about we dip in and listen to that tomorrow morning?

Richard Roth, thank you.

Right now we're going to take a look at other stories making news coast to coast.

First, the Oakland As. A fan there now facing criminal charges after throwing a cup of beer at Jason Giambi. The New York Yankees' slugger was walking back to the dugout when he was slammed with the beer.

More than 100 people were denied holy communion at St. Paul Cathedral in Minnesota. The group was wearing rainbow sashes as a show of support for gay Catholics. The archbishop barred the group from communion because he said the sashes have become a protest against church teachings.

And it's the last day of campaigning for the Los Angeles mayoral candidates. Antonio Villaraigosa led incumbent James Hahn by double digits in a recent poll. But an expected lower voter turnout tomorrow makes this race really tough to call.

Still to come on CNN LIVE TODAY, so you want to be a radio star? We're going to tell us about an exciting new idea that might help you become the next shock jock of the airwaves, or something even better than that.

Plus, bad news for summer travelers. Airline fares are going up again. We'll have that story and a check of the financial markets coming up next.

(COMMERCIAL BREAK)

KAGAN: Well, what is going on on Wall Street with these positive numbers?

Susan Lisovicz -- oh, Kathleen Hays is here.

KATHLEEN HAYS, CNN CORRESPONDENT: Hi there, Daryn.

KAGAN: I heard Susan...

HAYS: Surprise!

KAGAN: ... Kathleen, Kathleen. You're all welcome here.

Good to see you.

HAYS: Well, and it's always lovely to see you, too, Daryn Kagan.

KAGAN: Sure.

HAYS: Absolutely.

And as you may recall, watching the markets last week kind of challenging. Ended the week pretty much down on the blue chips. This morning holding onto some moderate gains. A plus here, crude oil prices lower, back below $48.

You can see the Dow Industrials are up 45 points. The Nasdaq Composite is up very, very fractionally.

In the beleaguered airline industry, an important story. Merger talks between US Airways and America West are heating up. Reports say the two are in advanced negotiations with potential equity investors, the people with the money. The carriers need to raise about $500 million in financing before securing the deal.

Here's an interesting twist, because Europe's Airbus and the United States' Boeing are major competitors. Well, as part of this deal, Airbus might provide the bulk of the financing in return for orders for about 20 of the company's new jetliners. Now, if this merger does take place, the new US Airways would be the nation's sixth largest carrier, pushing aside Southwest Airlines.

Right in time for the summer travel season, airlines are reportedly hiking fares for the seventh time in three months. It started last week, when American Airlines raised prices by $2 to $6 each way to compensate, of course, for these soaring fuel costs. Then Delta raised its fares by $10 to $20 in response. American came back, matched the increase. So did Continental, Northwest, United, US Airways and America West. So it's going to cost us a little bit more to fly.

That's the latest from Wall Street -- Daryn, back to you.

KAGAN: Excellent.

Great news there.

Thank you, Kathleen.

We will see you later in the morning.

College seniors may be looking forward to the pomp and circumstance in the ceremony of the graduation march. But are they on the right path for their first career job?

Here now, CNN's Veronica Delacruz with some advice from cnn.com.

(BEGIN VIDEO TAPE)

VERONICA DELACRUZ, 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. The five must-haves at cnn.com/us.

Good news for college grads looking for their first job. A recent survey by Career Builder 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 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 Career Builders job search engine on cnn.com.

After you've landed that first job, don't lose it. Log on 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 Dot-Com news desk, I'm Veronica Delacruz.

(END VIDEO TAPE)

KAGAN: Thank you, Veronica -- Jacqui Jeras, what was your first job out of college?

JACQUI JERAS, CNN METEOROLOGIST: I was a news reporter at KCAU- TV in Sioux City, Iowa.

KAGAN: Sioux City, Iowa.

Go Sioux City. All right.

What do we have in weather?

JERAS: Hey, we are talking about hurricane season, right around the corner. Today is, or yesterday, actually, was the start of Hurricane Preparedness Week. That was May 15. It goes all the way through the 21st. And you want to start thinking now about what you're going to do when that hurricane comes, not if, but when. It's going to be a good possibility once again this year, Dr. Gray predicting an above average season at 12:30 Eastern time today. We're going to bring it to you live, NOAH's prediction for the 2005 season, which begins on June 1.

You want to have a plan, what you're going to do with your family. You want to have your disaster supply kit and you want to know what you're going to do to secure your home. Remember last week, Daryn? We had the survey results of what people do to prepare themselves for hurricanes.

KAGAN: Yes.

JERAS: Some of them were talking about masking tapes on your windows. So, not a good plan. Go to cnn.com/weather and you can find out some more information about hurricane preparedness.

Last year, of course, a very, very active season. We had 15 named storms, nine of which became hurricanes, six becoming major hurricanes. That's twice as many as normal for major hurricanes in the Atlantic Basin.

The Pacific, the eastern Pacific hurricane season began yesterday. All is looking fairly quiet in the development areas. We've got a couple of storm systems to talk about here.

(WEATHER REPORT)

KAGAN: Thank you, Jacqui.

JERAS: OK.

KAGAN: Coming up, the wave of the digital future.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: KCRW is handpicked music and NPR news streaming and now podcasting. Imagine that.

(END VIDEO CLIP)

KAGAN: It's not just radio or satellite radio anymore. We're going to tell you about a new tech trend called podcasting. That's coming up next.

(COMMERCIAL BREAK)

KAGAN: Our goal today -- to keep you au current, very current. Forget about broadcasting, not even blogging. Blogging is like so last Tuesday, isn't it?

DANIEL SIEBERG, CNN CORRESPONDENT: It kind of is, I guess.

KAGAN: Yes.

We're talking podcasting.

What's the difference?

Daniel Sieberg here to explain to us.

SIEBERG: Yes.

And, Daryn, a lot of people might have just caught up with blogging...

KAGAN: Yes, forget it.

SIEBERG: And now they're saying gosh, she's throwing podcasting at me now. Like slow down here.

KAGAN: There is no slowing down (INAUDIBLE).

SIEBERG: No slowing down, not on the Internet.

Podcasting is hard to describe if you don't know what blogging is. But it really is like an audio blog. It's like somebody having their own radio station online. And to explain it a little bit better, if you can remember the movie "Sideways," and the guys who were kind of wine geeks, well, we hung around with some of those guys in California to get a better idea of what podcasting is all about.

(BEGIN VIDEO TAPE)

MICHAEL GEOGHEGAN, EXECUTIVE PRODUCER, GRAPE RADIO: Welcome to Grape Radio, where enthusiasm for wine gets personal.

SIEBERG (voice-over): Grape Radio has mikes and a mixing board, all the tell-tale signs of a radio station, except for one minor detail -- Grape Radio is not actually on the radio.

GEOGHEGAN: The magic of the fact that once somebody puts a show up, it's automatically downloaded to your computer, I just really found compelling. SIEBERG: Meet Brian (ph)...

BRIAN: This is sweet. This is very nice.

SIEBERG: ... Lee (ph) and Jay (ph) -- wine enthusiasts turned talk show hosts, not just in the studio, but also on the road.

RON TAMEZ, HAMILTON OAKS VINEYARD: And this is our Melange du Sud that I was talking about.

SIEBERG: The show is recorded, then uploaded to the Internet and becomes a podcast -- an audio file playable on any I-Pod or portable music device.

UNIDENTIFIED MALE: It's just like a song, it's no different.

SIEBERG: They say they had 50 listeners for their first podcast in January. Five weeks later, the hosts say their 12th show was downloaded 3,000 times. Web sites like Podcast Alley list scores of different shows, some produced with nothing more than a computer and a microphone. Favorite DVDs, geek talk about gadgets, college sports, even podcasts about podcasting. And a racy talk show from a couple named Dawn and Drew in Wisconsin. It's ranked number one. Click on the number one you want, in this case, Grape Radio, and you're halfway there.

UNIDENTIFIED MALE: All you're looking for is this link right up here.

SIEBERG: Then you just have to copy and paste your link into a program like I-Podder and your podcast is ready to roll.

(on camera): You may have heard of podcasting through the grapevine. What started as an experiment last summer has now grown to more than 3,000 podcasts online. The question is will podcasting give broadcasting a run for its money?

HARRY SHEARER, RADIO SHOW HOST: KCRW is handpicked music and NPR News streaming and now podcasting. Imagine that.

SIEBERG (voice-over): Harry Shearer, a voice on "The Simpsons" and former cast member of "Saturday Night Live," has been on the radio since he was 7 years old. His weekly broadcast is now also a podcast.

SHEARER: There is a certain sadness to me that the broadcasting model we've known is dissolving. I think radio stations have to, and broadcasters generally, have to chase the audience. You know, the audience is moving to different technologies that are more convenient.

SIEBERG: Shearer says podcasting lets the listener pick the time and place, a necessity in today's busy society. But the quality of podcasts, well, Shearer says the jury is still out.

SHEARER: What podcasting reminds me of is blogging five years ago, which started out as a very personal form of communication via the Internet and has now become a medium for its practitioners to declare their own self-importance.

Elvis from Holland, hello.

SIEBERG: Back at Grape Radio, the guys say they just want to declare their passion for wine and have fun hobbying as talk show hosts.

UNIDENTIFIED MALE: It's a blast. It is an absolute blast.

SIEBERG: Perhaps it's the 21st century equivalent of ham radio, talking to the void just to see if anyone can hear you.

(END VIDEO TAPE)

SIEBERG: All right, so is podcasting going to take over the radio and broadcasting tomorrow, next month, next year? No. OK, but as a sign that things are starting to get noticed in the podcasting world, Infinity Broadcasting today is launching the first all podcast radio station. It's actually at KY -- or KYOUR radio online. You can see it right there.

And we'll just pause for a second and you can hear some of one of the podcasts.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: You know, the answer for her is obviously they are. Otherwise she wouldn't get that.

(END VIDEO CLIP)

SIEBERG: It probably sounds a lot like any other radio station, right? Well, that's sort of the whole idea. It's KYCY in San Francisco. It just started today. They've had more than 400 podcasts submitted to them by virtually anybody from across the country, and, in fact, around the world. So this is how they're trying to get podcasting a little bit more out into the mainstream.

But again, you know, it's got a little ways to go. We're talking about thousands of listeners here, not hundreds of thousands or millions.

KAGAN: Millions, exactly.

SIEBERG: Yes.

KAGAN: Now, if you're interested in finding a podcast that might interest you, what's the best way to do that?

SIEBERG: Yes, the best place to go is a Web site called podcastalley.com. They've got a whole list of them there. Again, a real range of different podcasts. It requires a little bit of technical knowledge to actually get it onto your I-Pod, or any other music player, we should say. But once you're there, they kind of walk you through it. And, you know, it's a burgeoning technology. It's not something that's really mainstream yet. But, you know, we've got to be cutting edge here, Daryn, so.

KAGAN: Did you sample any of the grape with the Grape Radio guys?

SIEBERG: Did we sample grapes?

KAGAN: Yes.

SIEBERG: Yes, we had some grapes.

KAGAN: Wine?

SIEBERG: I mean, you know, a gentleman...

KAGAN: You're over 21. You can say.

SIEBERG: ... never tells, Daryn.

KAGAN: OK. All right, well, that's not fair.

SIEBERG: But, you know, research is important with any story.

KAGAN: So on the geek factor, I'm just wondering, have you seen the new "Star Wars?"

SIEBERG: Yes, of course I've seen the new "Star Wars." I would not be a true technology correspondent if I had not seen it.

KAGAN: And a quick review?

SIEBERG: I would say much better than the previous two.

KAGAN: All right, very good.

SIEBERG: Yes, yes.

KAGAN: Well, we're going to talk about it. If you think Daniel is a "Star Wars" fan or if you're a "Star Wars" fan, we're going to really show you a man who really defines it. It could be the biggest collection of "Star Wars" merchandise in the galaxy.

And if you're looking for a good travel destination here on Earth, we're going to check out some great deals on some seasonal getaways as the second hour of CNN LIVE TODAY begins after a quick break.

(COMMERCIAL BREAK)

KAGAN: 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.

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