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CNN LIVE AT DAYBREAK

'Business Buzz'; Thousands Filing Past Pope's Body; Vatican Press Conference

Aired April 5, 2005 - 06:28   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: It's time now for a little "Business Buzz." Martha Stewart and her company enjoyed a rebirth after her release from prison. Now, another company is hoping to follow in Martha's footsteps by promoting the release of its namesake.
Carrie Lee joins us live to tell us more about that.

And this is a pretty famous guy amongst the young set.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: He certainly is, Carol. We're talking about Steve Madden, also the name of the company, the shoe retailer is now advertising the release of Steve Madden, the former CEO, from prison. Sound familiar?

Well, Madden has been in jail since September 2002 for a stock fraud scheme. The company has taken out a series of ads with slogans like, "a new meaning for the word springtime, Steve returns spring 2005." But the ads do not specifically mention where Madden has been.

Madden, of course, is no longer the company's chief, but his name is still used in a lot of the company's brands and he remains the creative and design chief. Again, it sounds familiar, right?

Madden's release date has yet to be announced. And when he is released, he'll spend time in a halfway house. But it certainly seems that the company was paying attention to Martha Stewart's success after her release.

Carol, it really seems like there's no such thing as bad publicity these days.

COSTELLO: I have questions.

LEE: OK.

COSTELLO: From what I remember, Steve Madden was overcharging his customers for their shoes. Wasn't that part of the allegation against him?

LEE: You know, I don't know if that was actually the thing that got him into trouble. There was definitely a stock scheme involved, and that was really the nuts and bolts of it.

COSTELLO: The nuts and bolts.

LEE: But the company has, I think, continued to do pretty well. I mean, you see the stores all over the place here in New York anyway. So, we'll see if they continue if that vein.

COSTELLO: And the other question I have is really he's no Martha Stewart. I mean, people don't know him as well as they do Martha Stewart.

LEE: Of course. Of course. And even though the company does have his name, the person in the name, he doesn't have the recognition Martha Stewart does. And he's not the whole creative force behind the company. It hasn't been built around Steve Madden, the person. It does keep his name, however, though.

COSTELLO: Interesting.

LEE: Yes.

COSTELLO: Carrie Lee, thank you.

LEE: All right.

COSTELLO: Here's what's ahead in the next half-hour of DAYBREAK.

Some of the most emotional testimony yet in the Michael Jackson trial. We'll hear how a past accuser's story went over in court.

And later on, a fiery celebration in the streets of Chapel Hill after last night's basketball game. Look at all of those people and fire in the middle.

You're watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News."

Witnessing history. Tens of thousands of people are in line to get a glimpse of Pope John Paul as his body lies in state. Police sat at one point the line was more than two miles long. The pope's funeral is Friday.

President Bush heads to West Virginia University at Parkersburg this morning. He's speaking on his favorite topic these days, the reform of Social Security.

Searching suspects' homes without telling them until later. That's just one controversial provision of the Patriot Act that's due to expire this year. Attorney General Alberto Gonzales goes before a Senate committee today to urge lawmakers to renew it and other expiring provisions.

Tar Heel's fans going crazy in North Carolina. You're looking at shots from Chapel Hill. North Carolina beat Illinois 75-70 in one big nail-biter of a game, their first national basketball title since 1993. And although this looks bad, Chad... CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: ... very few arrests.

MYERS: Correct.

COSTELLO: No injuries.

MYERS: No.

COSTELLO: They're just getting a little out of hand. And, again, I just don't understand that whole setting fires because we're happy thing.

MYERS: I was reading some of the wires from North Carolina. They said that the police were busy confiscating pieces of furniture that were set to go to the bonfire. So, people were carrying...

COSTELLO: So one kid was carrying a couch down the street.

MYERS: They said, OK, you bring that couch over here. You're not going to the fire with that.

(WEATHER REPORT)

COSTELLO: With mourning over the death of the pope, tradition and canon law dictate a moving forward as well. The Catholic Church's cardinals began meeting about two hours ago to discuss when to hold a conclave to select the successor. The Vatican is holding a news briefing any minute now to explain what happens between now and when a successor is chosen. John Paul's body is lying in state inside St. Peter's Basilica. About two million people are expected to file past before Friday's funeral.

Let's head live to Vatican City now to check in with our Rome bureau chief, Alessio Vinci. He is in the midst of all of those pilgrims.

And the line is more than two miles long this morning, Alessio?

ALESSIO VINCI, CNN ROME BUREAU CHIEF: That is correct. It does appear for the time being that the average waiting time from the beginning of the line to here, St. Peter's Basilica, that's another, what, 300 or 400 yards from me, it's about between four and five hours. People who have reached this point have about another hour to go or so. And, you know, the incredible thing about these people waiting is how calm they are.

And let me just show you how the line looks like from here. This is the Via della Conciliazione, which is the main boulevard that leads up to St. Peter's Square, and then eventually St. Peter's Basilica. This is just a fraction.

What is incredible is how calm everyone is, but the camera can't really give you a perspective of how long this is, because once you reach the end of this road, it turns towards the left, and it comes back up towards this way, you know, behind the buildings here on your left. So, really, we're talking about tens of thousands of people in line.

And what is incredible is that for people who have been waiting here for all this time, hours as we said, once they reach the inside of the basilica, they will be able to spend only a few seconds in front of the pope before, obviously, the Vatican officials and the Vatican guards there will tell them to move forward. So, these people have been waiting here for half a day and only able to spend only a few seconds.

I was able to talk to one little family from northern Italy. They had been driving all night, seven hours, to get here, in line for five hours, 20 seconds in front of the pope. They're going to go back and get their car and back up to northern Italy.

This is the kind of stories you hear here, Carol. You really need to have a lot of faith in order to go through this. At the same time, I can tell you, there are a lot of people here who are not necessarily Catholics. They are not necessarily devout Catholics. There are a lot of pilgrims, of course. But they're just people who want to come here because they feel they have a call and they have a duty. And the duty is to come here and pay their last respects to a man they love so much, of course John Paul, II -- Carol.

COSTELLO: A couple of questions for you, Alessio. On the front page of "The New York Times" this morning, there's a wonderful picture. These are the people gathered around the pope's body, and you can see them. Some are on the shoulders of others. And they're taking pictures of the pope's body. They seem to want to reach out and touch the pope's body. And, of course, they're not allowed to do that.

You mentioned that they're only allowed to stand near the body for a couple of seconds, but we're seeing people who are standing constantly around the pope's body. Who are those people? Do you know? And I know that there are also the Swiss guards posted around his body as well, to keep people farther back I would suppose.

VINCI: Well, there are those who are in charge of keeping security around the pope. As you know, there are, of course, tens of thousands, hundreds of thousands probably by tonight, who will pass in front of the body of the pope. So, of course, there are Vatican officials. There are security guards. There are the Swiss guards. And those who are allowed beyond obviously the gates, if you want, you know, are people who are obviously from the Vatican and making sure that nothing goes wrong.

Now, there is, of course, some kind of a security issue. And I can tell you, throughout the morning, the security has been beefed up. I'm going to ask our cameraman here, Calio (ph), to show me around. If you go this way, you can see there is quite a big presence of security. It is yet not the highest standard.

But as we come closer to the day on Friday of the funeral, where, of course, they're going to have up to two million people in addition, of course, to presidents, vice presidents, prime ministers, heads of governments, kings. And so, obviously, security will be much tighter later this week.

But for the time being, we've seen a steady stream of policemen as well as other security officials to make sure that everything is and remains under control.

There are some people who are having some health problems. Just moments ago, right before we came on the air, there was a woman who fainted. Italian paramedics came here, brought her quickly into a tent here nearby, where she's receiving first aid.

I must tell you what everybody has been telling me here is that from the point of view of the organization and the medical supplies, as well as water and blankets, overnight everything seems to be working perfectly. So, you know, people have been really happy about the kind of support they have received so far from Italian authorities -- Carol.

COSTELLO: Alessio, I want to bring in Chad now, because this whole process is just so fascinating. I know that Chad has questions, too. The noise we're hearing in the background, I know that masses are going on periodically throughout the day. Are they being played on those big video screens that they have set up? Is that what we're hearing?

VINCI: Well, right now, on the big video screens, you just see a picture of the pope. Let me see here if I can turn around. You know, this is live television, so it's going to be a bit shaky. But you see those giant screens there, and that's the picture of the pope.

What you hear from the speakers are prayers, songs. And, you know, when you hear obviously the music, you know, rising in sound, the people breaking in applause. And it's really, really moving.

I mean, there is one thing that really you feel by being here -- I've been here now several hours -- is that the people are here because obviously they want to pay their last respects to Pope John Paul II. But they're also here because they feel that for them, it is a duty.

And I was talking to an Italian family earlier, and I said, you know, 'Do you go to church every Sunday. Were you brought up Catholic?' And, of course, you know, 80 to 90 percent of the people in this country are Catholic. And they told me, "No, we don't go to church every Sunday. We actually rarely go to church." So, I asked them, 'Why are you here?' "It's because last night we felt so, we felt that we had to be here."

So, it is this kind of spontaneity that you see in the crowd here, besides, of course, talking to thousands of pilgrims who have come here because of their faith, of course -- Carol.

COSTELLO: Chad, take it away. Ask your question.

MYERS: I've heard about all of these extra flights that airlines are taking in and bringing in to Rome. Where are they going to put all of these people? The hotels must be sold out. Are there shelters opening up?

VINCI: Yes, although I do not believe that those who actually will be flying in will be then sleeping in a tent. I think those who are flying in have already some kind of a hotel reservation or perhaps they have friends here in Rome.

But there are also hundreds of thousands of people who are expected to come here by bus, by train, by car, and they have been set up in areas surrounding the city of Rome, where there are large parks or large stadiums. And in those areas, there is, of course, the opportunity to set up a tent, where they have been given a blanket, some food, water, hot coffee perhaps.

So, the Italian security officials and the Rome state officials here have been really working around the clock here to make sure that the city is ready for this huge influx, which, as I said earlier, is expected to top two million.

COSTELLO: Alessio Vinci, a wonderful job this morning, reporting live from St. Peter's Square at the Vatican. Thank you. We'll get back to you throughout the day here on CNN.

Now let's toss it over to Soledad O'Brien so she can tell us what's coming up on "AMERICAN MORNING."

Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.

You know, Alessio has been talking about those amazing pictures that we've been looking at, those long lines and the folks who are waiting for many, many hours to pay their respects to John Paul, II.

This morning, we're going to take a look at the pope's influence, not only people individually, but on global politics. Of course, he is credited with helping to topple communism in Eastern Europe. He was outspoken, though, a range of topics, the war in Iraq, nuclear weapons. We're going to talk this morning to a woman who knows a thing or two about world diplomacy. The former secretary of state, Madeleine Albright, is our guest.

Bill Hemmer is joining us live from Rome at the top of the hour on this "AMERICAN MORNING" just ahead -- Carol.

COSTELLO: We'll be here. Thank you, Soledad.

You are watching DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Checking the international markets this morning. The Nikkei up nearly 107 points, the FTSE up about, oh, 22 points, the DAX is up almost 19 points.

Your news, money, weather and sports. It's 6:47 Eastern. Here's what's all new this morning.

Tens of thousands of mourners are filing past the body of Pope John Paul II. As many as two million pilgrims are expected to file past the pope before his funeral on Friday.

A car bomb in southern Baghdad killed a U.S. soldier and injured four others. At the same time west of Baghdad, another car bomb killed an Iraqi civilian and wounded two others. Also this morning, an Iraqi brigadier general working for the interior ministry was kidnapped.

In money news, no surprise, just pain. The government says the average price of regular gas is now -- drum roll, please -- $2.21 per gallon. Fifty-eight percent of respondents in a CNN/"USA Today"/Gallup poll say the price is creating financial hardships for them.

In culture, the CBS military drama, "JAG," is signing off at the end of this month. Star David James Elliott had already announced plans to leave the show after it ends its 10th season on April 29.

In sports, Jack Nicklaus will play the Masters after all. The six-time green jacket winner had said the chances were between slim and none that he'd play. But now, Nicklaus says he feels ready to make his 45th Masters appearance.

To the forecast center.

(WEATHER REPORT)

COSTELLO: I believe, Chad, that you picked North Carolina to win the NCAA tournament.

MYERS: I did. Actually, I picked them to win by seven yesterday, and they won by five. But that's that two degree guarantee that weather guys always get.

COSTELLO: We have some pictures from the game with big Sean May. Maybe we don't. Oh, there he is.

MYERS: Right there.

COSTELLO: OK.

MYERS: Yes, dominated the game.

COSTELLO: He scored 26 points. He was named the tournament's most outstanding player, to know surprise of you, Chad.

MYERS: Now, I knew it. Two words yesterday was Sean May.

COSTELLO: Sean May.

MYERS: He is the man. His father played basketball, too.

COSTELLO: Exactly. It's the fourth national title for Carolina. It's their first since 1993. But it was the first title for head coach Roy Williams.

MYERS: That is phenomenal. He has been in 16 tournaments, 5 Final Fours, and he finally won his first.

COSTELLO: It's just amazing.

MYERS: Yes, it is.

COSTELLO: Very good for him.

MYERS: Good for him.

COSTELLO: Only a handful of Carolina fans actually got out of hand while celebrating in and around the campus in Chapel Hill. You're looking at the wonderful tradition of setting things on fire to celebrate. Police say 45,000 fans spilled out into the streets. No one seriously hurt here and, really, very few arrests made. So, that's good.

MYERS: Yes.

COSTELLO: And Illinois fans remained relatively calm, we should say, after their team lost in the final game. They simply carried candles down the street, which is much safer to set on fire than furniture.

MYERS: And the girls play tonight, Carol.

COSTELLO: They do indeed, Chad. And we'll have final results for you tomorrow.

MYERS: Right.

COSTELLO: Still ahead on DAYBREAK, troubling testimony in the Michael Jackson case. We'll have the courtroom drama for you next.

(COMMERCIAL BREAK)

COSTELLO: We're going to have a beautiful day in New York City.

It is a somber and yet beautiful day in Rome as well. We want to head there live now to check in with Bill Hemmer.

Bill, there was supposed to be this meeting happening this morning between cardinals. Do we have any new word about that?

BILL HEMMER, CNN ANCHOR: No word on if that meeting is still going on, Carol, or whether or not they've broken up.

Yesterday, that meeting lasted for about two hours. So, officially this would be the second meeting the cardinals have had here at the Vatican since the death of Pope John Paul II.

Once that meeting breaks up, Carol, we do anticipate...

COSTELLO: Bill -- Bill... HEMMER: ... to get a press conference from the Vatican...

COSTELLO: Bill -- Bill...

HEMMER: Yes.

COSTELLO: I'm sorry to interrupt you. No sooner did we begin speaking that Joaquin Navarro-Valls, the Vatican spokesman, has started this press conference about that meeting of the cardinals this morning. Let's listen.

(JOINED IN PROGRESS)

JOAQUIN NAVARRO-VALLS, VATICAN SPOKESMAN (through translator): But we can never be very punctual these days. It depends on the work of the cardinals, some information on the third congregation of the cardinals. Yesterday, there had been two congregations, meetings, and now this one.

Cardinals present are Rome today. There are 92 cardinals, three of the cardinals who were there. So the total now, the total number in the hall, these are in meetings in the senate hall, the total number is 82.

The themes and these themes concern, the topics concern the funeral on Friday. And then also other issues related to the apostolic constitution apart from other related elements to do the conclave.

Today, no specific decisions have been taken and are to be communicated not as yet. However, first of all, one of the questions is, has the will been read yet? No. The will has not been read yet.

And on the other question as regards to the burial of the holy father, what has been confirmed is that it will be, and some have already seen it, this will be where the 23rd was buried. It will be in the ground. I think that this part as yesterday we had mentioned there is no will of the pope to be buried elsewhere, outside the Vatican. This part is very clear now where he's going to be buried.

It has not yet been decided the exact date of the conclave. When they decide, then we will inform you.

I conclude by referring to two volumes, which although prepared for the cardinals, it could be interesting to yourselves. These are two wonderful volumes on how the conclave proceeds. And also both books have been published, prepared, by the pontificate's office. This was directly prepared for the cardinals. However, you can buy these texts. If you are interested, you can buy them from the Vatican bookshops. They are in Italian and in Latin.

One cannot hear the question because there's no microphone. I can tell that you have gone to the bookshops. Then it's on various issues, legislation. They can see it gives some background.

I now give the floor to Monsignor Marini, which will be followed by some questions.

BISHOP PIERO MARINI, VATICAN SPOKESMAN (through translator): There is such a vast topic that I will just give you some general issues. Then, of course, if you have questions, we will answer, if possible.

NAVARRO-VALLS (through translator): Just a few additional points. Monsignor Marini participates in the general congregation of cardinals. It is not that he's going to be less explicit, but he has this role.

MARINI: The period of the vacant seat, as the director said, these books have been published. It will give...

COSTELLO: From DAYBREAK, have a good day. "AMERICAN MORNING" now continues our coverage.

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