>> it's an agreement for the best interests of the children. >> we'll bring you the details in an "early show" exclusive. it's a presidential beer summit. they're heading to the white house today for a dose of beer diplomacy. breaking news overnight. a baby that was cut out of her murdered mother's womb has been found alive. >> this was the best case scenario out of this tragedy, that we have the child and it appears to be healthy. >> we'll bring you the latest. an "early" exclusive as jon and kate plus eight returns to tv. we've speak lives with the kids' very worried aunt and ungle. early this tuesday morning july 30th, 2009. hazy foggy thursday morning in new york city. good morning. i'm hairy smith along with maggie rodriguez. julie is on assignment. this custody agreement with michael jackson's kids in a moment. we're going inside the day of the life of bernard madoff. as we speak the convicted schemer is probably reporting to work at the prison's engraving section where he works every day from 7:00 in the morning until 2:30 in the afternoon making nameplates. we've got a lot more details about his new life and we'll hear what he has to say about his crime from two attorneys for his victims who visited him at the prison and who join us live a little bit later this morning. we're going to reintroduce you to kevin and jody, the aunt and uncle of the eight of jon and kate plus eight. they have serious concerns about the well of the kids as we show goes back on the air. first, we're breaking news this morning in the michael jackson custody case. in an exclusive interview, the lawyer for his mother katherine, says a custody agreement has been worked out. our dave price got the story, and he joins us in l.a. with the details. good morning, dave. >> reporter: good morning. in a wide-ranging interview mcmillan had very revealing things to say about the battle over michael jackson's estate and some major news about the fate of his children. >> it's an agreement for the best interests of the children. this is not a money deal. this is not about money. >> reporter: since michael's death over a month ago, 79-year-old katherine jackson has raised his three children. is the issue of custody and debbie rowe resolved? >> we will make an announcement shortly on that issue and all of the parties are resolved. there is no situation better than for these children than for them to be raised and reared in the loving care of mrs. katherine jackson. >> reporter: there was concern about joe jackson, that joe shouldn't be involved in raising the kids. >> i don't think it's valid at all. i think joe jackson is the husband of mrs. jackson, but he's not living in los angeles. oma oma. >> there's so many rumors about him being his child. joe jackson seemed to say about as much in an interview. >> i knew he had another son. >> reporter: he looks like a jackson. >> oh yes, he looks like a jackson and acts like a jackson, he can dance like a jackson. >> i'm not in the rumor business. i'm in the law business. i'm not going to entertain those questions right now. >> reporter: his will requests that katherine raise his children but not manage his money. for that it names two long-time business partners. katherine does get 40% of the estate, but she's fighting to be kept in the loop on all business matters. >> the question is what happened to this will in 2002? how come no one knew about it? how come mrs. jackson didn't know about it and i didn't know about it? how come we learned about it the day we filed a petition in court stating he died without a will? >>. >> reporter: in a sfamt michael witsman said he was very specific that she act as guardian of children and they being the executors of the will and trust. they accuse mcmillan of trying to rewrite michael's will. >> he's incorrect. we're not trying to rewrite the will. our concern is for anyone to have extraordinary powers they need to have extraordinary trust and integrity. >> reporter: the stakes are high in the battle over michael jackson's money. despite a $331 million debt his estimated net worth was $236 million. that doesn't include the boom in music sales since his death. how much is that estate worth? >> that estate is worth in my estimation a couple of billion dollars. you hear $500 million. don't buy it. >> reporter: katherine jackson applied for emergency funds. is she broke? >> i don't know where the broke issue comes -- came from. mr. jackson was very generous and provided for resources for his mother and his family and certainly his children. >> reporter: now, of course lon dell mcmillan has represented prince spike lee, stevie wonder. of course he's estimating that the estate that michael jackson has could be worth $2 billion if it achieves its potential earnings and that's if the estate is managed effectively. clearly, michael jackson in death could be even more of an industry than he was during his lifetime. now, during the next hour we'll have more on katherine jackson and her grandkids and just how they're coping and living day to day. harry. >> thanks very much. president obama is bringing harvard professor henry louis gates jr. and steve crowley to the white house this evening for a cold beer and discussion for race relations. chip reid joins us with more. good morning, chip. >> reporter: good morning, harry. you know this meeting was actually sergeant crowley's idea. he suggested it to the president. now all three men will sit around the picnic table on the white house south lawn and try to learn something from each other and to de-escalate tensions over race. >> race is still a troubling aspect of our society. >> reporter: after accusing police of acting stupidly for arresting a harvard professor in his own home president obama came under fire. now, he's trying to turn a political misstep into a teachable moment inviting the two men at the center of the controversy to the white house this evening for a beer. meanwhile, the woman who made the 911 call to police on professor gates spoke out for the first time. >> it was a target of scorn and ridicule because of the things i never said. the criticism hurt me as a person. >> reporter: some conservatives are directing their attacks at the president, even calling him a racist. >> this person has exposed himself as a guy over and over and over again who has a deep seeded hatred for white people or the white culture. this guy is i believe, a racist. >> reporter: and rush limbaugh made a veiled reference at race when talking about a food recall. the white house dismissed the talk as nothing more than tv and radio hosts trying to boost their ratings with conservative audiences. how exactly does the president plan to turn this meeting into a teachable moment? will there be any follow-up? that is still unclear. the white house says the only thing on the formal agenda is cold beer. harry. >> chip reid at the white house this morning. thank you. also following the beer summit this morning, cbs news chief washington correspondent bob schieffer. what do you make of all of this? >> well the president hopes this is going to be a teachable moment and i think the teachable moment here is it underlines what happens when someone says something they didn't mean to say, and they step back and say, you know, i probably shouldn't have said that which is what the president did. i mean what you had, you had a scholar who popped off when he shouldn't have. you have a policeman who let it get under his skin when he shouldn't have. and then the president stepped out and talked about it, you know, before he got all the facts. just look what happened though after the president said i probably shouldn't have done that. how many car wrecks and shootings and how many marriages might have been saved if one of the people involved had just said you know i didn't mean to say what i said, and hei shouldn't have. i think he took all of the air out of it. i think at the white house today is anticli mattic. the fact the president arranged this, that's what was important here. >> the other thing that seems to be overshadowed by the beer summit is this health care process. the poll numbers show erosion among the public for the president's health care proposals. is this thing going to get done and is it going to look anything like it looks right now? >> i think the answer to all those questions are, harry, no one can say with certainty. i think you are right to say when you look at it in the long term i think probably health care reform is probably a little more important and what happens there then what happens at the white house today. you know the fact that the public can't seem to make up its mind, what it thinks about this is reflective of the fact that nobody knows. there's so many different plans floating around on capitol hill right now. no one knows what's in them. no one knows how it will look at the end. i think we're just at the beginning of this debate on health care not at the end. >> bob schieffer, thanks very much. no lone star or liner batch as the beer summit tonight. take care. russ mitchell. is he here this morning? >> he is indeed. >> good morning. a miraculous discovery and horrific crime. a baby cut from his slain mother's womb has been found alive. a suspect who knew the mother is under arrest. terrell brown joins us now with details. >> reporter: the baby looks to be in good condition this morning. right now she's being evaluated at a new hampshire hospital. >> we wanted that child -- this was the best case scenario out of this tragedy, that we have the child and it appears to be healthy. >> reporter: the baby's mother was last seen a week ago. it's not clear when she was killed. monday her mutilated body was discovered in a closet. it was in her home in worcester, massachusetts. it wasn't until tuesday that the medical examiner realized the mother of three had been eight months pregnant. it was the strange behavior of julie cory that led to a break in the case. cory told mutual friends she gave birth sometime last week. cory's friends who didn't even know she was pregnant called police. >> many of her acquaintances watched the news and realized that there was a woman who was killed and missing the child. >> reporter: meanwhile, cory the baby and male friend was picked up last night at a shelter in plymouth new hampshire. cory was questioned and is in kwud this morning. she's charged with being a fugitive for justice with probable cause that she kidnapped the baby. >> thank you so much. we appreciate it. the baby girl survived the ordeal but what are her long-term prospects? jennifer ashton is here with more on that. this baby obviously, born under horrific circumstances. medically, what complications might the baby have that perhaps a baby who was born premature a month early wouldn't have? >> this is obviously a horrific tragedy and one that underlies the prevalence of abuse and violence against pregnant women. all indicated reports this baby was a month premature so about 36 weeks can survive very well outside the mother even under these circumstances. babies are resilient. this shows us that. obviously, they'll look at the baby closely in the hospital. again, violence murder crime against pregnant women is the leading cause of death in this country, and this is another reminder of that. >> jennifer ashton thank you so much. going to change directions now and tell you about a 7-year-old utah boy who went for a ride in the family car, and he did the driving. the incident was caught on tape sunday. he ran a few stop signs as police gave chase. he tried to make a run for it before police caught up. the boy said he took the joyride because he didn't want to go to church. look at him go. police say the boy is too young to prosecute. that is quite a story. but don't get any ideas out there. how about that? >> the kid bolted from the car. that was fantastic. >> his mom and dad will prosecute him. >> you're right. >> watch this. he thinks about it for a second. >> let's get out of here. >> oh my goodness. oh boy. good thing nobody was hurt though. the kid is fine and everybody is okay. lonnie quinn is here with our first check of the weather. >> we're talking about strong storms out there. where am i focusing m air? from texas into the deep south. if i can show you right now, the current radar picture around dallas texas look at this. they're really getting hit with heavy activity. it has been sparking tornado warnings in the area. it's going to be a tough go of it all day long. elsewhere, speaking of tornado warnings, we had a report of a tornado not far outside of new york city yesterday. it will be a calmer day today for the nort and that is your latest weather. over to you. still ahead this morning, lots of bernard madoff's victims would like a few minutes with him. ahead this morning we speak with two lawyers that spent five hours with madoff this week at the prison. jon and kate's fractured life. what's it doing to their eight kids? we'll hear from the children's aunt and uncle who have new concerns. new government guidelines for the swine flu vaccine. what do they mean for you? we have the latest on the h1n1 ahead this morning on "the early show." you know what, this looks just like the tree house i built with my dad. 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( john mayer's "say" plays throughout ) everyone's nervous going back to school. ♪♪ ♪♪ a hallmark card. it's the biggest little thing you can do. bernard madoff behind bars. now in north carolina prison he met on tuesday with two california attorneys representing some of madoff's victims. joseph cotchett and nancy fineman who join us this morning. good morning to you both. >> good morning, maggie. >> help us paint a picture of bernard madoff's new life at buttner federal prison. what was he wearing and how did he look to you? >> the first thing you notice is he's not wearing a brooks brothers suit. he's wearing tan prison gar about and a pair of tennis shoes he had to buy. it's not the usual wall street outfit you would imagine him to be in. >> how did he look to you physically? >> he looked gaunt. his hair is short. look, it's a prison. he's suffering the immediate throes of being thrust into this. it's a new world to him. it's not pleasant as it shouldn't be. the man is distraught. >> did you get that impression too, nancy? this is somebody who is depressed and sulking over his new reality? >> yeah. i think it hasn't quite hit him completely. he's having a hard time coming to grips. his ankle are swollen, he has high blood pressure and he got hustled down to buttner over an overnight trip and walked into a place he's never going to leave. >> joseph i understand his fellow inmates treat him like somewhat of a celebrity? >> they do. according to him they're constantly asking him for autographs autographs. he's the biggest swind ler in the country thrust in with a lot of people that have never seen the kind of money he was in touch with every day. >> you were both hoping to get information from him to help your clients recover what was lost. did you? >> yes, we did. he kept denying that anybody helped him. we asked questions for four and a half hours, and he gave us a lot of facts. you know we learned a lot of new things and confirmed things and we will follow-up on a lot he told us. >> i have 20 seconds left. joseph give me the biggest headline out of your meeting with madoff? >> the biggest headline to come out is the s.e.c. totally failed in its mission. they should have had this guy behind bars 10 to 15 years ago, and they blew it each and every time they interviewed him. >> joseph cotchett nancy fineman, thank you. >> thank you. >> we'll be right back. announcer: kids who don't eat breakfast aren't getting the nutrition they need - to keep their bodies strong. - ( school bell rings ) - hey, jessica. - hey, billy. announcer: a nutritious start to the day is essential. that's why carnation instant breakfast essentials supplies all the nutrients of a complete breakfast. so kids get the protein and calcium they need to help build strong muscles and healthy bones. carnation instant breakfast essentials. good nutrition from the start. want the inside scoop on healthy hair? ask the experts. 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[ stacy ] no wonder pantene's won more awards than even the leading salon brands. you be the expert. experience pantene. healthy makes it happen. discover a light yogurt like no other. activia light! delicious, fat free, and above all... the only one that has bifidus regularis and is clinically proven to help regulate your digestive system. activia light. ♪ activiaaa! ♪ . hello again. it's 25 past 7:00. there's a lot more blue sky above us this morning. sharon gibala has the rush after meteorologist tim williams in for marty bass in the weather center. partly sunny to mostly sunny. here's your forecast. around 70 degrees. high around 88 degrees. going to be out and about, just know there's a chance for showers tomorrow afternoon, 86, a good bit of sun on sunday. chance of a shower and temperatures in the 70s overnight. 90 on tuesday. now to sharon gibala with traffic control. good morning. two accidents working, one is many the gwen oak. two downed trees as well. between park heights and avery road a downed tree on york road. delays on the west side outer loop slow. there's a live look at the topside, no delays there. there's the west side. eat local, maryland'sbest.net. mayor dixon is being reindicted. mary bubala has the story. >> reporter: mayor dixon is going to focus on running the city while her attorneys focus on new charges against her. two new indictments accusing her of theft, and perjury. it comes after her former boyfriend agreed to cooperate with the investigation to provide new details about dixon. it's part of the state prosecutor's investigation into corruption at city hall. thank you. in annapolis, house speakers have create an 18-member panel to review how state aid is given out. they're looking to close a budget gap. the widow of steve mcnair will not exclude the rest of his family from his estate. the judge gave control to his wife, michelle. he was shot to death by his girlfriend. stay with wjz, what we can expect lots of cheers on this thursday morning. welcome back to "the early show" everybody. coming up. the latest on the swine flu. the government issued new guidelines for the vaccine. in our health watch we'll tell you if you should be one of the first in line to get the shot. all the advice has been don't bother to look at your 401(k) you're losing money and you can't do anything about it. this morning we're here to say it's time. take the bull by the horns and look at your 401(k) and reallocate your assets. you need to do that. we have good advice this morning. >> probably should have done that about six months ago. the jon and kate plus 8 saga continues. it returns on monday with an all-new episode since announcing the divorce plans next month. they've been embracing their single lives. we'll talk to the children's aunt and uncle in a moment. first michelle gielan is here with the latest. good morning. >> good morning. fans of jon and kate plus 8 will wa