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CNN Live At Daybreak

Fight for Iraq From Najaf to Kufa; Scott Peterson Murder Trial; Scientists Press U.N. on Stem Cell Research

Aired June 03, 2004 - 06:31   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.


CAROL COSTELLO, CNN ANCHOR: Good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here's what's happening right now.
OPEC oil ministers are meeting right now in Beirut. The cartel's members are expected to increase production by as much as 11 percent to bring down the price of oil, but do not expect to pay less at the pump right away.

Three Italian hostages taken captive in Iraq have been seen alive for the first time in more than a month. The Arab TV network, Al- Jazeera, is showing this videotape of the men. In the tape, one hostage says their captors are treating them - quote - "excellently."

FBI Director Robert Mueller gets ready to testify once again on Capitol Hill. He's going before a House Appropriations Subcommittee today. He'll be talking about the agency's transformation since the September 11 attacks.

In money news, crude oil prices are on a rollercoaster ride. Overnight, the price dropped as low as $39.96 a barrel. That's down more than $2 from Tuesday's record high. It's up about 50 cents right now, but just a day ago the price zoomed up more than $2.

In sports, Smarty Jones is the odds-on favorite to win Saturday's Belmont Stakes and the first Triple Crown in 26 years. Odds makers make the undefeated horse the 2 to 5 favorite in the race.

In culture, Sotheby's in New York is auctioning off property from Katharine Hepburn's estate. A public exhibition begins today. The auction gets under way a week from today.

(WEATHER BREAK)

COSTELLO: As we speak, Iraq's new interim government is meeting in Baghdad, the second session in as many days. But right outside Baghdad battles rage on, a shift in the fighting, at least for today, as U.S. forces train their sights on Kufa in southern Iraq.

CNN's Guy Raz is embedded with the 237th Armored Battalion. He joins us live now.

What's happening?

GUY RAZ, CNN CORRESPONDENT: Carol, the battle in southern Iraq has now shifted definitively from Najaf to neighboring Kufa. Earlier this morning, U.S. forces clashed with Mehdi militia fighters. That is the militia that is loyal to the Shiite cleric, Muqtada al-Sadr.

Now, those clashes took place right in the heart of Kufa. The mission was designed, according to U.S. military officials here, to eliminate an insurgent mortar position that was around a school in Kufa.

Now, this forward operating base, where we're located now, is about a mile from the center of Kufa. This base has taken 50 mortars in the past 24 hours. And U.S. military officials here say they will continue to engage with this militia until it disbands and until its leader, Muqtada al-Sadr, turns himself over to Iraqi police.

Now, we understand that U.S. forces managed to find a fairly large weapons stash inside of this school. They recovered many mortars, rocket-propelled grenades and machine guns.

Now, these insurgents in the past few days have really stepped up the fight here. They've begun to fire 120 millimeter rounds on this forward operating base. Those are essentially miniature missiles. They have a kill radius of 30 meters. So, essentially, very, very devastating and very, very deadly weapons indeed -- Carol.

COSTELLO: Guy Raz reporting live from Kufa, Iraq, this morning.

More testimony is scheduled today in the Scott Peterson murder trial. In his opening statement, defense lawyer Mark Geragos says Peterson could not have killed his pregnant wife because the baby was born alive.

CNN's David Mattingly is covering the trial.

(BEGIN VIDEOTAPE)

MARK GERAGOS, DEFENSE ATTORNEY: Hi.

JACKIE PETERSON, MOTHER: Hey, hi.

DAVID MATTHINGLY, CNN CORRESPONDENT (voice over): Scott Peterson's mother showing her gratitude with a huge.

PETERSON: I'm a fan.

MATTINGLY: After Mark Geragos gave a bold finish to opening statements, proclaiming Scott Peterson is not only innocent, but "stone cold innocent."

In less than three hours, Geragos showed the jury maps, pinpointing multiple Laci Peterson sightings the day of her disappearance, autopsy photos of the baby the family called Connor, saying the baby was born alive after Laci disappeared. And he pointed out how detailed searches of the Peterson house and warehouse produced no evidence of murder. "Zip," he said. "Nothing. Nada. Not a thing."

Geragos also revealed that he will take the jury to the Berkeley Marina, where Scott Peterson went fishing. Geragos rejected the prosecution's claims that his client bought a boat in a pre-meditated plan to dispose of Laci Peterson's body. Instead, he said Scott Peterson was a lifelong and avid fisherman, and that his boat was too small to conceal the body of a woman eight months pregnant.

PETERSON: We knew the truth. It was nice to hear it publicly.

MATTINGLY: For the Peterson family, it was a day of satisfaction, as Geragos disputed much of the prosecution's characterization of Scott as a deceptive adulterer capable of murder. The suspicious picture of the bleach-blond Peterson arrested in April, for example, according to Geragos, is actually a snapshot of a man pounded by media and desperate for privacy.

(on camera): There is no dispute, however, of the portrait of a cheating husband. Geragos told the jury, you can call Scott Peterson a cad and his behavior boorish, but, he said, the evidence will not show that he is a murderer.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Coming up on DAYBREAK, technology and travel. Your future hotel stays could become quite high-tech.

Plus, religion, ethics and a whole lot more on the line as the United Nations takes on the issue of stem cell research. We'll be back.

(COMMERCIAL BREAK)

COSTELLO: It's time for a little business buzz. How about some high-speed room service? A top hotel chain will soon be offering a tech-savvy Web service.

Carrie Lee tells us what that chain is live from the Nasdaq Marketsite.

Hello.

CARRIE LEE, CNN FINANCIAL NEWS: The chain is Hyatt Hotels, Carol. "The Wall Street Journal" is reporting that Hyatt and T-Mobile USA are expected to announce a deal today to bring high-speed wireless Web access to Hyatt hotels.

The wireless technology is known as Wi-Fi, and it's expected to be available in almost all of Hyatt's more than 200 hotels and most of its rooms by mid-2005. Guests can expect to pay about $10 a day, unless they're already subscribers to T-Mobile's Wi-Fi service. Then they won't have to pay anything extra.

Marriott and Starwood Hotels already offer Wi-Fi in some of its locations. The fact that Hyatt, though, is going to make this available in most of its rooms, I believe, makes it quite a bit more accessible. Turning to markets, we are expecting some selling today. Of course, we have a big OPEC meeting in Beirut, so a lot of people are going to be paying attention to oil prices. We also have a lot of economic data to digest -- things like factory orders, a look at the non-manufacturing sector of our economy, to name a few. And then, of course, Carol, that big May jobs report coming tomorrow.

So, probably economic stories and oil prices are really going to the focus on Wall Street for the remainder of the week, but looking like we're going to see some selling, at least that's what the indications look like right now.

Back to you.

COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.

Human cloning and stem cell research top the agenda at the United Nations this week. The U.N. is considering a blanket ban on all forms of cloning research, including stem cells. Top scientists from around the world are pressing the U.N. to exclude therapeutic stem cell research from its proposed ban.

One man who is front and center at the United Nations session on cloning: Bernard Siegel, an attorney, child rights advocate, and would-be adoptive father to the Raelians' allegedly-cloned baby Eve. Yes, he is the man who sued for custody of the baby.

Mr. Siegel joins us live from New York.

Welcome.

BERNARD SIEGEL, GENETICS POLICY INSTITUTE: Thank you.

COSTELLO: Before we get to what you said at the meeting, we must talk about the Raelians. They are the scary public face of cloned babies. What ever happened to your efforts to adopt this baby Eve, the allegedly-cloned baby?

SIEGEL: Well, I really didn't want to adopt the baby. I was trying to find out if there was any truth behind their claim. The case revealed that the company was nothing more than a sham. It didn't have a board of directors or a street address. But it had taken half a million dollars from a West Virginia couple trying to clone a deceased child.

Essentially, I was shocked to find out that they, the people behind this -- it was a UFO cult -- had testified in Congress and the National Academy of Science, and were actually impacting public policy relating to stem cells.

COSTELLO: Is...

SIEGEL: That's why I created the Genetics Policy Institute.

COSTELLO: Well, is that a lasting thing? Do some members of the even the United Nations feel more afraid of the idea of cloning because of wacky groups like the Raelians?

SIEGEL: Well, the science is out there, but the real scientists that I presented to the United Nations think that it's very far fetched that human reproductive cloning will take place. And it certainly would be unethical and could never produce a normal baby. And the United Nations is right to want to stop reproductive cloning. But it shouldn't get confused with therapeutic cloning of stem cells that offers the hope for cures for millions of people.

COSTELLO: But you know that religion and politics enter these things, and some people don't distinguish between stem cell research and cloning.

SIEGEL: Well, that's true, but therapeutic cloning is taking a patient's DNA and putting it into an unfertilized egg. There's no pregnancy involved. There's no baby involved. It's something that's done in a dish, and these cells that are created could go back into a patient's body and perhaps repair a damaged organ. It is a major breakthrough in medicine, and it shouldn't be curbed, and certainly not by treaty in the United Nations.

COSTELLO: So, where does it stand now? After all of the testimony is said and done, what will happen? Will there be an outright ban? Or is there hope there won't be?

SIEGEL: Well, unfortunately, the United States and certain other governments want a total ban by treaty, and the deliberations are going to continue in October. We hope by having presented some of the leading stem cell scientists in the world, like Rudolph Yanish (ph) at MIT and Doug Melton (ph) at Harvard and others, that at least the U.N. has the facts now and will understand that reproductive cloning in bad, therapeutic cloning of stem cells offers promise to millions of people.

In October, they're going to take it up again, and let's hope they'll make the right decision and ban reproductive cloning but allow therapeutic cloning to continue.

COSTELLO: Just one last question. So, there may be some kind of global treaty that bans all forms of cloning, including stem cell research. Can that really stop it from happening?

SIEGEL: Well, I think countries who want to proceed with this in their own cultures will advance this research, but the sad thing is if the U.N. recommends a treaty to ban it, it would cast a pall on the research. Young scientists might not go into the field. Certain countries might adopt that treaty as their own laws and prevent this research from happening. It would have a serious impact. It's more than just a symbolism here. It's another battlefield in the United Nations in the battle for stem cell research.

COSTELLO: Bernard Siegel joining us live from New York, thank you.

SIEGEL: Thank you.

COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.

U.S. forces go after insurgents in the Iraqi city of Kufa. Troops backed by tanks take out insurgents who were firing mortars at a forward operating base. Thirty insurgents killed in the firefight.

In northern California, no immediate reports of damage from an earthquake in Placer County near the Nevada border. The magnitude 4.5 quake struck early this morning along the northern shore of Lake Tahoe.

Britain's air traffic control system is back up and running this morning, but a nearly hour-long shutdown earlier caused some big-time delays. The Airport Authority is trying to figure out what caused the computer glitch.

In money news, several U.S. airlines are in financial trouble again, and a House committee holds hearings today on airline finances. Among the witnesses, CEO's of Continental, Northwest, AirTran, America West, Frontier and United.

In sports, Kurt Warner's agent -- excuse me -- Kurt Warner's agent has been talking to the New York Giants, but there is no announcement yet. Warner is the quarterback who led the Rams to Super Bowl twice, but Saint Louis released him on Tuesday.

In culture, it may be the first of its kind, an ad by the Philadelphia Tourism Agency appealing to gay people to visit the city. The closing line? "Get your history straight and your nightlife gay."

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

Let's head live to New York and check in with Bill and Soledad. You're back!

BILL HEMMER, CNN ANCHOR: Look who I found.

SOLEDAD O'BRIEN, CNN ANCHOR: I'm back! Hello.

COSTELLO: You know, people get worried about you when you're gone.

O'BRIEN: Everyone thinks the minute I take a couple of days off I'm delivering.

COSTELLO: Exactly.

O'BRIEN: I have so long to go, I wish.

HEMMER: And?

O'BRIEN: No. You know what? No. Nothing happened.

HEMMER: How are you, Carol? Good morning to you.

COSTELLO: Good morning.

HEMMER: Among the many headlines this morning, there's this word from the Pentagon about the duty of thousands of American soldiers headed for Iraq and Afghanistan may have their duty extended. We'll get you to Barbara Starr to figure that story out this morning.

O'BRIEN: Also this morning, we're talking about Ahmed Chalabi. As you well know, he's accused of spying for Iran. Well, this morning we talk to Senator Joe Biden to ask him about some of these allegations. There are supporters here in the U.S. who say the story that's coming out is implausible, but there are many others who say that, in fact, he is the one who let Iran know that the U.S. had broken the code.

HEMMER: Also, our "Surviving Summer" series continues today. I know Chad liked that segment yesterday, Carol, because it was how to improve your deck on the back of your house. Today...

COSTELLO: He's obsessed.

HEMMER: Yes, we're going to go to the other end of the...

O'BRIEN: I want a deck. Can I do that in the city, just build a deck out my window?

HEMMER: Yes, you can. You're allowed. Today, we're going to look at amusement park safety, especially with the rollercoaster rides. A woman who have a very personal story joins us for her expertise on that this morning.

COSTELLO: No, because I'm going to go to an amusement park very soon, because I love those big, old wooden rollercoasters.

O'BRIEN: You do?

HEMMER: Then you may want to pay attention...

COSTELLO: I love that.

O'BRIEN: Oh, I find them so scary.

HEMMER: ... to keep you safe this summer, Carol, for that big...

O'BRIEN: I never go on those rides.

HEMMER: No?

COSTELLO: Yes, you're going to needlessly scare me, aren't you?

(CROSSTALK)

COSTELLO: Thank you, Bill and Soledad.

O'BRIEN: Not needlessly (UNINTELLIGIBLE).

COSTELLO: I know. I'm just kidding. See you in 10 minutes. Still to come on DAYBREAK, tale of the tapes, Enron traders caught making incriminating statements. Wait until you hear it. And we'll hear what California's top attorney has to say about these recordings.

(COMMERCIAL BREAK)

COSTELLO: We're talking about this next story, because if you haven't heard this, wait until you hear it this morning. Caught on tape, Enron traders doing business joking about manipulating the California power market, and there is plenty of colorful language, shall we say? Those tapes are now public record, thanks to an ongoing lawsuit.

Let's listen with CNN financial correspondent Jen Rogers.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL CORRESPONDENT (voice over): Back in 2000 when Enron was the largest electricity trader on the West Coast, Enron traders fought back the laughs as California fought rolling blackouts.

UNIDENTIFIED MALE: Oh, the best thing that could happen is (EXPLETIVE DELETED) an earthquake and let that thing float out to the Pacific and put them (EXPLETIVE DELETED) in candles.

ROGERS: Traders also cheered a wildfire that impacted supplies and boosted prices.

UNIDENTIFIED MALE: Burn, baby, burn!

UNIDENTIFIED MALE: That's a beautiful saying.

ROGERS: The language and attitude of Enron traders isn't rare on trading floors, where million-dollar decisions are made by the minute, often impacting the energy rates paid by consumers.

UNIDENTIFIED MALE: They're (EXPLETIVE DELETED) taking all the money back from you guys? All that money you guys stole from those poor grandmothers in California?

UNIDENTIFIED MALE: Yeah, Grandma Millie, man. But she's the one who couldn't figure out how to (EXPLETIVE DELETED) vote on the butterfly ballot.

UNIDENTIFIED MALE: Yeah, now she wants her (EXPLETIVE DELETED) money back for all the power you've charged right up -- jammed right up her (EXPLETIVE DELETED).

ROGERS: Grandma Millie isn't the only one who wants her money back. These tapes were made public by this Snohomish public utility in Washington State, which, along with other utilities, is suing, trying to recover some of Enron's profits from the California power crisis. ERIC CHRISTENSEN, SNOHOMISH PUBLIC UTILITY: We now have on tape in the words of Enron's own traders that they were engaged in criminal conspiracy to defraud electric rate payers.

ROGERS: Enron declined to comment on the tapes other than to say it is cooperating with all investigations. Two former Enron energy traders have pled guilty to charges of manipulating the California energy market, and another faces 11 counts of fraud.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: I told you you'd be a little shocked. Somebody else who is not laughing is California Attorney General Bill Lockyer. He says he's looking at the tapes as a key piece of evidence.

(BEGIN VIDEO CLIP)

BILL LOCKYER, CALIFORNIA ATTORNEY GENERAL: I don't think people are surprised in California about the degree and extent to which there was this market manipulation that ripped us off. What we still want is justice, and I hope this new evidence will contribute to both the civil and criminal prosecutions that are under way.

(END VIDEO CLIP)

COSTELLO: Lockyer says the tapes confirm the arrogance and greedy nature of Enron and what he calls other energy pirates. Now, the test is to see if something really will happen.

Chad and I will -- actually, Chad will give away that DAYBREAK mug. That's coming up next.

(COMMERCIAL BREAK)

COSTELLO: All right, give that thing away. That was graceful, wasn't it?

CHAD MYERS, CNN METEOROLOGIST: You sound so enthused!

COSTELLO: No, I am enthused.

MYERS: The lovely coffee mug. There you go.

The questions from yesterday and the answer, we had 83 correct people, 83 correct answers, and over 170 uncorrect answers.

COSTELLO: Incorrect.

MYERS: Incorrect.

COSTELLO: Whatever.

MYERS: You know what I mean. How many cities will the Olympic torch travel through this summer? Thirty-three in 34 days. And what former D.C. politician is seeking another run for local office? That was, obviously, Marion Barry.

COSTELLO: Hey!

MYERS: And the winner from Caldwell, Idaho. What are you doing awake? Mary Anne Olsen wins her mug.

COSTELLO: Congratulations, Mary Anne.

MYERS: Congratulations.

COSTELLO: The cup's in the mail.

MYERS: And now the one for today. Name the two leaders with whom President Bush is scheduled to meet in Italy?

COSTELLO: Ooh, a hard one.

MYERS: Well, one is easy. The other one is a little harder.

And No. 2, the estate of what actress will be exhibited then auctioned tomorrow and all the way through next week by Sotheby's in the next coming days?

We'll have the answer coming on Friday, tomorrow.

COSTELLO: Tomorrow.

MYERS: CNN -- Daybreak@CNN.com.

COSTELLO: You got that wrong yesterday.

MYERS: I did. Daybreak@CNN.com.

COSTELLO: Daybreak@CNN.com. Daybreak@CNN.com.

That does it for us today.

MYERS: Are we out of time?

COSTELLO: We are out of time.

MYERS: All right.

COSTELLO: So you make it a great day. I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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 June 3, 2004 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here's what's happening right now.
OPEC oil ministers are meeting right now in Beirut. The cartel's members are expected to increase production by as much as 11 percent to bring down the price of oil, but do not expect to pay less at the pump right away.

Three Italian hostages taken captive in Iraq have been seen alive for the first time in more than a month. The Arab TV network, Al- Jazeera, is showing this videotape of the men. In the tape, one hostage says their captors are treating them - quote - "excellently."

FBI Director Robert Mueller gets ready to testify once again on Capitol Hill. He's going before a House Appropriations Subcommittee today. He'll be talking about the agency's transformation since the September 11 attacks.

In money news, crude oil prices are on a rollercoaster ride. Overnight, the price dropped as low as $39.96 a barrel. That's down more than $2 from Tuesday's record high. It's up about 50 cents right now, but just a day ago the price zoomed up more than $2.

In sports, Smarty Jones is the odds-on favorite to win Saturday's Belmont Stakes and the first Triple Crown in 26 years. Odds makers make the undefeated horse the 2 to 5 favorite in the race.

In culture, Sotheby's in New York is auctioning off property from Katharine Hepburn's estate. A public exhibition begins today. The auction gets under way a week from today.

(WEATHER BREAK)

COSTELLO: As we speak, Iraq's new interim government is meeting in Baghdad, the second session in as many days. But right outside Baghdad battles rage on, a shift in the fighting, at least for today, as U.S. forces train their sights on Kufa in southern Iraq.

CNN's Guy Raz is embedded with the 237th Armored Battalion. He joins us live now.

What's happening?

GUY RAZ, CNN CORRESPONDENT: Carol, the battle in southern Iraq has now shifted definitively from Najaf to neighboring Kufa. Earlier this morning, U.S. forces clashed with Mehdi militia fighters. That is the militia that is loyal to the Shiite cleric, Muqtada al-Sadr.

Now, those clashes took place right in the heart of Kufa. The mission was designed, according to U.S. military officials here, to eliminate an insurgent mortar position that was around a school in Kufa.

Now, this forward operating base, where we're located now, is about a mile from the center of Kufa. This base has taken 50 mortars in the past 24 hours. And U.S. military officials here say they will continue to engage with this militia until it disbands and until its leader, Muqtada al-Sadr, turns himself over to Iraqi police.

Now, we understand that U.S. forces managed to find a fairly large weapons stash inside of this school. They recovered many mortars, rocket-propelled grenades and machine guns.

Now, these insurgents in the past few days have really stepped up the fight here. They've begun to fire 120 millimeter rounds on this forward operating base. Those are essentially miniature missiles. They have a kill radius of 30 meters. So, essentially, very, very devastating and very, very deadly weapons indeed -- Carol.

COSTELLO: Guy Raz reporting live from Kufa, Iraq, this morning.

More testimony is scheduled today in the Scott Peterson murder trial. In his opening statement, defense lawyer Mark Geragos says Peterson could not have killed his pregnant wife because the baby was born alive.

CNN's David Mattingly is covering the trial.

(BEGIN VIDEOTAPE)

MARK GERAGOS, DEFENSE ATTORNEY: Hi.

JACKIE PETERSON, MOTHER: Hey, hi.

DAVID MATTHINGLY, CNN CORRESPONDENT (voice over): Scott Peterson's mother showing her gratitude with a huge.

PETERSON: I'm a fan.

MATTINGLY: After Mark Geragos gave a bold finish to opening statements, proclaiming Scott Peterson is not only innocent, but "stone cold innocent."

In less than three hours, Geragos showed the jury maps, pinpointing multiple Laci Peterson sightings the day of her disappearance, autopsy photos of the baby the family called Connor, saying the baby was born alive after Laci disappeared. And he pointed out how detailed searches of the Peterson house and warehouse produced no evidence of murder. "Zip," he said. "Nothing. Nada. Not a thing."

Geragos also revealed that he will take the jury to the Berkeley Marina, where Scott Peterson went fishing. Geragos rejected the prosecution's claims that his client bought a boat in a pre-meditated plan to dispose of Laci Peterson's body. Instead, he said Scott Peterson was a lifelong and avid fisherman, and that his boat was too small to conceal the body of a woman eight months pregnant.

PETERSON: We knew the truth. It was nice to hear it publicly.

MATTINGLY: For the Peterson family, it was a day of satisfaction, as Geragos disputed much of the prosecution's characterization of Scott as a deceptive adulterer capable of murder. The suspicious picture of the bleach-blond Peterson arrested in April, for example, according to Geragos, is actually a snapshot of a man pounded by media and desperate for privacy.

(on camera): There is no dispute, however, of the portrait of a cheating husband. Geragos told the jury, you can call Scott Peterson a cad and his behavior boorish, but, he said, the evidence will not show that he is a murderer.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Coming up on DAYBREAK, technology and travel. Your future hotel stays could become quite high-tech.

Plus, religion, ethics and a whole lot more on the line as the United Nations takes on the issue of stem cell research. We'll be back.

(COMMERCIAL BREAK)

COSTELLO: It's time for a little business buzz. How about some high-speed room service? A top hotel chain will soon be offering a tech-savvy Web service.

Carrie Lee tells us what that chain is live from the Nasdaq Marketsite.

Hello.

CARRIE LEE, CNN FINANCIAL NEWS: The chain is Hyatt Hotels, Carol. "The Wall Street Journal" is reporting that Hyatt and T-Mobile USA are expected to announce a deal today to bring high-speed wireless Web access to Hyatt hotels.

The wireless technology is known as Wi-Fi, and it's expected to be available in almost all of Hyatt's more than 200 hotels and most of its rooms by mid-2005. Guests can expect to pay about $10 a day, unless they're already subscribers to T-Mobile's Wi-Fi service. Then they won't have to pay anything extra.

Marriott and Starwood Hotels already offer Wi-Fi in some of its locations. The fact that Hyatt, though, is going to make this available in most of its rooms, I believe, makes it quite a bit more accessible. Turning to markets, we are expecting some selling today. Of course, we have a big OPEC meeting in Beirut, so a lot of people are going to be paying attention to oil prices. We also have a lot of economic data to digest -- things like factory orders, a look at the non-manufacturing sector of our economy, to name a few. And then, of course, Carol, that big May jobs report coming tomorrow.

So, probably economic stories and oil prices are really going to the focus on Wall Street for the remainder of the week, but looking like we're going to see some selling, at least that's what the indications look like right now.

Back to you.

COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite.

Human cloning and stem cell research top the agenda at the United Nations this week. The U.N. is considering a blanket ban on all forms of cloning research, including stem cells. Top scientists from around the world are pressing the U.N. to exclude therapeutic stem cell research from its proposed ban.

One man who is front and center at the United Nations session on cloning: Bernard Siegel, an attorney, child rights advocate, and would-be adoptive father to the Raelians' allegedly-cloned baby Eve. Yes, he is the man who sued for custody of the baby.

Mr. Siegel joins us live from New York.

Welcome.

BERNARD SIEGEL, GENETICS POLICY INSTITUTE: Thank you.

COSTELLO: Before we get to what you said at the meeting, we must talk about the Raelians. They are the scary public face of cloned babies. What ever happened to your efforts to adopt this baby Eve, the allegedly-cloned baby?

SIEGEL: Well, I really didn't want to adopt the baby. I was trying to find out if there was any truth behind their claim. The case revealed that the company was nothing more than a sham. It didn't have a board of directors or a street address. But it had taken half a million dollars from a West Virginia couple trying to clone a deceased child.

Essentially, I was shocked to find out that they, the people behind this -- it was a UFO cult -- had testified in Congress and the National Academy of Science, and were actually impacting public policy relating to stem cells.

COSTELLO: Is...

SIEGEL: That's why I created the Genetics Policy Institute.

COSTELLO: Well, is that a lasting thing? Do some members of the even the United Nations feel more afraid of the idea of cloning because of wacky groups like the Raelians?

SIEGEL: Well, the science is out there, but the real scientists that I presented to the United Nations think that it's very far fetched that human reproductive cloning will take place. And it certainly would be unethical and could never produce a normal baby. And the United Nations is right to want to stop reproductive cloning. But it shouldn't get confused with therapeutic cloning of stem cells that offers the hope for cures for millions of people.

COSTELLO: But you know that religion and politics enter these things, and some people don't distinguish between stem cell research and cloning.

SIEGEL: Well, that's true, but therapeutic cloning is taking a patient's DNA and putting it into an unfertilized egg. There's no pregnancy involved. There's no baby involved. It's something that's done in a dish, and these cells that are created could go back into a patient's body and perhaps repair a damaged organ. It is a major breakthrough in medicine, and it shouldn't be curbed, and certainly not by treaty in the United Nations.

COSTELLO: So, where does it stand now? After all of the testimony is said and done, what will happen? Will there be an outright ban? Or is there hope there won't be?

SIEGEL: Well, unfortunately, the United States and certain other governments want a total ban by treaty, and the deliberations are going to continue in October. We hope by having presented some of the leading stem cell scientists in the world, like Rudolph Yanish (ph) at MIT and Doug Melton (ph) at Harvard and others, that at least the U.N. has the facts now and will understand that reproductive cloning in bad, therapeutic cloning of stem cells offers promise to millions of people.

In October, they're going to take it up again, and let's hope they'll make the right decision and ban reproductive cloning but allow therapeutic cloning to continue.

COSTELLO: Just one last question. So, there may be some kind of global treaty that bans all forms of cloning, including stem cell research. Can that really stop it from happening?

SIEGEL: Well, I think countries who want to proceed with this in their own cultures will advance this research, but the sad thing is if the U.N. recommends a treaty to ban it, it would cast a pall on the research. Young scientists might not go into the field. Certain countries might adopt that treaty as their own laws and prevent this research from happening. It would have a serious impact. It's more than just a symbolism here. It's another battlefield in the United Nations in the battle for stem cell research.

COSTELLO: Bernard Siegel joining us live from New York, thank you.

SIEGEL: Thank you.

COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.

U.S. forces go after insurgents in the Iraqi city of Kufa. Troops backed by tanks take out insurgents who were firing mortars at a forward operating base. Thirty insurgents killed in the firefight.

In northern California, no immediate reports of damage from an earthquake in Placer County near the Nevada border. The magnitude 4.5 quake struck early this morning along the northern shore of Lake Tahoe.

Britain's air traffic control system is back up and running this morning, but a nearly hour-long shutdown earlier caused some big-time delays. The Airport Authority is trying to figure out what caused the computer glitch.

In money news, several U.S. airlines are in financial trouble again, and a House committee holds hearings today on airline finances. Among the witnesses, CEO's of Continental, Northwest, AirTran, America West, Frontier and United.

In sports, Kurt Warner's agent -- excuse me -- Kurt Warner's agent has been talking to the New York Giants, but there is no announcement yet. Warner is the quarterback who led the Rams to Super Bowl twice, but Saint Louis released him on Tuesday.

In culture, it may be the first of its kind, an ad by the Philadelphia Tourism Agency appealing to gay people to visit the city. The closing line? "Get your history straight and your nightlife gay."

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

Let's head live to New York and check in with Bill and Soledad. You're back!

BILL HEMMER, CNN ANCHOR: Look who I found.

SOLEDAD O'BRIEN, CNN ANCHOR: I'm back! Hello.

COSTELLO: You know, people get worried about you when you're gone.

O'BRIEN: Everyone thinks the minute I take a couple of days off I'm delivering.

COSTELLO: Exactly.

O'BRIEN: I have so long to go, I wish.

HEMMER: And?

O'BRIEN: No. You know what? No. Nothing happened.

HEMMER: How are you, Carol? Good morning to you.

COSTELLO: Good morning.

HEMMER: Among the many headlines this morning, there's this word from the Pentagon about the duty of thousands of American soldiers headed for Iraq and Afghanistan may have their duty extended. We'll get you to Barbara Starr to figure that story out this morning.

O'BRIEN: Also this morning, we're talking about Ahmed Chalabi. As you well know, he's accused of spying for Iran. Well, this morning we talk to Senator Joe Biden to ask him about some of these allegations. There are supporters here in the U.S. who say the story that's coming out is implausible, but there are many others who say that, in fact, he is the one who let Iran know that the U.S. had broken the code.

HEMMER: Also, our "Surviving Summer" series continues today. I know Chad liked that segment yesterday, Carol, because it was how to improve your deck on the back of your house. Today...

COSTELLO: He's obsessed.

HEMMER: Yes, we're going to go to the other end of the...

O'BRIEN: I want a deck. Can I do that in the city, just build a deck out my window?

HEMMER: Yes, you can. You're allowed. Today, we're going to look at amusement park safety, especially with the rollercoaster rides. A woman who have a very personal story joins us for her expertise on that this morning.

COSTELLO: No, because I'm going to go to an amusement park very soon, because I love those big, old wooden rollercoasters.

O'BRIEN: You do?

HEMMER: Then you may want to pay attention...

COSTELLO: I love that.

O'BRIEN: Oh, I find them so scary.

HEMMER: ... to keep you safe this summer, Carol, for that big...

O'BRIEN: I never go on those rides.

HEMMER: No?

COSTELLO: Yes, you're going to needlessly scare me, aren't you?

(CROSSTALK)

COSTELLO: Thank you, Bill and Soledad.

O'BRIEN: Not needlessly (UNINTELLIGIBLE).

COSTELLO: I know. I'm just kidding. See you in 10 minutes. Still to come on DAYBREAK, tale of the tapes, Enron traders caught making incriminating statements. Wait until you hear it. And we'll hear what California's top attorney has to say about these recordings.

(COMMERCIAL BREAK)

COSTELLO: We're talking about this next story, because if you haven't heard this, wait until you hear it this morning. Caught on tape, Enron traders doing business joking about manipulating the California power market, and there is plenty of colorful language, shall we say? Those tapes are now public record, thanks to an ongoing lawsuit.

Let's listen with CNN financial correspondent Jen Rogers.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL CORRESPONDENT (voice over): Back in 2000 when Enron was the largest electricity trader on the West Coast, Enron traders fought back the laughs as California fought rolling blackouts.

UNIDENTIFIED MALE: Oh, the best thing that could happen is (EXPLETIVE DELETED) an earthquake and let that thing float out to the Pacific and put them (EXPLETIVE DELETED) in candles.

ROGERS: Traders also cheered a wildfire that impacted supplies and boosted prices.

UNIDENTIFIED MALE: Burn, baby, burn!

UNIDENTIFIED MALE: That's a beautiful saying.

ROGERS: The language and attitude of Enron traders isn't rare on trading floors, where million-dollar decisions are made by the minute, often impacting the energy rates paid by consumers.

UNIDENTIFIED MALE: They're (EXPLETIVE DELETED) taking all the money back from you guys? All that money you guys stole from those poor grandmothers in California?

UNIDENTIFIED MALE: Yeah, Grandma Millie, man. But she's the one who couldn't figure out how to (EXPLETIVE DELETED) vote on the butterfly ballot.

UNIDENTIFIED MALE: Yeah, now she wants her (EXPLETIVE DELETED) money back for all the power you've charged right up -- jammed right up her (EXPLETIVE DELETED).

ROGERS: Grandma Millie isn't the only one who wants her money back. These tapes were made public by this Snohomish public utility in Washington State, which, along with other utilities, is suing, trying to recover some of Enron's profits from the California power crisis. ERIC CHRISTENSEN, SNOHOMISH PUBLIC UTILITY: We now have on tape in the words of Enron's own traders that they were engaged in criminal conspiracy to defraud electric rate payers.

ROGERS: Enron declined to comment on the tapes other than to say it is cooperating with all investigations. Two former Enron energy traders have pled guilty to charges of manipulating the California energy market, and another faces 11 counts of fraud.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: I told you you'd be a little shocked. Somebody else who is not laughing is California Attorney General Bill Lockyer. He says he's looking at the tapes as a key piece of evidence.

(BEGIN VIDEO CLIP)

BILL LOCKYER, CALIFORNIA ATTORNEY GENERAL: I don't think people are surprised in California about the degree and extent to which there was this market manipulation that ripped us off. What we still want is justice, and I hope this new evidence will contribute to both the civil and criminal prosecutions that are under way.

(END VIDEO CLIP)

COSTELLO: Lockyer says the tapes confirm the arrogance and greedy nature of Enron and what he calls other energy pirates. Now, the test is to see if something really will happen.

Chad and I will -- actually, Chad will give away that DAYBREAK mug. That's coming up next.

(COMMERCIAL BREAK)

COSTELLO: All right, give that thing away. That was graceful, wasn't it?

CHAD MYERS, CNN METEOROLOGIST: You sound so enthused!

COSTELLO: No, I am enthused.

MYERS: The lovely coffee mug. There you go.

The questions from yesterday and the answer, we had 83 correct people, 83 correct answers, and over 170 uncorrect answers.

COSTELLO: Incorrect.

MYERS: Incorrect.

COSTELLO: Whatever.

MYERS: You know what I mean. How many cities will the Olympic torch travel through this summer? Thirty-three in 34 days. And what former D.C. politician is seeking another run for local office? That was, obviously, Marion Barry.

COSTELLO: Hey!

MYERS: And the winner from Caldwell, Idaho. What are you doing awake? Mary Anne Olsen wins her mug.

COSTELLO: Congratulations, Mary Anne.

MYERS: Congratulations.

COSTELLO: The cup's in the mail.

MYERS: And now the one for today. Name the two leaders with whom President Bush is scheduled to meet in Italy?

COSTELLO: Ooh, a hard one.

MYERS: Well, one is easy. The other one is a little harder.

And No. 2, the estate of what actress will be exhibited then auctioned tomorrow and all the way through next week by Sotheby's in the next coming days?

We'll have the answer coming on Friday, tomorrow.

COSTELLO: Tomorrow.

MYERS: CNN -- Daybreak@CNN.com.

COSTELLO: You got that wrong yesterday.

MYERS: I did. Daybreak@CNN.com.

COSTELLO: Daybreak@CNN.com. Daybreak@CNN.com.

That does it for us today.

MYERS: Are we out of time?

COSTELLO: We are out of time.

MYERS: All right.

COSTELLO: So you make it a great day. I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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