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CNN Live At Daybreak

In Washington D.C., Preparations for Official Ceremonies Honoring Ronald Reagan; Significance of Yesterday's Unanimous U.N. Security Council Vote Endorsing Interim Iraqi Government

Aired June 09, 2004 - 05:00   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: Today, Ronald Reagan returns for the last time to Washington, the stage upon which he had such a major impact on the nation and the world.
It is Wednesday, June 9.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now.

More than 106,000 people filed past Ronald Reagan's casket in California. His body will be flown today to the nation's capital. It will then lie in state beneath the Capitol Rotunda, where thousands more are expected to pay their respects.

At the United Nations, hands up -- the Security Council unanimously has endorsed a resolution turning over power to the Iraqis. The measure calls for a new government in seven months.

In money news, are you tired of paying taxes? Well, then move to Cheyenne, Wyoming. A "Kiplinger" magazine study finds Cheyenne has the lowest taxes of any city in the nation. The highest? Bridgeport, Connecticut.

In sports, Kobe Bryant absolutely terrific last night. The L.A. Lakers' star hit a three pointer with about two seconds left in regulation to tie the Detroit Pistons; L.A. 99, Detroit 91 in overtime. Bryant scored 33 points.

In culture, the passion of money -- Mel Gibson's film distribution company is suing Regal Entertainment Group for $40 million. Gibson's company says Regal shortchanged it on the money earned from "The Passion of the Christ" -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: Good morning.

(WEATHER REPORT)

COSTELLO: The public viewing of Ronald Reagan's casket ended just over two hours ago at his presidential library in California. Later today, his body will be flown to Washington, where it will lie in state at the Capitol after a funeral procession.

We go now to CNN's Elaine Quijano.

She's live in Washington this morning -- good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Carol.

It is all quiet here on the Mall right now, but police have been gearing up for the tens of thousands of people that they are expecting to show up here later today. Now, police are estimating that up to 150,000 people may come to visit the Capitol Rotunda in order to view the president's casket. Others, however, military and other organization officials say that they estimate perhaps as many as a quarter of a million people will turn out.

Nevertheless, as you might imagine, this is a huge logistical and security challenge. Now, yesterday officials held a rehearsal to go through the events that will take place later today. That included run-throughs of the procession down Constitution Avenue with the horse drawn caissons; also a rehearsal of the military flyover and the 21 gun salute. In addition to that, a military band practiced its part.

Now, as I said, security is going to be a big challenge. It is expected to be extremely tight. People who come to the Capitol will not be able to bring backpacks, large purses or cameras. Police say they also plan to use magnetometers, bomb sniffing dogs and they will search people's bags as they go through and the line moves through later today, they anticipate.

Now, drivers, also, in the area are being told to anticipate some huge traffic snarls, not only here in the District of Columbia, but also in nearby Maryland once President Reagan's body arrives at Andrews Air Force Base later this afternoon.

Meantime, we are still about 16 hours or so away from when the public will actually begin to get to view the president's casket here at the Capitol.

But police, as I said, have already begun to gear up. Streets, they say, will close once the time draws closer to that procession. A number of other security measures in place. They say they are anticipating, as I said, tens of thousands of people -- Carol.

COSTELLO: I'm sure.

Elaine Quijano live in D.C. this morning.

Some 20 heads of state are expected to attend Reagan's state funeral, as well.

Former President Gerald Ford paid tribute to Reagan on CNN's "Larry King Live."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE") GERALD FORD, FORMER PRESIDENT OF THE UNITED STATES: He firmly believed in the ideology that was the prevailing point of view in the United States. He had firm views that I admired, I respected and he was a great statesman who we miss very badly.

(END VIDEO CLIP)

COSTELLO: CNN will have special live coverage of Ronald Reagan's final journey to Washington this morning. That begins at 11 Eastern.

Iraqis are closer to deciding their own fate after some tough negotiations at the U.N. Security Council. The Council has unanimously approved the resolution on the transfer of power. It calls for elections no later than January 31, 2005, and says multinational forces will serve at the request of the incoming interim government.

U.N. Secretary General Kofi Annan says he's pleased.

(BEGIN VIDEO CLIP)

KOFI ANNAN, U.N. SECRETARY GENERAL: I believe it is a genuine expression of the will of the international community, led by the Security Council, to come together again, after last year's divisions, and to help the Iraqi people take charge of their own political destiny in peace and freedom, under a sovereign government of their choosing.

(END VIDEO CLIP)

COSTELLO: Let's see what the reaction is to this decision in Europe, where several nations opposed the war.

Our European political editor Robin Oakley has that for you from London.

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN CORRESPONDENT (voice-over): European leaders are as relieved as President George Bush to have secured an agreement on the U.N. resolution charting the way for post-war Iraq. There's been plenty of haggling, notably with French President Jacques Chirac, over how much control the interim Iraqi government will have over coalition forces. But the mood has been easier than during the battles a year ago, when the U.S. and U.K. failed to get a U.N. resolution to endorse the war.

European leaders have acknowledged a common interest in calming the post-war chaos in Iraq. Though he reckons to have stiffened the resolution's wording on Iraqi control of the coalition forces, President Chirac wasn't this time looking for a fight and Germany's Chancellor Schroeder is keen to warm up his relationship with Washington, not least because Germany wants to win a permanent seat on the U.N. Security Council and will need Washington's help to have any hope of that. An agreement on the resolution doesn't, though, mean that those European nations which opposed the war will be sending troops to help in Iraq. Neither France nor Germany are willing to do so at this stage. Talk of NATO sending troops also seems premature. The 26 nation alliance is having trouble covering its commitments in Afghanistan.

For the moment, the problem for the coalition is keeping the 160,000 troops that are in Iraq. The polls have expressed growing doubts. The Czechs are due to pull out their military policemen next year. And Italy's prime minister, Silvio Berlusconi, under heavy political pressure at home over Italy's involvement, has expressed his desire for NATO to take up the burden.

Robin Oakley, CNN, London.

(END VIDEOTAPE)

COSTELLO: So, everybody's playing nice at the United Nations, coming together to get that resolution passed. And that spirit of cooperation also on display at the G8 meeting in coastal Georgia.

As CNN's John King reports, world leaders are speaking with one voice about the future of Iraq, at least the version laid out in that resolution.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Russia's Vladimir Putin was one of three Iraq war critics on the president's afternoon schedule. And from the White House perspective, word of the unanimous vote at a United Nations was a perfect kickoff to the Sea Island summit.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The vote today in the United Nations Security Council was a great victory for the Iraqi people. The international community showed that it stands side by side with the Iraqi people.

KING: Relieved, too, is embattled British Prime Minister Tony Blair, who called it a powerful message to terrorists and insurgents in Iraq.

TONY BLAIR, BRITISH PRIME MINISTER: I think they now know that it isn't just the United States and the U.K., or, indeed, the multinational force. It's the whole of the United Nations and the world community.

KING: Partnership is the president's summit theme. And Germany's chancellor was on script. Not a mention of his fierce opposition to war. Party praise for the new spirit of cooperation.

GERHARD SCHROEDER, GERMAN CHANCELLOR (THROUGH TRANSLATOR): We think that this resolution will be a good basis, a good foundation for enhancing stability. KING: The Group of Eight was split down the middle on the war -- the United States, Great Britain, Italy and Japan in favor; France, Germany, Canada and Russia vehemently opposed. Mr. Bush wants unity now and signed off on a number of concessions to win U.N. blessing on the summit's opening day.

BUSH: I think this is a very important moment on the -- on making sure that our objective is achieved.

KING: The Security Council vote is unlikely to bring new international troops or even major new financial commitments for Iraq's reconstruction. But the White House was eager to celebrate a victory after weeks, if not months, of Iraq setbacks.

The leaders are meeting at Sea Island, a resort community now surrounded by extraordinary security. Miles away, demonstrators made clear their views -- another reminder of how the Iraq war has damaged Mr. Bush's image on the world stage and here at home.

UNIDENTIFIED MALE: Hey, hey, ho, ho, George Bush has got to go!

KING (on camera): The president hopes this summit opens a new chapter of international cooperation on Iraq and also hopes it provides both words and images to rebut Democratic challenger John Kerry's assertion that Mr. Bush has failed at building and managing alliances.

John King, CNN, Savannah, Georgia.

(END VIDEOTAPE)

COSTELLO: First Lady Laura Bush will talk more about the G8 summit and memories of Ronald Reagan in the seven o'clock hour of "American Morning." Of course, that's 7:00 Eastern.

The real estate market has been hot, but big ticket items have stayed lukewarm at best. Well, that is changing. Just ahead, we'll take on the million dollar question.

They are home free. We'll have a live report for you out of Rome on three Italian men and their dramatic rescue by U.S. troops in Iraq.

And mum's the word right now on Mrs. Marc Anthony. Coming up, the one thing people seem more interested in than her latest marriage.

We'll be back.

(BEGIN VIDEO CLIP)

MARION ASNES, "MONEY" MAGAZINE: You may think of Las Vegas as the world's most grown up playground, but "Money" thinks of it as a great place to retire. Nevada offers low taxes, as well as its desert climate, and many people from more expensive states, like California, have decided to move there. Plentiful land means that Las Vegas suburbs can grow and grow and grow. It also means that housing prices have remained reasonable. Most newcomers to the Las Vegas area are flocking to suburbs where houses seem to be going up on a daily basis. And one comfort to some retirees -- you never have to set foot on the strip, unless you want to.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

President Reagan makes his final trip to Washington later today. His casket is due to arrive in D.C. late this afternoon. A formal funeral procession will then head to the Capitol Building, where the president will lie in state.

Members of Laci Peterson's family testified in Scott Peterson's murder trial. Laci's stepfather says he was suspicious of Scott Peterson's Christmas Eve fishing trip and asked him if he had a girlfriend.

In money news, interest rates may be on the rise. Fed Chairman Alan Greenspan says low rates are no longer needed to boost the economy. Interest rates haven't gone up in four years.

In sports, the Chicago White Sox belted six home runs off the Philadelphia Phillies. That's one shy of a team record, but still four shy of the major league record set by the Blue Jays back in 1997.

In culture, is there something wrong with TV ratings? The Nielsen Company has appointed an independent committee to monitor the monitors. Nielsen is facing controversy over its new system for measuring TV audiences. There are concerns minorities are being undercounted -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Now here's some big news. Crude oil prices are way down, to about $37 a barrel. Just a week ago, the price was six bucks a barrel higher.

Paula Hancocks watching the overseas markets.

Let's head live to London -- good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol. Well, the thing that everyone over here is focusing on is, of course, those comments from Alan Greenspan, the fact that now investors are thinking the U.S. could be more aggressive in its interest rate policy.

But at the moment, we're quite quiet on these European markets, waiting for Wall Street to open. We've had five straight sessions of gains on these European markets, so we have been doing fairly well so far. The other thing that everyone is focusing on, as they have been for goodness knows how long now, is the oil price. It's been very much in focus for the last month or so. When the oil price is high, then that means that it can eat away at the bottom line of quite a few of these sectors -- the autos, the airlines. They've been struggling somewhat recently.

But you can see light sweet crude there down $37.05 a barrel. That is way off the two decade high we saw last week of $42.45. So that's one thing that is helping sentiment on these markets, as well. And now Brent crude futures in London $34.94, down a third of one percent.

We are also waiting later on this afternoon or this morning your time for those U.S. inventories. The U.S. government will be telling us exactly how much inventories they do have ahead of the summer driving season.

But it does seem as though the supply crunch in fuel, in oil, that everybody was so worried about, might not materialize. Of course, some dealers are saying that we're not expecting these prices to slip any lower because, of course, there is always the worry that there could be attacks on oil infrastructures in Iraq, in the Middle East, and also a Nigerian strike is expected to affect and disrupt oil supplies, as well.

A quick look at currencies. And the dollar there has been strengthening against the euro after those comments from Alan Greenspan. It's up about a cent from the three month low we saw on Tuesday.

That's the latest from London -- back to you, Carol.

COSTELLO: Paula Hancocks live in London.

We're halfway through the year and a national realty group is already reporting a banner year for sales of existing homes. Typically that wouldn't include those million dollar plus palaces.

But as CNN's Jen Rogers reports, there's nothing typical about real estate right now.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT: Price may be no object for some real estate buyers. But finding something to buy is.

DOUG CHAPIN, REAL ESTATE INVESTOR: For better or for worse, there's a lot of people with $5 million in Los Angeles to spend it on a house.

ROGERS: Doug Chapin is one of those lucky people who have millions to invest in real estate, but is discovering an increasingly tight supply that's sending prices soaring.

CHAPIN: It's really not unusual for houses to be bid up in the hundreds of thousands of dollars.

ROGERS: While real estate has been red hot for years, sales of luxury homes, typically those over a million dollars, have been lagging. But that's all changed with wealthy buyers encouraged by the economy, the stock market and tax breaks that are lining their Armani pockets.

RORY BARISH, LUXURY REAL ESTATE AGENT: The luxury market is incredible. It is so hot.

ROGERS: Rory Barish helps clients buy and sell in some of southern California's most exclusive enclaves.

BARISH: Even us, you know, educated brokers, you know, it's just hard to list anything anymore, because we don't even know what prices are. It's like we could all see a house and go oh my god, what are they thinking, and then there could be 10 offers on it.

ROGERS: In fact, bidding wars are becoming commonplace as the super rich duke it out for a limited number of mega mansions.

(on camera): Now here in the fancy Belair neighborhood of Los Angeles, a home just sold for $16 million, $2.5 million above the asking price. Now, if you can believe it, even at that price, the new owners plan on tearing it down and building their own new dream home.

(voice-over): Beyond California's borders, it's a similar story. Dallas-Fort Worth -- sales of seven figure homes have jumped more than 50 percent this year. Seattle -- closings on homes over $2 million are up 96 percent.

While fear of interest rates climbing could be fueling the luxury market, don't assume higher rates will dampen sales. After all, many of these deals aren't even financed. It's cash only, and lots of it.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

COSTELLO: The Titanic rises again -- treasured memorabilia gets ready to make a splash on the auction block.

Also, could the third time be the charm? The tabloids are talking. The new hubby is hush-hush. And J-Lo may soon be eating for too. Hmm. Confused? We'll sort it all out for you this hour.

Stay tuned.

(COMMERCIAL BREAK) COSTELLO: Time for our DAYBREAK Eye-Openers.

Wait till you hear this one. Talk about a lack of respect. The "Tampa Tribune" ran an editorial lamenting the Tampa Bay Lightning's loss in the Stanley Cup Finals. The problem is the Lightning won. The paper apologized for the mistaken editorial, which was printed in nearly 300,000 copies of the paper. Talk about an oops. The Lightning won their first ever Stanley Cup by beating the Calgary -- how could that happen?

MYERS: I'm not sure.

COSTELLO: What do they have, two versions written and the wrong version got in?

MYERS: Could be.

COSTELLO: It's really sad.

Talk about a long distance race. Some American soldiers in Iraq will be running in next month's Peachtree Road Race right here in Atlanta. But the soldiers will still be in Iraq. Huh? Organizers of the Atlanta event issued numbers to the more than 100 soldiers who will run in the Baghdad division of the 10K race. That's really cool.

Sweet dreams -- the All Candy Expo underway in Chicago, with more than 500 candy makers showing off their latest confectionary creations. And, yes, even carb conscious selections have made their debut at the largest candy convention in the country. Unfortunately the event is not open to the public. But if you're going to eat candy, for goodness sakes, who cares about the carbs?

MYERS: Not open to the public?

COSTELLO: No, you don't get any of that low carb candy, Chad.

Let's talk about this auction, because I find it kind of disgusting.

MYERS: It's eerie.

COSTELLO: It is.

MYERS: Yes.

COSTELLO: It's the Titanic. Some of the mementoes from the Titanic are being auctioned off in New York.

MYERS: And not just a little, 475 lots. That means they've got a lot of stuff there that they're going to be -- sort of this -- I don't know...

COSTELLO: Stuff like this -- a postcard from a passenger who died. He mailed it from the ship before it headed to New York. Pre- auction estimate -- $20,000 to $25,000. MYERS: A life jacket from someone that -- he cut it off as the person was already not going to make it in the water, cut it off the guy so the guy could slip to the bottom of the ocean. They kept the life jacket. That's going to fetch $40,000.

COSTELLO: But it's framed. The life jacket is in a frame.

MYERS: That's still frightening to hear.

COSTELLO: And here's another thing. A photograph, including one of a female victim in a coffin, that will go from between $6,000 to $8,000.

MYERS: If you understand any of this, give us an e-mail, would you? Because I just -- I'm -- that kind of money for that, I don't -- it's just...

COSTELLO: It's just so macabre.

MYERS: It's macabre, right.

COSTELLO: I can understand like menus or china...

MYERS: Well, they have those. They have five menus.

COSTELLO: But a picture of a person in a coffin? I'm just not a good collector.

Here's what's all new in the next half hour of DAYBREAK.

It's unanimous -- after weeks of disagreement, the U.N. Security Council comes together.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When you saw him in front of the camera, it made you happy and proud to be an American, because you -- the way he handled himself made you feel good about yourself.

(END VIDEO CLIP)

COSTELLO: More than 106,000 people patiently waited to pay their respects to Ronald Reagan. We'll find out why from a faithful follower.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Eaten out lately? Well, more than likely you've been feeding profits back to Sysco, the largest food service distributor in the United States, providing everything from canned foods to filet mignon. Sysco supplies kitchen necessities to over 420,000 restaurants, hospitals and schools. Despite battling inflation and the cost of food, Sysco was able to cook up nearly double digit sales growth in the latest quarter.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired June 9, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Today, Ronald Reagan returns for the last time to Washington, the stage upon which he had such a major impact on the nation and the world.
It is Wednesday, June 9.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now.

More than 106,000 people filed past Ronald Reagan's casket in California. His body will be flown today to the nation's capital. It will then lie in state beneath the Capitol Rotunda, where thousands more are expected to pay their respects.

At the United Nations, hands up -- the Security Council unanimously has endorsed a resolution turning over power to the Iraqis. The measure calls for a new government in seven months.

In money news, are you tired of paying taxes? Well, then move to Cheyenne, Wyoming. A "Kiplinger" magazine study finds Cheyenne has the lowest taxes of any city in the nation. The highest? Bridgeport, Connecticut.

In sports, Kobe Bryant absolutely terrific last night. The L.A. Lakers' star hit a three pointer with about two seconds left in regulation to tie the Detroit Pistons; L.A. 99, Detroit 91 in overtime. Bryant scored 33 points.

In culture, the passion of money -- Mel Gibson's film distribution company is suing Regal Entertainment Group for $40 million. Gibson's company says Regal shortchanged it on the money earned from "The Passion of the Christ" -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: Good morning.

(WEATHER REPORT)

COSTELLO: The public viewing of Ronald Reagan's casket ended just over two hours ago at his presidential library in California. Later today, his body will be flown to Washington, where it will lie in state at the Capitol after a funeral procession.

We go now to CNN's Elaine Quijano.

She's live in Washington this morning -- good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Carol.

It is all quiet here on the Mall right now, but police have been gearing up for the tens of thousands of people that they are expecting to show up here later today. Now, police are estimating that up to 150,000 people may come to visit the Capitol Rotunda in order to view the president's casket. Others, however, military and other organization officials say that they estimate perhaps as many as a quarter of a million people will turn out.

Nevertheless, as you might imagine, this is a huge logistical and security challenge. Now, yesterday officials held a rehearsal to go through the events that will take place later today. That included run-throughs of the procession down Constitution Avenue with the horse drawn caissons; also a rehearsal of the military flyover and the 21 gun salute. In addition to that, a military band practiced its part.

Now, as I said, security is going to be a big challenge. It is expected to be extremely tight. People who come to the Capitol will not be able to bring backpacks, large purses or cameras. Police say they also plan to use magnetometers, bomb sniffing dogs and they will search people's bags as they go through and the line moves through later today, they anticipate.

Now, drivers, also, in the area are being told to anticipate some huge traffic snarls, not only here in the District of Columbia, but also in nearby Maryland once President Reagan's body arrives at Andrews Air Force Base later this afternoon.

Meantime, we are still about 16 hours or so away from when the public will actually begin to get to view the president's casket here at the Capitol.

But police, as I said, have already begun to gear up. Streets, they say, will close once the time draws closer to that procession. A number of other security measures in place. They say they are anticipating, as I said, tens of thousands of people -- Carol.

COSTELLO: I'm sure.

Elaine Quijano live in D.C. this morning.

Some 20 heads of state are expected to attend Reagan's state funeral, as well.

Former President Gerald Ford paid tribute to Reagan on CNN's "Larry King Live."

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE") GERALD FORD, FORMER PRESIDENT OF THE UNITED STATES: He firmly believed in the ideology that was the prevailing point of view in the United States. He had firm views that I admired, I respected and he was a great statesman who we miss very badly.

(END VIDEO CLIP)

COSTELLO: CNN will have special live coverage of Ronald Reagan's final journey to Washington this morning. That begins at 11 Eastern.

Iraqis are closer to deciding their own fate after some tough negotiations at the U.N. Security Council. The Council has unanimously approved the resolution on the transfer of power. It calls for elections no later than January 31, 2005, and says multinational forces will serve at the request of the incoming interim government.

U.N. Secretary General Kofi Annan says he's pleased.

(BEGIN VIDEO CLIP)

KOFI ANNAN, U.N. SECRETARY GENERAL: I believe it is a genuine expression of the will of the international community, led by the Security Council, to come together again, after last year's divisions, and to help the Iraqi people take charge of their own political destiny in peace and freedom, under a sovereign government of their choosing.

(END VIDEO CLIP)

COSTELLO: Let's see what the reaction is to this decision in Europe, where several nations opposed the war.

Our European political editor Robin Oakley has that for you from London.

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN CORRESPONDENT (voice-over): European leaders are as relieved as President George Bush to have secured an agreement on the U.N. resolution charting the way for post-war Iraq. There's been plenty of haggling, notably with French President Jacques Chirac, over how much control the interim Iraqi government will have over coalition forces. But the mood has been easier than during the battles a year ago, when the U.S. and U.K. failed to get a U.N. resolution to endorse the war.

European leaders have acknowledged a common interest in calming the post-war chaos in Iraq. Though he reckons to have stiffened the resolution's wording on Iraqi control of the coalition forces, President Chirac wasn't this time looking for a fight and Germany's Chancellor Schroeder is keen to warm up his relationship with Washington, not least because Germany wants to win a permanent seat on the U.N. Security Council and will need Washington's help to have any hope of that. An agreement on the resolution doesn't, though, mean that those European nations which opposed the war will be sending troops to help in Iraq. Neither France nor Germany are willing to do so at this stage. Talk of NATO sending troops also seems premature. The 26 nation alliance is having trouble covering its commitments in Afghanistan.

For the moment, the problem for the coalition is keeping the 160,000 troops that are in Iraq. The polls have expressed growing doubts. The Czechs are due to pull out their military policemen next year. And Italy's prime minister, Silvio Berlusconi, under heavy political pressure at home over Italy's involvement, has expressed his desire for NATO to take up the burden.

Robin Oakley, CNN, London.

(END VIDEOTAPE)

COSTELLO: So, everybody's playing nice at the United Nations, coming together to get that resolution passed. And that spirit of cooperation also on display at the G8 meeting in coastal Georgia.

As CNN's John King reports, world leaders are speaking with one voice about the future of Iraq, at least the version laid out in that resolution.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Russia's Vladimir Putin was one of three Iraq war critics on the president's afternoon schedule. And from the White House perspective, word of the unanimous vote at a United Nations was a perfect kickoff to the Sea Island summit.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The vote today in the United Nations Security Council was a great victory for the Iraqi people. The international community showed that it stands side by side with the Iraqi people.

KING: Relieved, too, is embattled British Prime Minister Tony Blair, who called it a powerful message to terrorists and insurgents in Iraq.

TONY BLAIR, BRITISH PRIME MINISTER: I think they now know that it isn't just the United States and the U.K., or, indeed, the multinational force. It's the whole of the United Nations and the world community.

KING: Partnership is the president's summit theme. And Germany's chancellor was on script. Not a mention of his fierce opposition to war. Party praise for the new spirit of cooperation.

GERHARD SCHROEDER, GERMAN CHANCELLOR (THROUGH TRANSLATOR): We think that this resolution will be a good basis, a good foundation for enhancing stability. KING: The Group of Eight was split down the middle on the war -- the United States, Great Britain, Italy and Japan in favor; France, Germany, Canada and Russia vehemently opposed. Mr. Bush wants unity now and signed off on a number of concessions to win U.N. blessing on the summit's opening day.

BUSH: I think this is a very important moment on the -- on making sure that our objective is achieved.

KING: The Security Council vote is unlikely to bring new international troops or even major new financial commitments for Iraq's reconstruction. But the White House was eager to celebrate a victory after weeks, if not months, of Iraq setbacks.

The leaders are meeting at Sea Island, a resort community now surrounded by extraordinary security. Miles away, demonstrators made clear their views -- another reminder of how the Iraq war has damaged Mr. Bush's image on the world stage and here at home.

UNIDENTIFIED MALE: Hey, hey, ho, ho, George Bush has got to go!

KING (on camera): The president hopes this summit opens a new chapter of international cooperation on Iraq and also hopes it provides both words and images to rebut Democratic challenger John Kerry's assertion that Mr. Bush has failed at building and managing alliances.

John King, CNN, Savannah, Georgia.

(END VIDEOTAPE)

COSTELLO: First Lady Laura Bush will talk more about the G8 summit and memories of Ronald Reagan in the seven o'clock hour of "American Morning." Of course, that's 7:00 Eastern.

The real estate market has been hot, but big ticket items have stayed lukewarm at best. Well, that is changing. Just ahead, we'll take on the million dollar question.

They are home free. We'll have a live report for you out of Rome on three Italian men and their dramatic rescue by U.S. troops in Iraq.

And mum's the word right now on Mrs. Marc Anthony. Coming up, the one thing people seem more interested in than her latest marriage.

We'll be back.

(BEGIN VIDEO CLIP)

MARION ASNES, "MONEY" MAGAZINE: You may think of Las Vegas as the world's most grown up playground, but "Money" thinks of it as a great place to retire. Nevada offers low taxes, as well as its desert climate, and many people from more expensive states, like California, have decided to move there. Plentiful land means that Las Vegas suburbs can grow and grow and grow. It also means that housing prices have remained reasonable. Most newcomers to the Las Vegas area are flocking to suburbs where houses seem to be going up on a daily basis. And one comfort to some retirees -- you never have to set foot on the strip, unless you want to.

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COSTELLO: Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

President Reagan makes his final trip to Washington later today. His casket is due to arrive in D.C. late this afternoon. A formal funeral procession will then head to the Capitol Building, where the president will lie in state.

Members of Laci Peterson's family testified in Scott Peterson's murder trial. Laci's stepfather says he was suspicious of Scott Peterson's Christmas Eve fishing trip and asked him if he had a girlfriend.

In money news, interest rates may be on the rise. Fed Chairman Alan Greenspan says low rates are no longer needed to boost the economy. Interest rates haven't gone up in four years.

In sports, the Chicago White Sox belted six home runs off the Philadelphia Phillies. That's one shy of a team record, but still four shy of the major league record set by the Blue Jays back in 1997.

In culture, is there something wrong with TV ratings? The Nielsen Company has appointed an independent committee to monitor the monitors. Nielsen is facing controversy over its new system for measuring TV audiences. There are concerns minorities are being undercounted -- Chad.

MYERS: Good morning, Carol.

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COSTELLO: Those are the latest headlines.

Now here's some big news. Crude oil prices are way down, to about $37 a barrel. Just a week ago, the price was six bucks a barrel higher.

Paula Hancocks watching the overseas markets.

Let's head live to London -- good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol. Well, the thing that everyone over here is focusing on is, of course, those comments from Alan Greenspan, the fact that now investors are thinking the U.S. could be more aggressive in its interest rate policy.

But at the moment, we're quite quiet on these European markets, waiting for Wall Street to open. We've had five straight sessions of gains on these European markets, so we have been doing fairly well so far. The other thing that everyone is focusing on, as they have been for goodness knows how long now, is the oil price. It's been very much in focus for the last month or so. When the oil price is high, then that means that it can eat away at the bottom line of quite a few of these sectors -- the autos, the airlines. They've been struggling somewhat recently.

But you can see light sweet crude there down $37.05 a barrel. That is way off the two decade high we saw last week of $42.45. So that's one thing that is helping sentiment on these markets, as well. And now Brent crude futures in London $34.94, down a third of one percent.

We are also waiting later on this afternoon or this morning your time for those U.S. inventories. The U.S. government will be telling us exactly how much inventories they do have ahead of the summer driving season.

But it does seem as though the supply crunch in fuel, in oil, that everybody was so worried about, might not materialize. Of course, some dealers are saying that we're not expecting these prices to slip any lower because, of course, there is always the worry that there could be attacks on oil infrastructures in Iraq, in the Middle East, and also a Nigerian strike is expected to affect and disrupt oil supplies, as well.

A quick look at currencies. And the dollar there has been strengthening against the euro after those comments from Alan Greenspan. It's up about a cent from the three month low we saw on Tuesday.

That's the latest from London -- back to you, Carol.

COSTELLO: Paula Hancocks live in London.

We're halfway through the year and a national realty group is already reporting a banner year for sales of existing homes. Typically that wouldn't include those million dollar plus palaces.

But as CNN's Jen Rogers reports, there's nothing typical about real estate right now.

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JEN ROGERS, CNN CORRESPONDENT: Price may be no object for some real estate buyers. But finding something to buy is.

DOUG CHAPIN, REAL ESTATE INVESTOR: For better or for worse, there's a lot of people with $5 million in Los Angeles to spend it on a house.

ROGERS: Doug Chapin is one of those lucky people who have millions to invest in real estate, but is discovering an increasingly tight supply that's sending prices soaring.

CHAPIN: It's really not unusual for houses to be bid up in the hundreds of thousands of dollars.

ROGERS: While real estate has been red hot for years, sales of luxury homes, typically those over a million dollars, have been lagging. But that's all changed with wealthy buyers encouraged by the economy, the stock market and tax breaks that are lining their Armani pockets.

RORY BARISH, LUXURY REAL ESTATE AGENT: The luxury market is incredible. It is so hot.

ROGERS: Rory Barish helps clients buy and sell in some of southern California's most exclusive enclaves.

BARISH: Even us, you know, educated brokers, you know, it's just hard to list anything anymore, because we don't even know what prices are. It's like we could all see a house and go oh my god, what are they thinking, and then there could be 10 offers on it.

ROGERS: In fact, bidding wars are becoming commonplace as the super rich duke it out for a limited number of mega mansions.

(on camera): Now here in the fancy Belair neighborhood of Los Angeles, a home just sold for $16 million, $2.5 million above the asking price. Now, if you can believe it, even at that price, the new owners plan on tearing it down and building their own new dream home.

(voice-over): Beyond California's borders, it's a similar story. Dallas-Fort Worth -- sales of seven figure homes have jumped more than 50 percent this year. Seattle -- closings on homes over $2 million are up 96 percent.

While fear of interest rates climbing could be fueling the luxury market, don't assume higher rates will dampen sales. After all, many of these deals aren't even financed. It's cash only, and lots of it.

Jen Rogers, CNN Financial News, Los Angeles.

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COSTELLO: The Titanic rises again -- treasured memorabilia gets ready to make a splash on the auction block.

Also, could the third time be the charm? The tabloids are talking. The new hubby is hush-hush. And J-Lo may soon be eating for too. Hmm. Confused? We'll sort it all out for you this hour.

Stay tuned.

(COMMERCIAL BREAK) COSTELLO: Time for our DAYBREAK Eye-Openers.

Wait till you hear this one. Talk about a lack of respect. The "Tampa Tribune" ran an editorial lamenting the Tampa Bay Lightning's loss in the Stanley Cup Finals. The problem is the Lightning won. The paper apologized for the mistaken editorial, which was printed in nearly 300,000 copies of the paper. Talk about an oops. The Lightning won their first ever Stanley Cup by beating the Calgary -- how could that happen?

MYERS: I'm not sure.

COSTELLO: What do they have, two versions written and the wrong version got in?

MYERS: Could be.

COSTELLO: It's really sad.

Talk about a long distance race. Some American soldiers in Iraq will be running in next month's Peachtree Road Race right here in Atlanta. But the soldiers will still be in Iraq. Huh? Organizers of the Atlanta event issued numbers to the more than 100 soldiers who will run in the Baghdad division of the 10K race. That's really cool.

Sweet dreams -- the All Candy Expo underway in Chicago, with more than 500 candy makers showing off their latest confectionary creations. And, yes, even carb conscious selections have made their debut at the largest candy convention in the country. Unfortunately the event is not open to the public. But if you're going to eat candy, for goodness sakes, who cares about the carbs?

MYERS: Not open to the public?

COSTELLO: No, you don't get any of that low carb candy, Chad.

Let's talk about this auction, because I find it kind of disgusting.

MYERS: It's eerie.

COSTELLO: It is.

MYERS: Yes.

COSTELLO: It's the Titanic. Some of the mementoes from the Titanic are being auctioned off in New York.

MYERS: And not just a little, 475 lots. That means they've got a lot of stuff there that they're going to be -- sort of this -- I don't know...

COSTELLO: Stuff like this -- a postcard from a passenger who died. He mailed it from the ship before it headed to New York. Pre- auction estimate -- $20,000 to $25,000. MYERS: A life jacket from someone that -- he cut it off as the person was already not going to make it in the water, cut it off the guy so the guy could slip to the bottom of the ocean. They kept the life jacket. That's going to fetch $40,000.

COSTELLO: But it's framed. The life jacket is in a frame.

MYERS: That's still frightening to hear.

COSTELLO: And here's another thing. A photograph, including one of a female victim in a coffin, that will go from between $6,000 to $8,000.

MYERS: If you understand any of this, give us an e-mail, would you? Because I just -- I'm -- that kind of money for that, I don't -- it's just...

COSTELLO: It's just so macabre.

MYERS: It's macabre, right.

COSTELLO: I can understand like menus or china...

MYERS: Well, they have those. They have five menus.

COSTELLO: But a picture of a person in a coffin? I'm just not a good collector.

Here's what's all new in the next half hour of DAYBREAK.

It's unanimous -- after weeks of disagreement, the U.N. Security Council comes together.

Plus...

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UNIDENTIFIED MALE: When you saw him in front of the camera, it made you happy and proud to be an American, because you -- the way he handled himself made you feel good about yourself.

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COSTELLO: More than 106,000 people patiently waited to pay their respects to Ronald Reagan. We'll find out why from a faithful follower.

This is DAYBREAK for Wednesday.

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GERRI WILLIS, CNN CORRESPONDENT: Eaten out lately? Well, more than likely you've been feeding profits back to Sysco, the largest food service distributor in the United States, providing everything from canned foods to filet mignon. Sysco supplies kitchen necessities to over 420,000 restaurants, hospitals and schools. Despite battling inflation and the cost of food, Sysco was able to cook up nearly double digit sales growth in the latest quarter.

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