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CNN Live At Daybreak
America's Voice; New Security Steps; Korea Craze
Aired August 10, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And we've got a special programming note to tell you about. "LARRY KING LIVE," you'll want to catch it on Thursday night. The president and first lady will appear in a rare joint interview. "LARRY KING LIVE" airs at 9:00 Eastern, 6:00 Pacific Time.
All right, back to the election. Well, I guess that was part of the election as well. What does America think? Today, we look at the economy, the issues that get your vote, Catholic voters and the differences between men and women at the ballot box.
Live to Princeton, New Jersey, and Gallup Poll editor-in-chief Frank Newport.
Good morning, Frank.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.
Indeed, all of the news coverage has been about -- and we've just been through it -- terrorism and then, of course, what's happening in Iraq. I say all of the news coverage, a lot of it. But I keep coming back when I study our data here at Gallup to the importance of the economy. You know, the fed may raise interest rates this week. We'll see what happens there.
Look at our latest numbers. Is the economy getting better or getting worse? And in July we had had up to 51 percent -- that's that green line there -- saying the economy is getting better. Actually that's come back down again. So Americans themselves are becoming a little more pessimistic. Only a 5-point gap now in our latest poll; 48 percent say it's getting better, 43 getting worse. Those aren't really robustly optimistic numbers.
Also, a "TIME" magazine poll that was released this weekend asked Americans which of these will be most important to your presidential vote? The same question we've asked off and on over the year. We gave them four or five choices, and look at the answer there. Was it Iraq, terrorism, moral issues? No. At the top of the list, 27 percent of Americans say it's the economy.
So, whatever these candidates propose to do about jobs and inflation and oil prices may be the key to the election -- Carol.
COSTELLO: You have some more numbers on Catholics, because they're an important voting block this coming election.
NEWPORT: Oh, indeed. One quarter of Americans are Catholics. They are important. Bush himself was out courting the Knights of Columbus a week or two ago. Remember that? Kerry himself is the first Catholic nominee since John F. Kennedy. Look at the numbers. This is quite fascinating.
Catholics tilt towards Kerry, but it really depends on whether you go to church. Practicing Catholics go to Bush. They seem to be more sympathetic to his moral issues. Very interesting numbers. If you're in the middle and kind of attend mass just semi-frequently you tilt to Kerry.
And look at this: 40 percent of all Catholics don't go to church, seldom or never do they go to church. And of that 40 percent, 57 percent support Kerry.
So, within the Catholic group, it really depends on whether you go to mass or not.
COSTELLO: Fascinating information. Thank you, Frank Newport, live in New Jersey on DAYBREAK this morning.
Police in New York, northern New Jersey and Washington are widening their security alert this morning. Bill Prasad in Washington with some new information for you.
(BEGIN VIDEOTAPE)
BILL PRASAD, CNN CORRESPONDENT (voice over): Outside the nation's capital, police now inspect some cars and trucks in nearby Virginia and Maryland before they enter the district, part of the orange alert of a terrorist threat to target financial buildings.
GEORGE BAURIES, FORMER FBI COUNTERTERRORISM: For every thousand leads that go out, you're probably going to get a good percentage that come back and warrant a much deeper investigation.
PRASAD: Now officials focus on what could be a new terrorist threat: helicopters. Photos could be taken of targets like the New York Stock Exchange. Sources say al Qaeda operatives were scouting New York heliports. One source saying they were testing security. There was a discussion about the relative ease in which weapons could be smuggled on board helicopters.
For the first time, officials will begin screening passengers at New York heliports.
MAYOR MICHAEL BLOOMBERG, NEW YORK: Using an aircraft as a weapon, whether it is a fixed-wing or a rotary aircraft, is nothing new.
PRASAD: In Las Vegas, a terrorist controversy. A year after September 11, federal officials obtained video surveillance tapes suggesting terrorists might target casinos. But the city's mayor is angry. He says he was never told of the tapes.
MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: If there's a tape that affects our security, I would expect that they would make it available to me immediately.
PRASAD (on camera): The FBI says it did show the tape to some Nevada law enforcement officials. In the meantime, the Department of Homeland Security says even though Las Vegas is a known terrorist target, there is no imminent threat to the city.
In Washington, I'm Bill Prasad.
(END VIDEOTAPE)
COSTELLO: Thanks, Bill.
From you're fired to you're broke. Donald Trump's real estate fortune, well, it isn't so fortunate. That's ahead in our business buzz at 6:40 Eastern.
Then today's hot talker at 6:40 Eastern, this ad attacks John Kerry's war record. It is really nasty. But will it resonate in the battleground states? A look from the left and from the right.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: U.S. stocks will open flat this morning as investors are a little uncertain about today's expected interest rate hike. The Dow closed just above 9814. The Nasdaq down two and a quarter points to close, oh, at about 1775. The S&P 500 ended at 1065.
It's time for a little business buzz right now. From you're fired to you're broke. Millionaire Donald Trump's hotel business could be on the verge of going bust.
Live to the Nasdaq Marketsite and Carrie Lee.
I'm just shocked because of the recent hit show.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: You know, it's amazing, because "The Apprentice," his reality show, has been very successful. But Trump Hotel and Casino Resorts are a little bit of a different story here, Carol.
Key bondholders have agreed to take the company into voluntary bankruptcy and restructure its $1.8 billion in debt to get 400 million (AUDIO GAP). If this deal goes through, Donald Trump will cut his controlling stake to 25 percent. He will remain chairman of the company.
Now, Trump Casino and Hotel and Casino Resorts own four casinos, including the Taj Mahal in Atlantic City. And it's come close to defaulting on interest payments in the process, although it hasn't threatened the developer's non-casino real estate projects.
Again, if this deal goes through, stockholders will have the right to buy new shares in rights offerings, although some might say that that would be a gamble.
Carol -- back to you.
COSTELLO: Doesn't he have a new show this coming season?
LEE: I think he does have a new show, right, the second installment of "The Apprentice," if I'm correct here?
COSTELLO: Maybe he should, like, try out new executives to get his company...
LEE: Issue an IPO for a reality show, there you go. That's a new concept (UNINTELLIGIBLE).
COSTELLO: Oh, that's cruel. We shouldn't do that.
A quick look at the futures.
LEE: Yes. Stocks are looking like they could open modestly higher right now. But, of course, all eyes are going to be on the feds, seeing what they decide to do on interest rates at 2:15 Eastern today. Wall Street is widely expecting a quarter-point hike, although continued hikes are a little bit more of a question now we got that weak jobs report.
Cisco Systems is coming out after the close of trading. Wall Street is looking for 20 cents a share versus 15 on the bottom line, sales of about 5.9 billion in profits.
Carol, they're probably going to have to beat those expectations, though, as they have in the past to satisfy Wall Street.
COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite. Many thanks to you.
The hot talker this morning: election 2004. It's getting a little nastier and more interesting.
This morning's debate, on the right from ABC Radio in New York, talk show host Steve Malzberg, and on the left from Chicago, syndicated radio talk show host Nancy Skinner.
Welcome to you both.
STEVE MALZBERG, CONSERVATIVE TALK SHOW HOST: Hi. How are you?
NANCY SKINNER, LIBERAL TALK SHOW HOST: Good morning, Carol.
COSTELLO: I'm fine. Good morning.
Let's start with the nasty anti-Kerry ad. It was made by a group of veterans who argue Kerry was no hero in Vietnam.
Let's listen.
(BEGIN VIDEO CLIP) SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: If you have any question about what John Kerry's made of, just spend three minutes with the men who served with him.
UNIDENTIFIED MALE: I served with John Kerry.
UNIDENTIFIED MALE: I served with John Kerry.
UNIDENTIFIED MALE: John Kerry has not been honest about what happened in Vietnam.
UNIDENTIFIED MALE: He is lying about his record.
UNIDENTIFIED MALE: I know John Kerry is lying about his first Purple Heart.
(END VIDEO CLIP)
COSTELLO: This ad was done by an independent group. Nancy, let's begin with you. Effective or unfair?
SKINNER: This is Karl Rove hatchet job. I have two words, Carol: Max Cleland. And this is what we've seen in past elections. We're seeing it again.
None of these guys served on the boat with John Kerry. In fact, one of them is now recounting. According to "The Boston Globe," he said he's sorry; he made a mistake in signing this affidavit. They are being paid by some mysterious Texas donor. Their book is being published by a right-wing group that publishes books from the NRA.
And how we are giving it the time of day when we saw who stood on that stage at the DNC Convention, but the people in the boat with John Kerry, the guy whose life he rescued.
So, I just -- we cannot let Karl Rove get away with this dirty trick.
COSTELLO: Steve is...
MALZBERG: Oh, my god!
SKINNER: John McCain has come out with the facts.
COSTELLO: Steve is laughing over there.
SKINNER: We can't let it happen!
COSTELLO: Let's let Steve answer.
MALZBERG: Nancy, Nancy, I love you. I love you, but you have gotten every Democratic talking point in. You even got Karl Rove in. Congratulations.
Look, this is legitimate. Of course, this is legitimate. Every commanding officer that John Kerry ever had has signed on to a letter from this group, saying that John Kerry is unfit to be commander-in- chief.
The book that's just coming out now has been researched. And Regnori (ph) is a legitimate publisher whether they publish right-wing books or not.
And the fact of the matter is Kerry has apparently been caught in a lie right now. He claims he was in Cambodia on Christmas Eve '68. He said so on the floor of the Senate. It's in the record. He said so in a piece in the "Boston Herald" in 1969.
Now, his staff yesterday backed away and said he was near Cambodia. But he made a point of saying he was illegally in Cambodia on two occasions. He's going to have to explain that.
These are veterans of Vietnam. They have a right to say what they want to say!
COSTELLO: OK, let's stop right there. Bill Clinton appeared on "The Daily Show with Jon Stewart" last night. Listen to what he had to say about this ad.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: They'll do this stuff as long they think it works.
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Now, do the Democrats...
CLINTON: They're running this ad against Kerry's military record.
STEWART: Right.
CLINTON: Because they think it's not good for them. I mean, Kerry went to Vietnam, and President Bush and Vice President Cheney, who were big hawks, were like me, we didn't go. All three of us could have gone, and we didn't and Kerry did.
So, it's not good for them, and so they're trying to put a chink in his armor. But it's wrong.
(END VIDEO CLIP)
COSTELLO: Nancy, could this ad be so negative it will backfire?
SKINNER: Absolutely, and I hope so. We saw this all during the last campaign. Do you remember the subliminal advertising, rats that they put in a TV commercial? I mean, these guys play dirty. And we cannot let it happen.
The American public has to realize, you know, what they're doing. Even John McCain stood up and said he's got a good record. Tommy Franks said John Kerry has a good record. They think it's terrible what's happening. And this is not how they want politics played out in America.
COSTELLO: Steve, your thoughts on that, because this ad is playing in swing states and playing a lot.
MALZBERG: Well, I think first of all people should be offended to what Bill Clinton just said, or by what Bill Clinton just said. He said it at the convention. He said it one time before. And now he said it last night.
He lumps himself, a draft dodger, lumps himself with the military service that President Bush provided for this country. The president went to the National Guard and Reserves. That's a very proud service. He was honorably discharged. Bill Clinton ran. He lumps himself with President Bush and Dick Cheney.
SKINNER: But...
MALZBERG: That's obscene, first of all.
SKINNER: Wait a minute. We do know -- I mean, he doesn't have records to prove that he served out his whole service.
MALZBERG: Oh, cut it out, Nancy!
SKINNER: He flunked his physical.
MALZBERG: Nancy!
SKINNER: I mean, there are lots of problems. And what about Dick Cheney, who had other priorities at the time?
MALZBERG: Nancy, nobody is saying that Dick Cheney served.
SKINNER: And didn't serve.
MALZBERG: That's not the point. The point is that there was an investigation into Bush the first time he ran for governor, the second time, in 2000, and again now.
COSTELLO: Well...
MALZBERG: Nobody has anything on George Bush. And, of course, it's fair to run this ad. These are the commanding officers, many of them, of John Kerry who all say -- what, are they all right-wing Republicans? Are they all being paid up under the table? Of course not.
SKINNER: They're not commanding officers, and they weren't in the boat.
COSTELLO: All right, all right, Nancy, you get the last word; then we have to wrap this debate up. So, Nancy, go ahead, last word for you.
SKINNER: They weren't commanding officers, and they weren't in the boat. And they're tied to a mysterious Texas donor. You have to take all of these facts into consideration. And Max Cleland! Just remember. What happened to Max Cleland? They're trying to do it again.
COSTELLO: All right, Steve Malzberg, Nancy Skinner, thank you both for a very spirited debate this morning. We certainly enjoyed it.
MALZBERG: Thank you.
SKINNER: Carol, thanks.
COSTELLO: I hope you'll come back. Thank you.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
Four of seven soldiers accused of abusing Iraqi prisoners are heading for Germany. The soldiers, including Specialist Charles Graner, will appear for their preliminary hearings August 23 in Germany.
A lapsed safety inspection is being blamed for a deadly accident at a Japanese nuclear plant. Four people were killed, seven suffered severe burns. Officials say non-radioactive steam leaked from a ruptured pipe.
In money news, it will likely cost you more to borrow money today. The fed is expected to raise interest rates by a quarter percentage point. The announcement comes at 2:15 Eastern.
In culture, a rare find for comedy film fans. A German-language film starring Laurel and Hardy was found in an archive in Moscow. The 40-minute movie first debuted at the Munich Film Festival in 1931. In Germany, Laurel and Hardy are known as Dick and Dorf (ph). And I won't tell you what that translates to in English, because -- anyway, it's just too mean.
In sports, welcome back, Joe Gibbs. The coach led his Washington Redskins to a 20-17 win in the seasons' first pre-season game. Gibbs is the second Hall of Famer to coach in the Hall of Fame game.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Let's head live to New York to check in with Bill and Heidi, who is in for Soledad today.
Good morning.
BILL HEMMER, CNN ANCHOR: Hello, Carol. How is your day going?
HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.
COSTELLO: After that spirited debate, I'm fully awake.
HEMMER: Yes, caffeine-injected, you're right. A lot more on these Vegas terror tapes. Did Vegas authorities know that al Qaeda was targeting casinos there, but not alert the public? We'll have a look at that this morning.
COLLINS: We also are going to be talking about the federal government and it taking over the screening at New York City heliports amid concerns now that helicopters could actually be used in terror attacks.
HEMMER: And the mayor had some strong words about that yesterday, too.
COLLINS: Yes.
HEMMER: Also from California, the Peterson trial. Scott Peterson's former mistress, Amber Frey, is expected to take the witness stand today. How important is her testimony? If she is the key witness, what will she provide in court? And ultimately, how long will she stay there?
COLLINS: Yes.
HEMMER: This could go two or three days, so we'll see...
COLLINS: Yes, the court has been out since Friday, too.
HEMMER: Yes.
Carol, there's a large emptiness here at "AMERICAN MORNING" this week, because Jack Cafferty is on vacation.
COSTELLO: Oh, I was -- you know, I was just...
HEMMER: Filling the hole...
COSTELLO: I was just reading a story on the Web about the largest hole in Croatia.
COLLINS: Yes, right. This is similar.
COSTELLO: It was kind of weird.
HEMMER: Andy Borowitz is here today, and, you know, Andy has always got something crazy up his sleeve. So, he'll be with us again for the show today.
COSTELLO: All right. Well, we can't wait. We'll see you in about 10 minutes.
HEMMER: Got it. Bye-bye.
COSTELLO: Thank you.
COLLINS: All right, Carol.
COSTELLO: It is time to check our "Web Clicks" this morning at CNN.com, because we're always interested in what you click onto. And the most popular story is that deepest hole in Croatia.
CHAD MYERS, CNN METEOROLOGIST: Now, they found it. It goes 1,700 feet straight down. And then it hits another couple of mines and goes left and right. But this vertical drop is the largest vertical drop they've ever found in any mine there, and obviously Croatia is kind of a rugged country.
COSTELLO: I just can't believe that story is generating that much interest. But it' a cool story.
MYERS: They found a leech down there that they've never seen before.
COSTELLO: Awesome. All right, the second most clicked-on story is al Qaeda and these computer disks.
MYERS: Right, right, yes.
COSTELLO: Thousands of computer disks were found, and the Americans and the British are going over them.
MYERS: Lots of data on those.
COSTELLO: And the third most clicked-on story, Tommy Franks apologizing for the president. He says it's his fault that the president declared "mission accomplished" on that aircraft carrier. A lot of people are interested in that. So...
MYERS: And there is also a Turkish hotel had an explosion overnight. That's the fourth story as well.
COSTELLO: Well, we've been reporting that all morning.
MYERS: Yes.
COSTELLO: That was the fourth clicked-on story.
MYERS: Yes.
COSTELLO: Explosions at Turkish hotels, two people died, seven injured.
What do you think? Do you want to see more coverage on a specific story? Are you peeved about something we've done? We want to know. Shoot us an e-mail, let it all out. The address: Daybreak@CNN.com.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: If I asked you to think of all of the places in the world, all of the hip places, Korea probably would not come to mind. But in Japan, Korea is all the rage.
Our Atika Shubert is here to tell us all about it. And, first of all, welcome to Atlanta, because you're usually in Tokyo.
ATIKA SHUBERT, CNN CORRESPONDENT: That's right. Thank you.
COSTELLO: So, thanks for joining DAYBREAK at this early hour.
Tell us why Japan thinks Korea is so cool.
SHUBERT: Well, first of all, it has to be said that ethnic Koreans have suffered a lot of discrimination in Japan for generations, many of them hiding their ethnic Korean names.
And what we found out, talking to people on the street, is that suddenly Korean pop culture is everywhere. You see it in soap operas, movies, music. And what we did was we talked to the younger generation and found that their attitudes were changing.
(BEGIN VIDEOTAPE)
SHUBERT (voice over): Japan's newest trend: studying Korean. Despite a history of war between two cultures, it's now hip to be Korean in Japan.
SHIGEMI KUDO, STUDENT (through translator): All of Koreans say Japan is a cruel country, although Japanese say Korea is an (UNINTELLIGIBLE) conquered nation. That's changing. We want and should know more about each other.
SHUBERT: The 2002 World Cup, co-hosted by Japan and South Korea, opened the door.
Now, when Korean pop idol, Peyu Juin (ph), visits, thousands of Japanese women stampede the airport. He stars in the Korean melodrama, "Winter Sonata," a smash hit with its soft-focused kisses.
What's behind the Korea craze? For some, the country next door is a nostalgic reminder of how Japan used to be.
MONA ISHIHARA, STUDENT (through translator): Korean pop culture reminds many Japanese of Japan as it was 20 years ago. I have a Korean boyfriend, and he respects women. Korean men are more gentle, kind and respectful than Japanese men.
SHUBERT: Or perhaps how Japan should be.
UNIDENTIFIED MALE (through translator): Koreans are blunt and straight-forward. I have learned that sometimes it is important to express my opinion, though sometimes they are too opinionated.
SHUBERT (on camera): Japanese and Koreans are actually a lot closer than they think. Ethnic Koreans have been living in Japan for generations, often hiding behind Japanese names for fear of discrimination.
(voice over): That is changing with the election of Bae Chin Kun last month, the first openly ethnic Korean member of Japan's parliament.
BAE CHIN KUN, UPPER HOUSE LAWMAKER (through translator): The reason why I fought this election with my Korean name was to tell people that times have changed. Koreans should be proud of themselves.
SHUBERT: And many Japanese have acquired a taste for Korean food, like kim (ph) cheese, spice pickled cabbage, and grilled beef. Over a few beers, straight-laced Japanese students loosen up to practice Korean speeches and a few songs, all part of making old rivals into good neighbors.
(END VIDEOTAPE)
COSTELLO: So good to hear.
SHUBERT: Yes, it's actually very encouraging. And the most particular encouraging aspect of this is not only pop culture, it's also getting into politics, and that politicians aren't afraid to say I am Korean and I'm running for office. And Japanese are voting for him.
COSTELLO: You know, I just read an article the other day about China and Japan and how increasingly they're becoming enemies.
SHUBERT: Yes, we've seen a lot of animosity, especially in sports. There has been the Asia Cup Soccer, and Japanese fans have been harassed in China where the tournament is taking place. And there is a lot of animosity there in Japan. It really has a lot of -- it has to secure its ties with its neighbors. It's not too popular all of the time because of its history in World War II.
COSTELLO: Well, thank you for bringing a bit of culture overseas to DAYBREAK, Atika Shubert. And have a nice vacation and a safe journey to Tokyo.
SHUBERT: Thank you.
COSTELLO: Today's mug winner announced in two minutes. This is DAYBREAK for a Tuesday morning.
(COMMERCIAL BREAK)
MYERS: It's time to give away a mug.
COSTELLO: I was reading e-mails.
MYERS: That's OK.
COSTELLO: Our viewers are sending great e-mails this morning. I can't stop reading them.
MYERS: It's all about the spam, exactly.
Yesterday we asked this: What is the latest national average for a gallon of gasoline, regular unleaded? That's a buck 87, although I paid $1.65 this morning. So, it seems to be coming down pretty.
COSTELLO: Good for you.
MYERS: And in what state did a private rocket launch fail? That was Washington state.
The winner, Bill Fleming from Corvallis, Montana. Wow!
COSTELLO: Congratulations, Bill.
MYERS: You should be sleeping!
And then the questions for today. What American city votes today to ban the circus animal acts? Not other things; just circus animal acts. And historians recently discovered a movie in Moscow featuring what famous film pair?
COSTELLO: Oh.
MYERS: We'll have the answer tomorrow.
COSTELLO: Daybreak@CNN.com. That does it for us. Daybreak@CNN.com.
"AMERICAN MORNING" starts right now. Thanks for being with us.
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Aired August 10, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And we've got a special programming note to tell you about. "LARRY KING LIVE," you'll want to catch it on Thursday night. The president and first lady will appear in a rare joint interview. "LARRY KING LIVE" airs at 9:00 Eastern, 6:00 Pacific Time.
All right, back to the election. Well, I guess that was part of the election as well. What does America think? Today, we look at the economy, the issues that get your vote, Catholic voters and the differences between men and women at the ballot box.
Live to Princeton, New Jersey, and Gallup Poll editor-in-chief Frank Newport.
Good morning, Frank.
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.
Indeed, all of the news coverage has been about -- and we've just been through it -- terrorism and then, of course, what's happening in Iraq. I say all of the news coverage, a lot of it. But I keep coming back when I study our data here at Gallup to the importance of the economy. You know, the fed may raise interest rates this week. We'll see what happens there.
Look at our latest numbers. Is the economy getting better or getting worse? And in July we had had up to 51 percent -- that's that green line there -- saying the economy is getting better. Actually that's come back down again. So Americans themselves are becoming a little more pessimistic. Only a 5-point gap now in our latest poll; 48 percent say it's getting better, 43 getting worse. Those aren't really robustly optimistic numbers.
Also, a "TIME" magazine poll that was released this weekend asked Americans which of these will be most important to your presidential vote? The same question we've asked off and on over the year. We gave them four or five choices, and look at the answer there. Was it Iraq, terrorism, moral issues? No. At the top of the list, 27 percent of Americans say it's the economy.
So, whatever these candidates propose to do about jobs and inflation and oil prices may be the key to the election -- Carol.
COSTELLO: You have some more numbers on Catholics, because they're an important voting block this coming election.
NEWPORT: Oh, indeed. One quarter of Americans are Catholics. They are important. Bush himself was out courting the Knights of Columbus a week or two ago. Remember that? Kerry himself is the first Catholic nominee since John F. Kennedy. Look at the numbers. This is quite fascinating.
Catholics tilt towards Kerry, but it really depends on whether you go to church. Practicing Catholics go to Bush. They seem to be more sympathetic to his moral issues. Very interesting numbers. If you're in the middle and kind of attend mass just semi-frequently you tilt to Kerry.
And look at this: 40 percent of all Catholics don't go to church, seldom or never do they go to church. And of that 40 percent, 57 percent support Kerry.
So, within the Catholic group, it really depends on whether you go to mass or not.
COSTELLO: Fascinating information. Thank you, Frank Newport, live in New Jersey on DAYBREAK this morning.
Police in New York, northern New Jersey and Washington are widening their security alert this morning. Bill Prasad in Washington with some new information for you.
(BEGIN VIDEOTAPE)
BILL PRASAD, CNN CORRESPONDENT (voice over): Outside the nation's capital, police now inspect some cars and trucks in nearby Virginia and Maryland before they enter the district, part of the orange alert of a terrorist threat to target financial buildings.
GEORGE BAURIES, FORMER FBI COUNTERTERRORISM: For every thousand leads that go out, you're probably going to get a good percentage that come back and warrant a much deeper investigation.
PRASAD: Now officials focus on what could be a new terrorist threat: helicopters. Photos could be taken of targets like the New York Stock Exchange. Sources say al Qaeda operatives were scouting New York heliports. One source saying they were testing security. There was a discussion about the relative ease in which weapons could be smuggled on board helicopters.
For the first time, officials will begin screening passengers at New York heliports.
MAYOR MICHAEL BLOOMBERG, NEW YORK: Using an aircraft as a weapon, whether it is a fixed-wing or a rotary aircraft, is nothing new.
PRASAD: In Las Vegas, a terrorist controversy. A year after September 11, federal officials obtained video surveillance tapes suggesting terrorists might target casinos. But the city's mayor is angry. He says he was never told of the tapes.
MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: If there's a tape that affects our security, I would expect that they would make it available to me immediately.
PRASAD (on camera): The FBI says it did show the tape to some Nevada law enforcement officials. In the meantime, the Department of Homeland Security says even though Las Vegas is a known terrorist target, there is no imminent threat to the city.
In Washington, I'm Bill Prasad.
(END VIDEOTAPE)
COSTELLO: Thanks, Bill.
From you're fired to you're broke. Donald Trump's real estate fortune, well, it isn't so fortunate. That's ahead in our business buzz at 6:40 Eastern.
Then today's hot talker at 6:40 Eastern, this ad attacks John Kerry's war record. It is really nasty. But will it resonate in the battleground states? A look from the left and from the right.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: U.S. stocks will open flat this morning as investors are a little uncertain about today's expected interest rate hike. The Dow closed just above 9814. The Nasdaq down two and a quarter points to close, oh, at about 1775. The S&P 500 ended at 1065.
It's time for a little business buzz right now. From you're fired to you're broke. Millionaire Donald Trump's hotel business could be on the verge of going bust.
Live to the Nasdaq Marketsite and Carrie Lee.
I'm just shocked because of the recent hit show.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: You know, it's amazing, because "The Apprentice," his reality show, has been very successful. But Trump Hotel and Casino Resorts are a little bit of a different story here, Carol.
Key bondholders have agreed to take the company into voluntary bankruptcy and restructure its $1.8 billion in debt to get 400 million (AUDIO GAP). If this deal goes through, Donald Trump will cut his controlling stake to 25 percent. He will remain chairman of the company.
Now, Trump Casino and Hotel and Casino Resorts own four casinos, including the Taj Mahal in Atlantic City. And it's come close to defaulting on interest payments in the process, although it hasn't threatened the developer's non-casino real estate projects.
Again, if this deal goes through, stockholders will have the right to buy new shares in rights offerings, although some might say that that would be a gamble.
Carol -- back to you.
COSTELLO: Doesn't he have a new show this coming season?
LEE: I think he does have a new show, right, the second installment of "The Apprentice," if I'm correct here?
COSTELLO: Maybe he should, like, try out new executives to get his company...
LEE: Issue an IPO for a reality show, there you go. That's a new concept (UNINTELLIGIBLE).
COSTELLO: Oh, that's cruel. We shouldn't do that.
A quick look at the futures.
LEE: Yes. Stocks are looking like they could open modestly higher right now. But, of course, all eyes are going to be on the feds, seeing what they decide to do on interest rates at 2:15 Eastern today. Wall Street is widely expecting a quarter-point hike, although continued hikes are a little bit more of a question now we got that weak jobs report.
Cisco Systems is coming out after the close of trading. Wall Street is looking for 20 cents a share versus 15 on the bottom line, sales of about 5.9 billion in profits.
Carol, they're probably going to have to beat those expectations, though, as they have in the past to satisfy Wall Street.
COSTELLO: All right, Carrie Lee live from the Nasdaq Marketsite. Many thanks to you.
The hot talker this morning: election 2004. It's getting a little nastier and more interesting.
This morning's debate, on the right from ABC Radio in New York, talk show host Steve Malzberg, and on the left from Chicago, syndicated radio talk show host Nancy Skinner.
Welcome to you both.
STEVE MALZBERG, CONSERVATIVE TALK SHOW HOST: Hi. How are you?
NANCY SKINNER, LIBERAL TALK SHOW HOST: Good morning, Carol.
COSTELLO: I'm fine. Good morning.
Let's start with the nasty anti-Kerry ad. It was made by a group of veterans who argue Kerry was no hero in Vietnam.
Let's listen.
(BEGIN VIDEO CLIP) SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: If you have any question about what John Kerry's made of, just spend three minutes with the men who served with him.
UNIDENTIFIED MALE: I served with John Kerry.
UNIDENTIFIED MALE: I served with John Kerry.
UNIDENTIFIED MALE: John Kerry has not been honest about what happened in Vietnam.
UNIDENTIFIED MALE: He is lying about his record.
UNIDENTIFIED MALE: I know John Kerry is lying about his first Purple Heart.
(END VIDEO CLIP)
COSTELLO: This ad was done by an independent group. Nancy, let's begin with you. Effective or unfair?
SKINNER: This is Karl Rove hatchet job. I have two words, Carol: Max Cleland. And this is what we've seen in past elections. We're seeing it again.
None of these guys served on the boat with John Kerry. In fact, one of them is now recounting. According to "The Boston Globe," he said he's sorry; he made a mistake in signing this affidavit. They are being paid by some mysterious Texas donor. Their book is being published by a right-wing group that publishes books from the NRA.
And how we are giving it the time of day when we saw who stood on that stage at the DNC Convention, but the people in the boat with John Kerry, the guy whose life he rescued.
So, I just -- we cannot let Karl Rove get away with this dirty trick.
COSTELLO: Steve is...
MALZBERG: Oh, my god!
SKINNER: John McCain has come out with the facts.
COSTELLO: Steve is laughing over there.
SKINNER: We can't let it happen!
COSTELLO: Let's let Steve answer.
MALZBERG: Nancy, Nancy, I love you. I love you, but you have gotten every Democratic talking point in. You even got Karl Rove in. Congratulations.
Look, this is legitimate. Of course, this is legitimate. Every commanding officer that John Kerry ever had has signed on to a letter from this group, saying that John Kerry is unfit to be commander-in- chief.
The book that's just coming out now has been researched. And Regnori (ph) is a legitimate publisher whether they publish right-wing books or not.
And the fact of the matter is Kerry has apparently been caught in a lie right now. He claims he was in Cambodia on Christmas Eve '68. He said so on the floor of the Senate. It's in the record. He said so in a piece in the "Boston Herald" in 1969.
Now, his staff yesterday backed away and said he was near Cambodia. But he made a point of saying he was illegally in Cambodia on two occasions. He's going to have to explain that.
These are veterans of Vietnam. They have a right to say what they want to say!
COSTELLO: OK, let's stop right there. Bill Clinton appeared on "The Daily Show with Jon Stewart" last night. Listen to what he had to say about this ad.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: They'll do this stuff as long they think it works.
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Now, do the Democrats...
CLINTON: They're running this ad against Kerry's military record.
STEWART: Right.
CLINTON: Because they think it's not good for them. I mean, Kerry went to Vietnam, and President Bush and Vice President Cheney, who were big hawks, were like me, we didn't go. All three of us could have gone, and we didn't and Kerry did.
So, it's not good for them, and so they're trying to put a chink in his armor. But it's wrong.
(END VIDEO CLIP)
COSTELLO: Nancy, could this ad be so negative it will backfire?
SKINNER: Absolutely, and I hope so. We saw this all during the last campaign. Do you remember the subliminal advertising, rats that they put in a TV commercial? I mean, these guys play dirty. And we cannot let it happen.
The American public has to realize, you know, what they're doing. Even John McCain stood up and said he's got a good record. Tommy Franks said John Kerry has a good record. They think it's terrible what's happening. And this is not how they want politics played out in America.
COSTELLO: Steve, your thoughts on that, because this ad is playing in swing states and playing a lot.
MALZBERG: Well, I think first of all people should be offended to what Bill Clinton just said, or by what Bill Clinton just said. He said it at the convention. He said it one time before. And now he said it last night.
He lumps himself, a draft dodger, lumps himself with the military service that President Bush provided for this country. The president went to the National Guard and Reserves. That's a very proud service. He was honorably discharged. Bill Clinton ran. He lumps himself with President Bush and Dick Cheney.
SKINNER: But...
MALZBERG: That's obscene, first of all.
SKINNER: Wait a minute. We do know -- I mean, he doesn't have records to prove that he served out his whole service.
MALZBERG: Oh, cut it out, Nancy!
SKINNER: He flunked his physical.
MALZBERG: Nancy!
SKINNER: I mean, there are lots of problems. And what about Dick Cheney, who had other priorities at the time?
MALZBERG: Nancy, nobody is saying that Dick Cheney served.
SKINNER: And didn't serve.
MALZBERG: That's not the point. The point is that there was an investigation into Bush the first time he ran for governor, the second time, in 2000, and again now.
COSTELLO: Well...
MALZBERG: Nobody has anything on George Bush. And, of course, it's fair to run this ad. These are the commanding officers, many of them, of John Kerry who all say -- what, are they all right-wing Republicans? Are they all being paid up under the table? Of course not.
SKINNER: They're not commanding officers, and they weren't in the boat.
COSTELLO: All right, all right, Nancy, you get the last word; then we have to wrap this debate up. So, Nancy, go ahead, last word for you.
SKINNER: They weren't commanding officers, and they weren't in the boat. And they're tied to a mysterious Texas donor. You have to take all of these facts into consideration. And Max Cleland! Just remember. What happened to Max Cleland? They're trying to do it again.
COSTELLO: All right, Steve Malzberg, Nancy Skinner, thank you both for a very spirited debate this morning. We certainly enjoyed it.
MALZBERG: Thank you.
SKINNER: Carol, thanks.
COSTELLO: I hope you'll come back. Thank you.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
Four of seven soldiers accused of abusing Iraqi prisoners are heading for Germany. The soldiers, including Specialist Charles Graner, will appear for their preliminary hearings August 23 in Germany.
A lapsed safety inspection is being blamed for a deadly accident at a Japanese nuclear plant. Four people were killed, seven suffered severe burns. Officials say non-radioactive steam leaked from a ruptured pipe.
In money news, it will likely cost you more to borrow money today. The fed is expected to raise interest rates by a quarter percentage point. The announcement comes at 2:15 Eastern.
In culture, a rare find for comedy film fans. A German-language film starring Laurel and Hardy was found in an archive in Moscow. The 40-minute movie first debuted at the Munich Film Festival in 1931. In Germany, Laurel and Hardy are known as Dick and Dorf (ph). And I won't tell you what that translates to in English, because -- anyway, it's just too mean.
In sports, welcome back, Joe Gibbs. The coach led his Washington Redskins to a 20-17 win in the seasons' first pre-season game. Gibbs is the second Hall of Famer to coach in the Hall of Fame game.
(WEATHER BREAK)
COSTELLO: Those are the latest headlines for you this morning.
Let's head live to New York to check in with Bill and Heidi, who is in for Soledad today.
Good morning.
BILL HEMMER, CNN ANCHOR: Hello, Carol. How is your day going?
HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.
COSTELLO: After that spirited debate, I'm fully awake.
HEMMER: Yes, caffeine-injected, you're right. A lot more on these Vegas terror tapes. Did Vegas authorities know that al Qaeda was targeting casinos there, but not alert the public? We'll have a look at that this morning.
COLLINS: We also are going to be talking about the federal government and it taking over the screening at New York City heliports amid concerns now that helicopters could actually be used in terror attacks.
HEMMER: And the mayor had some strong words about that yesterday, too.
COLLINS: Yes.
HEMMER: Also from California, the Peterson trial. Scott Peterson's former mistress, Amber Frey, is expected to take the witness stand today. How important is her testimony? If she is the key witness, what will she provide in court? And ultimately, how long will she stay there?
COLLINS: Yes.
HEMMER: This could go two or three days, so we'll see...
COLLINS: Yes, the court has been out since Friday, too.
HEMMER: Yes.
Carol, there's a large emptiness here at "AMERICAN MORNING" this week, because Jack Cafferty is on vacation.
COSTELLO: Oh, I was -- you know, I was just...
HEMMER: Filling the hole...
COSTELLO: I was just reading a story on the Web about the largest hole in Croatia.
COLLINS: Yes, right. This is similar.
COSTELLO: It was kind of weird.
HEMMER: Andy Borowitz is here today, and, you know, Andy has always got something crazy up his sleeve. So, he'll be with us again for the show today.
COSTELLO: All right. Well, we can't wait. We'll see you in about 10 minutes.
HEMMER: Got it. Bye-bye.
COSTELLO: Thank you.
COLLINS: All right, Carol.
COSTELLO: It is time to check our "Web Clicks" this morning at CNN.com, because we're always interested in what you click onto. And the most popular story is that deepest hole in Croatia.
CHAD MYERS, CNN METEOROLOGIST: Now, they found it. It goes 1,700 feet straight down. And then it hits another couple of mines and goes left and right. But this vertical drop is the largest vertical drop they've ever found in any mine there, and obviously Croatia is kind of a rugged country.
COSTELLO: I just can't believe that story is generating that much interest. But it' a cool story.
MYERS: They found a leech down there that they've never seen before.
COSTELLO: Awesome. All right, the second most clicked-on story is al Qaeda and these computer disks.
MYERS: Right, right, yes.
COSTELLO: Thousands of computer disks were found, and the Americans and the British are going over them.
MYERS: Lots of data on those.
COSTELLO: And the third most clicked-on story, Tommy Franks apologizing for the president. He says it's his fault that the president declared "mission accomplished" on that aircraft carrier. A lot of people are interested in that. So...
MYERS: And there is also a Turkish hotel had an explosion overnight. That's the fourth story as well.
COSTELLO: Well, we've been reporting that all morning.
MYERS: Yes.
COSTELLO: That was the fourth clicked-on story.
MYERS: Yes.
COSTELLO: Explosions at Turkish hotels, two people died, seven injured.
What do you think? Do you want to see more coverage on a specific story? Are you peeved about something we've done? We want to know. Shoot us an e-mail, let it all out. The address: Daybreak@CNN.com.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: If I asked you to think of all of the places in the world, all of the hip places, Korea probably would not come to mind. But in Japan, Korea is all the rage.
Our Atika Shubert is here to tell us all about it. And, first of all, welcome to Atlanta, because you're usually in Tokyo.
ATIKA SHUBERT, CNN CORRESPONDENT: That's right. Thank you.
COSTELLO: So, thanks for joining DAYBREAK at this early hour.
Tell us why Japan thinks Korea is so cool.
SHUBERT: Well, first of all, it has to be said that ethnic Koreans have suffered a lot of discrimination in Japan for generations, many of them hiding their ethnic Korean names.
And what we found out, talking to people on the street, is that suddenly Korean pop culture is everywhere. You see it in soap operas, movies, music. And what we did was we talked to the younger generation and found that their attitudes were changing.
(BEGIN VIDEOTAPE)
SHUBERT (voice over): Japan's newest trend: studying Korean. Despite a history of war between two cultures, it's now hip to be Korean in Japan.
SHIGEMI KUDO, STUDENT (through translator): All of Koreans say Japan is a cruel country, although Japanese say Korea is an (UNINTELLIGIBLE) conquered nation. That's changing. We want and should know more about each other.
SHUBERT: The 2002 World Cup, co-hosted by Japan and South Korea, opened the door.
Now, when Korean pop idol, Peyu Juin (ph), visits, thousands of Japanese women stampede the airport. He stars in the Korean melodrama, "Winter Sonata," a smash hit with its soft-focused kisses.
What's behind the Korea craze? For some, the country next door is a nostalgic reminder of how Japan used to be.
MONA ISHIHARA, STUDENT (through translator): Korean pop culture reminds many Japanese of Japan as it was 20 years ago. I have a Korean boyfriend, and he respects women. Korean men are more gentle, kind and respectful than Japanese men.
SHUBERT: Or perhaps how Japan should be.
UNIDENTIFIED MALE (through translator): Koreans are blunt and straight-forward. I have learned that sometimes it is important to express my opinion, though sometimes they are too opinionated.
SHUBERT (on camera): Japanese and Koreans are actually a lot closer than they think. Ethnic Koreans have been living in Japan for generations, often hiding behind Japanese names for fear of discrimination.
(voice over): That is changing with the election of Bae Chin Kun last month, the first openly ethnic Korean member of Japan's parliament.
BAE CHIN KUN, UPPER HOUSE LAWMAKER (through translator): The reason why I fought this election with my Korean name was to tell people that times have changed. Koreans should be proud of themselves.
SHUBERT: And many Japanese have acquired a taste for Korean food, like kim (ph) cheese, spice pickled cabbage, and grilled beef. Over a few beers, straight-laced Japanese students loosen up to practice Korean speeches and a few songs, all part of making old rivals into good neighbors.
(END VIDEOTAPE)
COSTELLO: So good to hear.
SHUBERT: Yes, it's actually very encouraging. And the most particular encouraging aspect of this is not only pop culture, it's also getting into politics, and that politicians aren't afraid to say I am Korean and I'm running for office. And Japanese are voting for him.
COSTELLO: You know, I just read an article the other day about China and Japan and how increasingly they're becoming enemies.
SHUBERT: Yes, we've seen a lot of animosity, especially in sports. There has been the Asia Cup Soccer, and Japanese fans have been harassed in China where the tournament is taking place. And there is a lot of animosity there in Japan. It really has a lot of -- it has to secure its ties with its neighbors. It's not too popular all of the time because of its history in World War II.
COSTELLO: Well, thank you for bringing a bit of culture overseas to DAYBREAK, Atika Shubert. And have a nice vacation and a safe journey to Tokyo.
SHUBERT: Thank you.
COSTELLO: Today's mug winner announced in two minutes. This is DAYBREAK for a Tuesday morning.
(COMMERCIAL BREAK)
MYERS: It's time to give away a mug.
COSTELLO: I was reading e-mails.
MYERS: That's OK.
COSTELLO: Our viewers are sending great e-mails this morning. I can't stop reading them.
MYERS: It's all about the spam, exactly.
Yesterday we asked this: What is the latest national average for a gallon of gasoline, regular unleaded? That's a buck 87, although I paid $1.65 this morning. So, it seems to be coming down pretty.
COSTELLO: Good for you.
MYERS: And in what state did a private rocket launch fail? That was Washington state.
The winner, Bill Fleming from Corvallis, Montana. Wow!
COSTELLO: Congratulations, Bill.
MYERS: You should be sleeping!
And then the questions for today. What American city votes today to ban the circus animal acts? Not other things; just circus animal acts. And historians recently discovered a movie in Moscow featuring what famous film pair?
COSTELLO: Oh.
MYERS: We'll have the answer tomorrow.
COSTELLO: Daybreak@CNN.com. That does it for us. Daybreak@CNN.com.
"AMERICAN MORNING" starts right now. Thanks for being with us.
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