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CNN Live At Daybreak
Ex-Enron Executive's Fraud Trial Set to Begin Today; Political Hot Topics
Aired September 20, 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.
BETTY NGUYEN, CNN ANCHOR: Well, good morning to you on this Monday from the CNN global headquarters here in Atlanta. I'm Betty Nguyen in for Carol Costello.
Now in the news, Tropical Storm Jeanne is heading north through the Caribbean, leaving 54 people dead and 150 unaccounted for in Haiti. Most of those Haitians died in floods and mudslides.
There are conflicting reports about President Bush and John Kerry debating. A source familiar with the negotiations tells the Associated Press details of a deal on three presidential debates are still being worked out. But a Bush campaign spokeswoman says there is no deal and it hasn't been reached just yet.
Another hearing this morning for Congressman Porter Goss. The Senate Select Committee on Intelligence holds its second hearing on President Bush's nomination of Goss to be CIA director.
An administration official says President Bush will lift sanctions against Libya and could make that announcement today. The move could bring more than $1 billion in payments to families of Pan Am Flight 103 victims.
(WEATHER BREAK)
NGUYEN: Almost three years after Enron's collapse, the first criminal trial of former Enron executives is set to begin today.
Carrie Lee has that story, and she's now at the Nasdaq Marketsite in Times Square with the latest.
Hi there -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Betty.
Well, the focus of this trial is a single alleged sham transaction involving Merrill Lynch that closed almost two years before Enron collapsed into bankruptcy. Six defendants here: four former Merrill Lynch executives, two former mid-level Enron executives. They're charged with conspiracy and fraud, and they're accused of helping push through the sale of several electricity- producing Nigerian barges.
Now, prosecutors say they knew this sale was not legitimate, because Enron had secretly promised to buy back the barges.
Now, Merrill Lynch as the corporation avoided prosecution a year ago, acknowledging some of its employees may have broken the law.
The bottom line: this case could shed light on how prosecutors are going to pursue cases against Enron's higher-ups. Remember the fate of former Enron CEOs Ken Lay and Jeff Skilling has yet to be determined. Their trial dates haven't been set. Skilling has pleaded not guilty. Ken Lay has denied wrongdoing.
So, that's the latest getting started today -- Betty.
NGUYEN: All right, speaking of shedding some light, how are futures doing today?
LEE: The futures are looking pretty weak. We have oil prices on the rise early this morning. That's weighing on things. We have a big Fed meeting tomorrow to see whether the Fed decides, once again, to raise interest rates. It's widely expected they will do so by a quarter-point.
Nike is also reporting profits later this morning, expected to earn $1.11 a share for the recent quarter.
NGUYEN: Carrie Lee, thank you.
It won't be long now, just 43 days until the presidential election, and here is the latest campaign news.
There are reports of a tentative deal between the Bush and Kerry campaigns on the presidential debates. The opening debate would be on September 30 in Coral Gables, Florida, on foreign policy. Now, on October 8, Bush and Kerry would take questions from undecided voters in St. Louis. And the final session, October 13 in Tempe, Arizona, that will center on domestic issues. But none of this is set in stone just yet.
In the meantime, both candidates are stepping up their rhetoric today. John Kerry delivers a major address this morning in New York City. The topic? Post-war Iraq. We'll have live coverage at 10:00 a.m. Eastern. Also, a Kerry ad that starts airing today links the cost of Iraq with problems back here at home.
And President Bush plans to fire back at his Democratic rival. The president is flying from Washington to New Hampshire, where he is expected to step up his criticism of Kerry's Iraq policy. He'll then fly to New York City ahead of a speech to the U.N. General Assembly. And CNN, of course, will have live coverage of the president's speech. That is at 10:30 a.m. Eastern tomorrow.
Well, you know it's an election season when the topic is terrorism and the rhetoric is flying thick and fast. House Speaker Dennis Hastert's claim that al Qaeda would operate better with John Kerry in the White House got a whole lot of talk started over the weekend. But Kerry's running mate isn't having any of it.
(BEGIN VIDEO CLIP)
REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: I think you'll see al Qaeda trying to influence this election. And if they can't influence here, they're going to try to influence in Iraq. And you'll see, I think, a blitz. I wouldn't be surprised to even see a blitz in Afghanistan as well.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: He said -- and I'm paraphrasing it now -- he said last night something to the effect that al Qaeda wants John Kerry to be president of the United States. Let me just say this in the simplest possible terms: When John Kerry is president of the United States, we will find al Qaeda where they are and crush them before they can do damage to the American people.
(END VIDEO CLIP)
NGUYEN: Neither the Bush campaign nor the White House has offered any comment on this controversy.
With the election only six weeks away -- can you believe it's just six weeks -- the war of words is heating up.
Vaught Ververs, editor of "The Hotline," joins us now by phone to talk about today's political hot topics.
And good morning to you.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning.
NGUYEN: Well, we can't leave you without talking, of course, about Dennis Hastert and him raising some eyebrows with those words that he mentioned over the weekend. This fear factor, I guess some would call it, does that work in political elections?
VERVERS: Well, you know, this is certainly a role that Dennis Hastert has stepped up to and really warmed up to over the last couple of weeks. He's been making some charges about George Soros, who is a major Democratic donor. Now, we've got this. So, he's really taking on the role of attack dog.
Do you know what? The administration has -- we've seen this out of them before. The vice president has made some pretty controversial comments on this topic. And basically that's the Bush campaign's argument is that they are better prepared to keep America safer, both here and abroad, than John Kerry is.
Now, the Democrats will tell you that they believe that that kind of rhetoric that the speaker used really crosses the line. And you saw John Edwards coming out very forcefully and defending that. And that's part of what John Edwards' role has been lately has sort of been the defense against that.
So, we saw the dynamic play out yesterday that we've sort of seen over the past few weeks. NGUYEN: Now, you mentioned John Edwards' role, but he's been taking some heat lately for not being as much of an attack dog as maybe he should be this time of year.
VERVERS: Yes, there are a lot of people who observe campaigns maybe not directly connected to either one of them, especially on the Democratic side, feel that Edwards that Edwards has been a little bit of a disappointment. They'd like to see him out there taking on the role of attack dog, really going out there and taking it to the administration.
We've seen John Kerry do that far more than John Edwards. But then again Edwards' defenders will tell you that the reason he was picked to be on this ticket was because of his optimistic nature, because of his sunny disposition. He made a point during the primaries of not being negative. And for him to turn around and do that would be very out of character and not really the reason they put him on the ticket.
NGUYEN: We want to move now to CBS and what's becoming a bit of a memo-gate there. CBS may make a statement today. Is this network in some hot water?
VERVERS: Well, I think that they're not in real hot water. This is definitely an embarrassment to the network. It's got a long history of being the Tiffany network of television news; Walter Cronkite, of course.
So, you know, this isn't going to be a fatal blow at all, but it's a severe embarrassment for the network and for Dan Rather. It confirms what a lot of Republicans think about him, that's he's got an agenda. This really will help solidify that in their mind.
But, you know, CBS will continue to go on. What it really does is it takes the focus off of the issue at hand. It pretty much is going to put a rest, I think, to this debate over the president's Guard service, at least for the next week, because all we've been doing is talking about the network and these documents and not some of the other stuff that's been charged.
So, in that sense, it's been very good for President Bush.
NGUYEN: Exactly. Quickly, though, will it lead to an internal investigation, maybe even some charges?
VERVERS: You will definitely see an internal investigation. I think you may see some people at least suspended, put on leave, if not fired for this. I think the prevailing view is that somebody's head is going to have to roll within CBS over this, and it's just a matter of if it's going to be a producer or somebody higher up.
NGUYEN: We'll continue to watch. Vaughn Ververs with "The Hotline," thanks for joining us.
VERVERS: You bet. Thanks. NGUYEN: News around the world now. In Indonesia, the world's most populous Muslim nation, a change may be brewing. Early results are in this morning from the country's first direct presidential election, and the numbers show the challenger is leading the incumbent. Final results are due early next month.
In southern Turkey, no claim of responsibility yet for a bombing attack near an outdoor concert last night. Turkey's official news agency says 14 people were hurt in that explosion. The bomb was planted in a police car.
And Israel launches another target killing -- targeted killing, I should say, in Gaza. Israeli military officials say an airstrike on a car in Gaza City killed a Hamas field commander. That man was suspected of being involved in rocket attacks on southern Israel.
The FBI says mortgage fraud is running rampant across the country. Ahead, we'll explain why the FBI thinks there is an increase in fraud in the housing industry.
But first, here's a look at what else is making news on this Monday morning.
(COMMERCIAL BREAK)
NGUYEN: Your news, money, weather and sports. The time right now is 6:45 Eastern. Here's what's all new this morning.
Reports today of a tentative agreement for Senator John Kerry and President Bush to debate. The reports say the two will hold three debates, but details, well, they're still being worked out.
Photographer Eddie Adams is dead of Lou Gehrig's disease at age 71. He won the Pulitzer Prize for this 1968 photo of a communist guerilla being executed in Saigon. Maybe we'll get you that picture. It happened during the Vietnam War. That's not the picture.
But in money, a decision by the Russian oil firm, Yukos, to suspend oil experts to China is impacting the global market. It's fueled another increase. Oil prices rose today above $46 a barrel.
In culture, oops, she did it again, another surprise wedding for Britney Spears, No. 2. The pop star married fiance Kevin Federline over the weekend, and the couple had originally announced plans for a November wedding. It was kind of a big surprise, at least to the media.
In sports, the Cincinnati Bengals won and won ugly over the Miami Dolphins 16-13. The Bengals held the Dolphins to just 25 yards rushing and forced three turnovers to notch their first win of the season.
(WEATHER BREAK)
NGUYEN: The international markets are starting the week off in negative territory. Tokyo's Nikkei is down nearly 57 points. The London Market is trading down around 11 points. And in Paris, the markets are also down, around 17 and a half points.
But it's great to take advantage of low interest rates. Beware, though, of mortgage fraud.
Carrie Lee has this story, and she's at the Nasdaq Marketsite.
Good morning to you.
LEE: Hi, Betty.
Well, the FBI is saying there are about three times the levels of suspicious activity involving mortgages than there were in 2001. The FBI currently has 533 pending mortgage fraud investigations compared with 102 in 2001.
A couple of reasons: They say the lending and refinancing boom that accompanied low interest rates in the past couple of years is a key reason. And the FBI has also identified a couple of hot spots around the country, where fraud is especially prevalent. And that includes -- they include Florida, California, Nevada, Michigan, Missouri and Illinois.
A couple of different scams going on here: fake identities and credit histories; also appraising properties at artificially high levels, basically making a buyer pay or encouraging a buyer to pay more than the property is actually worth.
So, people should be aware of these practices if you're going to buy or refinance a home.
Quickly, one stock we're watching today, Lennar, is a big homebuilder. The company just reported a 12 percent increase in quarterly profits for the recent quarter. We'll be keeping an eye on that stock.
Overall, though, those high oil prices are weighing on stocks this morning. It looks like we could see some selling at the 9:30 opening bell.
Betty -- back to you.
NGUYEN: And so, what does that mean for futures right now?
LEE: Yes, futures are looking weak. It looks like oil is certainly part of the reason. We also have that big Fed meeting tomorrow. So, some people may be waiting on the sidelines to see what Alan Greenspan and company do involving interest rates. A lot of people are expecting a quarter-point hike tomorrow.
NGUYEN: All right, Carrie Lee, thanks so much.
Well, it was a busy NFL weekend. CNN's sports contributor Chris Cotter joins us next with a roundup of the gridiron winners and losers.
(COMMERCIAL BREAK) NGUYEN: It's time now to talk sports. And it was an important weekend in the NFL for two of the games' premier quarterbacks.
Joining us to talk about all of this football, among other things, is CNN's sports contributor Chris Cotter.
Good morning to you.
CHAD MYERS, CNN METEOROLOGIST: Who is that? Vinny Testaverde she's talking about?
CHRIS COTTER, CNN SPORTS CONTRIBUTOR: I think that's not one of the teams.
MYERS: Oh!
COTTER: Yes, (UNINTELLIGIBLE). If you get a win, though, that's all that really matters.
NGUYEN: Right, exactly, a win.
COTTER: He did not have a good game. But, yes, week two now, we're starting to see some trends.
And one thing that -- a trend we haven't seen is the Colts going 0-2. So, Peyton Manning going against Steve McNair, the big game of the day -- this is probably the game of the day. And actually it started out really bad for the Colts and really good for the Tennessee Titans. Here's Chris Brown going in for a score, a running back out of Colorado. And this gives Tennessee the early lead.
And it was not looking good for the Colts until the second half, and that's when Peyton Manning, and Edgerrin James especially really took over, Edgerrin James over 100 yards in the second half alone in this game. And ultimately, it propelled the Colts to the win. Here you see him going off on the left side here in the second half, taking it in for the score, about 40 yards here. This was really the backbreaker for the Colts as they get the win.
They improved to 1-1 on the season, and the Titans dropped to 1-1 as well.
NGUYEN: And that's just one of the many games that were played yesterday.
COTTER: The Falcons, too, when you talk about premier quarterbacks...
MYERS: How many yards did he run for, Michael Vick? It had to be over 100 yards.
COTTER: A hundred and nine yards for Michael Vick.
NGUYEN: A hundred and nine?
MYERS: Wow! COTTER: And, you know, the record for 100-yard games for a quarterback is four, and he has three in his career. So, he's just one away in his young career. And look at him going around left side here. Look at that right there with the flip. He almost gets into the end zone, does not quite.
MYERS: I know. I saw that, and I went, 'Oh, he's hurt again!'
NGUYEN: Ouch!
MYERS: But, no, he got up.
COTTER: But how dynamic is he?
MYERS: Yes.
COTTER: I mean, here's the catch by Alge Crumpler down the left side. He passed for 175 yards, ran for 109 yards. He's unstoppable.
NGUYEN: He's on fire. All right, but there was an upset, wasn't there?
COTTER: There was a big upset. By the way, the Bears and Packers, this is a situation where the Bears' longtime rivalries playing in -- what was it? The black and blue division of the NFC. And the Bears hadn't beaten the Packers at Lambeau Field in a long time. But today -- or yesterday, rather, 21-10, the Bears with the win, and it's surprising the fact that the Bears looked so bad in week one and the Packers looked impressive.
Here is Mike Brown, by the way, picking up a fumble on his own 5- yard line and going...
MYERS: Fumbling and stumbling!
COTTER: Ninety-five yards. Now that's a defensive back.
NGUYEN: (UNINTELLIGIBLE) there.
MYERS: Right.
COTTER: If that was a lineman, he'd have gone about 45 yards and had been caught by another lineman.
NGUYEN: I'm impressed.
COTTER: That would have been more fun to watch. But Mike Brown getting a touchdown for the Bears, and then finally another interception for Brett Favre, unlikely, a difficult day for him and a strange day for the home opener for them, but the Bears get the win 21-10.
NGUYEN: All right, as a Cowboy fan, we are always watching those Redskins. How did they fare?
COTTER: The Redskins were impressive in week one; not so yesterday.
NGUYEN: Oh, OK.
COTTER: And seven turnovers, the Bears -- the Giants, rather, caused seven turnovers, and Kurt Warner just had a miserable day, sort of hearkening back to his final few days with the Rams.
MYERS: Don't you think Coach Gibbs wishes he was racing a car?
COTTER: I mean, well, he's 1-1, and Clinton Portis here with the fumble. He had a huge week in week one; not so here, as Barrett Green picks up the fumble and returns it for a touchdown. Again, four fumbles, three interceptions for the Redskins.
NGUYEN: What a bad day!
MYERS: Oh!
COTTER: Here's another sad one. Now, here's rumbling, bumbling and stumbling.
NGUYEN: That's the definition right there.
COTTER: That's hands for a defensive lineman. One final interception in the end zone, and, see, this is what happens when you have a day like this.
MYERS: Yes.
COTTER: He's saying, one final interception, one final interception, finally there it is.
NGUYEN: They got it.
MYERS: Time to go, bud.
NGUYEN: All, we are out of time. Thanks so much, Chris Cotter. It's always fun.
COTTER: You're very welcome.
NGUYEN: You guys should hang out on the weekends and watch football with your big HDTVs. That's all you do, right?
COTTER: It was so nice this past weekend.
(CROSSTALK)
NGUYEN: All right, we've got the DAYBREAK coffee mug quiz in about two minutes, but first this is DAYBREAK for Monday.
(COMMERCIAL BREAK)
MYERS: Anyway, it's time to give away a coffee -- we haven't been able to do this for a while. We've been so, so busy with these hurricanes. Now, we can give away a CNN DAYBREAK mug. Here are your questions for today: How many times had Sarah Jessica Parker been nominated for lead actress in a comedy series before winning last night? And name at least one state in which the presidential debates are tentatively set to take place? Just give me one state. There's just going to be a couple of these things, so all you need to know is one state.
We will name the winner tomorrow. CNN -- the way you get to us. Don't go on to CNN.com. Go to Daybreak@CNN.com.
NGUYEN: DAYBREAK.
MYERS: And just e-mail it to us directly. If you start clicking around on CNN.com looking for our link, you won't find one, because we're early and...
NGUYEN: We're special.
MYERS: Yes. Well, not really.
NGUYEN: Well, different.
Well, that does it for us. Thanks so much for watching. I'm Betty Nguyen in for Carol Costello. "AMERICAN MORNING" starts right now.
MYERS: Right now. See you tomorrow.
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Aired September 20, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Well, good morning to you on this Monday from the CNN global headquarters here in Atlanta. I'm Betty Nguyen in for Carol Costello.
Now in the news, Tropical Storm Jeanne is heading north through the Caribbean, leaving 54 people dead and 150 unaccounted for in Haiti. Most of those Haitians died in floods and mudslides.
There are conflicting reports about President Bush and John Kerry debating. A source familiar with the negotiations tells the Associated Press details of a deal on three presidential debates are still being worked out. But a Bush campaign spokeswoman says there is no deal and it hasn't been reached just yet.
Another hearing this morning for Congressman Porter Goss. The Senate Select Committee on Intelligence holds its second hearing on President Bush's nomination of Goss to be CIA director.
An administration official says President Bush will lift sanctions against Libya and could make that announcement today. The move could bring more than $1 billion in payments to families of Pan Am Flight 103 victims.
(WEATHER BREAK)
NGUYEN: Almost three years after Enron's collapse, the first criminal trial of former Enron executives is set to begin today.
Carrie Lee has that story, and she's now at the Nasdaq Marketsite in Times Square with the latest.
Hi there -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Betty.
Well, the focus of this trial is a single alleged sham transaction involving Merrill Lynch that closed almost two years before Enron collapsed into bankruptcy. Six defendants here: four former Merrill Lynch executives, two former mid-level Enron executives. They're charged with conspiracy and fraud, and they're accused of helping push through the sale of several electricity- producing Nigerian barges.
Now, prosecutors say they knew this sale was not legitimate, because Enron had secretly promised to buy back the barges.
Now, Merrill Lynch as the corporation avoided prosecution a year ago, acknowledging some of its employees may have broken the law.
The bottom line: this case could shed light on how prosecutors are going to pursue cases against Enron's higher-ups. Remember the fate of former Enron CEOs Ken Lay and Jeff Skilling has yet to be determined. Their trial dates haven't been set. Skilling has pleaded not guilty. Ken Lay has denied wrongdoing.
So, that's the latest getting started today -- Betty.
NGUYEN: All right, speaking of shedding some light, how are futures doing today?
LEE: The futures are looking pretty weak. We have oil prices on the rise early this morning. That's weighing on things. We have a big Fed meeting tomorrow to see whether the Fed decides, once again, to raise interest rates. It's widely expected they will do so by a quarter-point.
Nike is also reporting profits later this morning, expected to earn $1.11 a share for the recent quarter.
NGUYEN: Carrie Lee, thank you.
It won't be long now, just 43 days until the presidential election, and here is the latest campaign news.
There are reports of a tentative deal between the Bush and Kerry campaigns on the presidential debates. The opening debate would be on September 30 in Coral Gables, Florida, on foreign policy. Now, on October 8, Bush and Kerry would take questions from undecided voters in St. Louis. And the final session, October 13 in Tempe, Arizona, that will center on domestic issues. But none of this is set in stone just yet.
In the meantime, both candidates are stepping up their rhetoric today. John Kerry delivers a major address this morning in New York City. The topic? Post-war Iraq. We'll have live coverage at 10:00 a.m. Eastern. Also, a Kerry ad that starts airing today links the cost of Iraq with problems back here at home.
And President Bush plans to fire back at his Democratic rival. The president is flying from Washington to New Hampshire, where he is expected to step up his criticism of Kerry's Iraq policy. He'll then fly to New York City ahead of a speech to the U.N. General Assembly. And CNN, of course, will have live coverage of the president's speech. That is at 10:30 a.m. Eastern tomorrow.
Well, you know it's an election season when the topic is terrorism and the rhetoric is flying thick and fast. House Speaker Dennis Hastert's claim that al Qaeda would operate better with John Kerry in the White House got a whole lot of talk started over the weekend. But Kerry's running mate isn't having any of it.
(BEGIN VIDEO CLIP)
REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: I think you'll see al Qaeda trying to influence this election. And if they can't influence here, they're going to try to influence in Iraq. And you'll see, I think, a blitz. I wouldn't be surprised to even see a blitz in Afghanistan as well.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: He said -- and I'm paraphrasing it now -- he said last night something to the effect that al Qaeda wants John Kerry to be president of the United States. Let me just say this in the simplest possible terms: When John Kerry is president of the United States, we will find al Qaeda where they are and crush them before they can do damage to the American people.
(END VIDEO CLIP)
NGUYEN: Neither the Bush campaign nor the White House has offered any comment on this controversy.
With the election only six weeks away -- can you believe it's just six weeks -- the war of words is heating up.
Vaught Ververs, editor of "The Hotline," joins us now by phone to talk about today's political hot topics.
And good morning to you.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning.
NGUYEN: Well, we can't leave you without talking, of course, about Dennis Hastert and him raising some eyebrows with those words that he mentioned over the weekend. This fear factor, I guess some would call it, does that work in political elections?
VERVERS: Well, you know, this is certainly a role that Dennis Hastert has stepped up to and really warmed up to over the last couple of weeks. He's been making some charges about George Soros, who is a major Democratic donor. Now, we've got this. So, he's really taking on the role of attack dog.
Do you know what? The administration has -- we've seen this out of them before. The vice president has made some pretty controversial comments on this topic. And basically that's the Bush campaign's argument is that they are better prepared to keep America safer, both here and abroad, than John Kerry is.
Now, the Democrats will tell you that they believe that that kind of rhetoric that the speaker used really crosses the line. And you saw John Edwards coming out very forcefully and defending that. And that's part of what John Edwards' role has been lately has sort of been the defense against that.
So, we saw the dynamic play out yesterday that we've sort of seen over the past few weeks. NGUYEN: Now, you mentioned John Edwards' role, but he's been taking some heat lately for not being as much of an attack dog as maybe he should be this time of year.
VERVERS: Yes, there are a lot of people who observe campaigns maybe not directly connected to either one of them, especially on the Democratic side, feel that Edwards that Edwards has been a little bit of a disappointment. They'd like to see him out there taking on the role of attack dog, really going out there and taking it to the administration.
We've seen John Kerry do that far more than John Edwards. But then again Edwards' defenders will tell you that the reason he was picked to be on this ticket was because of his optimistic nature, because of his sunny disposition. He made a point during the primaries of not being negative. And for him to turn around and do that would be very out of character and not really the reason they put him on the ticket.
NGUYEN: We want to move now to CBS and what's becoming a bit of a memo-gate there. CBS may make a statement today. Is this network in some hot water?
VERVERS: Well, I think that they're not in real hot water. This is definitely an embarrassment to the network. It's got a long history of being the Tiffany network of television news; Walter Cronkite, of course.
So, you know, this isn't going to be a fatal blow at all, but it's a severe embarrassment for the network and for Dan Rather. It confirms what a lot of Republicans think about him, that's he's got an agenda. This really will help solidify that in their mind.
But, you know, CBS will continue to go on. What it really does is it takes the focus off of the issue at hand. It pretty much is going to put a rest, I think, to this debate over the president's Guard service, at least for the next week, because all we've been doing is talking about the network and these documents and not some of the other stuff that's been charged.
So, in that sense, it's been very good for President Bush.
NGUYEN: Exactly. Quickly, though, will it lead to an internal investigation, maybe even some charges?
VERVERS: You will definitely see an internal investigation. I think you may see some people at least suspended, put on leave, if not fired for this. I think the prevailing view is that somebody's head is going to have to roll within CBS over this, and it's just a matter of if it's going to be a producer or somebody higher up.
NGUYEN: We'll continue to watch. Vaughn Ververs with "The Hotline," thanks for joining us.
VERVERS: You bet. Thanks. NGUYEN: News around the world now. In Indonesia, the world's most populous Muslim nation, a change may be brewing. Early results are in this morning from the country's first direct presidential election, and the numbers show the challenger is leading the incumbent. Final results are due early next month.
In southern Turkey, no claim of responsibility yet for a bombing attack near an outdoor concert last night. Turkey's official news agency says 14 people were hurt in that explosion. The bomb was planted in a police car.
And Israel launches another target killing -- targeted killing, I should say, in Gaza. Israeli military officials say an airstrike on a car in Gaza City killed a Hamas field commander. That man was suspected of being involved in rocket attacks on southern Israel.
The FBI says mortgage fraud is running rampant across the country. Ahead, we'll explain why the FBI thinks there is an increase in fraud in the housing industry.
But first, here's a look at what else is making news on this Monday morning.
(COMMERCIAL BREAK)
NGUYEN: Your news, money, weather and sports. The time right now is 6:45 Eastern. Here's what's all new this morning.
Reports today of a tentative agreement for Senator John Kerry and President Bush to debate. The reports say the two will hold three debates, but details, well, they're still being worked out.
Photographer Eddie Adams is dead of Lou Gehrig's disease at age 71. He won the Pulitzer Prize for this 1968 photo of a communist guerilla being executed in Saigon. Maybe we'll get you that picture. It happened during the Vietnam War. That's not the picture.
But in money, a decision by the Russian oil firm, Yukos, to suspend oil experts to China is impacting the global market. It's fueled another increase. Oil prices rose today above $46 a barrel.
In culture, oops, she did it again, another surprise wedding for Britney Spears, No. 2. The pop star married fiance Kevin Federline over the weekend, and the couple had originally announced plans for a November wedding. It was kind of a big surprise, at least to the media.
In sports, the Cincinnati Bengals won and won ugly over the Miami Dolphins 16-13. The Bengals held the Dolphins to just 25 yards rushing and forced three turnovers to notch their first win of the season.
(WEATHER BREAK)
NGUYEN: The international markets are starting the week off in negative territory. Tokyo's Nikkei is down nearly 57 points. The London Market is trading down around 11 points. And in Paris, the markets are also down, around 17 and a half points.
But it's great to take advantage of low interest rates. Beware, though, of mortgage fraud.
Carrie Lee has this story, and she's at the Nasdaq Marketsite.
Good morning to you.
LEE: Hi, Betty.
Well, the FBI is saying there are about three times the levels of suspicious activity involving mortgages than there were in 2001. The FBI currently has 533 pending mortgage fraud investigations compared with 102 in 2001.
A couple of reasons: They say the lending and refinancing boom that accompanied low interest rates in the past couple of years is a key reason. And the FBI has also identified a couple of hot spots around the country, where fraud is especially prevalent. And that includes -- they include Florida, California, Nevada, Michigan, Missouri and Illinois.
A couple of different scams going on here: fake identities and credit histories; also appraising properties at artificially high levels, basically making a buyer pay or encouraging a buyer to pay more than the property is actually worth.
So, people should be aware of these practices if you're going to buy or refinance a home.
Quickly, one stock we're watching today, Lennar, is a big homebuilder. The company just reported a 12 percent increase in quarterly profits for the recent quarter. We'll be keeping an eye on that stock.
Overall, though, those high oil prices are weighing on stocks this morning. It looks like we could see some selling at the 9:30 opening bell.
Betty -- back to you.
NGUYEN: And so, what does that mean for futures right now?
LEE: Yes, futures are looking weak. It looks like oil is certainly part of the reason. We also have that big Fed meeting tomorrow. So, some people may be waiting on the sidelines to see what Alan Greenspan and company do involving interest rates. A lot of people are expecting a quarter-point hike tomorrow.
NGUYEN: All right, Carrie Lee, thanks so much.
Well, it was a busy NFL weekend. CNN's sports contributor Chris Cotter joins us next with a roundup of the gridiron winners and losers.
(COMMERCIAL BREAK) NGUYEN: It's time now to talk sports. And it was an important weekend in the NFL for two of the games' premier quarterbacks.
Joining us to talk about all of this football, among other things, is CNN's sports contributor Chris Cotter.
Good morning to you.
CHAD MYERS, CNN METEOROLOGIST: Who is that? Vinny Testaverde she's talking about?
CHRIS COTTER, CNN SPORTS CONTRIBUTOR: I think that's not one of the teams.
MYERS: Oh!
COTTER: Yes, (UNINTELLIGIBLE). If you get a win, though, that's all that really matters.
NGUYEN: Right, exactly, a win.
COTTER: He did not have a good game. But, yes, week two now, we're starting to see some trends.
And one thing that -- a trend we haven't seen is the Colts going 0-2. So, Peyton Manning going against Steve McNair, the big game of the day -- this is probably the game of the day. And actually it started out really bad for the Colts and really good for the Tennessee Titans. Here's Chris Brown going in for a score, a running back out of Colorado. And this gives Tennessee the early lead.
And it was not looking good for the Colts until the second half, and that's when Peyton Manning, and Edgerrin James especially really took over, Edgerrin James over 100 yards in the second half alone in this game. And ultimately, it propelled the Colts to the win. Here you see him going off on the left side here in the second half, taking it in for the score, about 40 yards here. This was really the backbreaker for the Colts as they get the win.
They improved to 1-1 on the season, and the Titans dropped to 1-1 as well.
NGUYEN: And that's just one of the many games that were played yesterday.
COTTER: The Falcons, too, when you talk about premier quarterbacks...
MYERS: How many yards did he run for, Michael Vick? It had to be over 100 yards.
COTTER: A hundred and nine yards for Michael Vick.
NGUYEN: A hundred and nine?
MYERS: Wow! COTTER: And, you know, the record for 100-yard games for a quarterback is four, and he has three in his career. So, he's just one away in his young career. And look at him going around left side here. Look at that right there with the flip. He almost gets into the end zone, does not quite.
MYERS: I know. I saw that, and I went, 'Oh, he's hurt again!'
NGUYEN: Ouch!
MYERS: But, no, he got up.
COTTER: But how dynamic is he?
MYERS: Yes.
COTTER: I mean, here's the catch by Alge Crumpler down the left side. He passed for 175 yards, ran for 109 yards. He's unstoppable.
NGUYEN: He's on fire. All right, but there was an upset, wasn't there?
COTTER: There was a big upset. By the way, the Bears and Packers, this is a situation where the Bears' longtime rivalries playing in -- what was it? The black and blue division of the NFC. And the Bears hadn't beaten the Packers at Lambeau Field in a long time. But today -- or yesterday, rather, 21-10, the Bears with the win, and it's surprising the fact that the Bears looked so bad in week one and the Packers looked impressive.
Here is Mike Brown, by the way, picking up a fumble on his own 5- yard line and going...
MYERS: Fumbling and stumbling!
COTTER: Ninety-five yards. Now that's a defensive back.
NGUYEN: (UNINTELLIGIBLE) there.
MYERS: Right.
COTTER: If that was a lineman, he'd have gone about 45 yards and had been caught by another lineman.
NGUYEN: I'm impressed.
COTTER: That would have been more fun to watch. But Mike Brown getting a touchdown for the Bears, and then finally another interception for Brett Favre, unlikely, a difficult day for him and a strange day for the home opener for them, but the Bears get the win 21-10.
NGUYEN: All right, as a Cowboy fan, we are always watching those Redskins. How did they fare?
COTTER: The Redskins were impressive in week one; not so yesterday.
NGUYEN: Oh, OK.
COTTER: And seven turnovers, the Bears -- the Giants, rather, caused seven turnovers, and Kurt Warner just had a miserable day, sort of hearkening back to his final few days with the Rams.
MYERS: Don't you think Coach Gibbs wishes he was racing a car?
COTTER: I mean, well, he's 1-1, and Clinton Portis here with the fumble. He had a huge week in week one; not so here, as Barrett Green picks up the fumble and returns it for a touchdown. Again, four fumbles, three interceptions for the Redskins.
NGUYEN: What a bad day!
MYERS: Oh!
COTTER: Here's another sad one. Now, here's rumbling, bumbling and stumbling.
NGUYEN: That's the definition right there.
COTTER: That's hands for a defensive lineman. One final interception in the end zone, and, see, this is what happens when you have a day like this.
MYERS: Yes.
COTTER: He's saying, one final interception, one final interception, finally there it is.
NGUYEN: They got it.
MYERS: Time to go, bud.
NGUYEN: All, we are out of time. Thanks so much, Chris Cotter. It's always fun.
COTTER: You're very welcome.
NGUYEN: You guys should hang out on the weekends and watch football with your big HDTVs. That's all you do, right?
COTTER: It was so nice this past weekend.
(CROSSTALK)
NGUYEN: All right, we've got the DAYBREAK coffee mug quiz in about two minutes, but first this is DAYBREAK for Monday.
(COMMERCIAL BREAK)
MYERS: Anyway, it's time to give away a coffee -- we haven't been able to do this for a while. We've been so, so busy with these hurricanes. Now, we can give away a CNN DAYBREAK mug. Here are your questions for today: How many times had Sarah Jessica Parker been nominated for lead actress in a comedy series before winning last night? And name at least one state in which the presidential debates are tentatively set to take place? Just give me one state. There's just going to be a couple of these things, so all you need to know is one state.
We will name the winner tomorrow. CNN -- the way you get to us. Don't go on to CNN.com. Go to Daybreak@CNN.com.
NGUYEN: DAYBREAK.
MYERS: And just e-mail it to us directly. If you start clicking around on CNN.com looking for our link, you won't find one, because we're early and...
NGUYEN: We're special.
MYERS: Yes. Well, not really.
NGUYEN: Well, different.
Well, that does it for us. Thanks so much for watching. I'm Betty Nguyen in for Carol Costello. "AMERICAN MORNING" starts right now.
MYERS: Right now. See you tomorrow.
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