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CNN Live At Daybreak

Sexual Disorientation; 'Immigrant Nation'

Aired October 15, 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 good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello.
"Now in the News."

Overnight explosions and gunfire rocked the Iraqi city of Fallujah. U.S. Marines and Iraqi troops battled insurgents on the ground after airstrikes on suspected terrorist sites in the city. No word on casualties.

Michigan has joined three other states in issuing an emergency order to make sure only high-risk people get flu shots. Health care providers could get jail time for giving the shots to people not on that priority list.

At noon Eastern, the group called Concerts for Change plans to deliver a petition to the Sinclair Broadcast Group. Concerts is trying to stop Sinclair from broadcasting an anti-Kerry documentary on its 62 TV stations.

The American League Championship series resumes tonight in Boston, weather permitting. Kevin Brown for the Yankees, Bronson Arroyo for the Red Sox. The Yanks are up two games to none in the series.

(WEATHER REPORT)

COSTELLO: It is 18 days until Election Day in America, and there is more fallout from the third presidential debate. You've no doubt heard John Kerry's comments about homosexuality. But remember, moderator Bob Schieffer touched things off with his question. He asked, do you believe homosexuality is a choice? And as you may remember, Kerry made this reference:

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: If you were to talk to Dick Cheney's daughter, who is a lesbian, she would tell you that she's being who she was, she's being who she was born as.

(END VIDEO CLIP)

COSTELLO: You may also remember Dick Cheney himself has referenced his daughter's sexuality on the campaign trail, but that did not stop his wife's comment about Kerry's comment.

(BEGIN VIDEO CLIP) LYNNE CHENEY, WIFE OF VICE PRESIDENT DICK CHENEY: This is not a good man. This is not a good man. And, of course, I am speaking as a mom, and a pretty indignant mom. This is not a good man. What a cheap and tawdry political trick.

(END VIDEO CLIP)

COSTELLO: No word from the low-key Mary Cheney on how she actually feels. But John Edwards' wife, Elizabeth, expressed her feelings this way:

(BEGIN VIDEO CLIP)

ELIZABETH EDWARDS, WIFE OF SENATOR JOHN EDWARDS: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences.

(END VIDEO CLIP)

COSTELLO: To which John Kerry offered this mea culpa -- quote -- he said, "I love my daughters. They love their daughter. I was trying to say something positive about the way strong families deal with this issue." And, of course, that's a direct quote from John Kerry.

So, the war of words is escalating into what?

Our political analyst, John Mercurio, who writes our political online column for CNN.com, "The Morning Grind," joins us live from Washington -- John.

JOHN MERCURIO, CNN POLITICAL EDITOR: Good morning.

COSTELLO: What is this building to? Anything?

MERCURIO: I don't know. You know, I think in part this is a response from -- you know, a very personal response from the Cheney family, who do seem to be extremely upset about John Kerry's remarks.

On the other hand, I think we saw a lot of polling after the debate that showed that President Bush had not performed as well as a lot of Republican strategists had hoped. And we're certainly distracted and not talking about that performance. Now we're talking about this one sort of misstep.

So, I think it might be part of a strategy. I don't want to be too cynical. You know, it seems as though the Cheneys are, you know, sincerely outraged at this situation, too.

COSTELLO: Well, yes, because you would be, like, you know, kind of accusing them of also using their daughter.

MERCURIO: Right.

COSTELLO: But, I mean, some might say the reason behind the reason given by John Kerry as to why he keeps mentioning Cheney's gay daughter is to split the Republican Party. Is there something to that?

MERCURIO: Well, you know, I think in watching the debate that night, I was sort of surprised that he brought it up. One Democrat that I was talking to during the debate was also sort of shocked.

On the other hand, as the Kerry campaign has mentioned, Dick Cheney himself brought this up during -- he brought up his daughter and her sexual orientation during a town hall in Iowa in August.

It's pretty well-known, not just by people who follow politics, but by any sort of voter, I think, that Dick Cheney's daughter is gay. So, I'm not sure. And obviously, John Edwards brought it up himself during his debate with Dick Cheney, and there were no complaints from Republicans at the time.

COSTELLO: But, you know, why not ignore Lynne Cheney's comments? Why did Mrs. Edwards suddenly get involved in this? Was this planned?

MERCURIO: I don't know if that was planned. It was coordinated, I do think, in the sense that Debra Deshong, one of the Kerry campaign spokesmen, also said a similar thing on "AMERICAN MORNING" yesterday.

It just -- you know, to me, it just sort of reflects how bare- knuckles this campaign has become. I mean, Lynne Cheney hits back that John Kerry is not a good man. And then obviously Mary Cheney's daughter -- the Cheneys' other daughter was on the town hall with Paula Zahn last night, and I think she referred to these tactics as unprecedented in American politics.

I mean, this campaign is rough. This is rough business.

COSTELLO: So, should the new strategy by the Democrats be just to shut up?

MERCURIO: I don't think they're going to shut up. I think they're probably hoping that they can talk about other things today. That, you know, we're not focused and distracted on this topic for the entire weekend. I mean, you know, we only have 18 days left in this campaign, and hopefully we're not talking about Mary Cheney for the rest of them.

COSTELLO: I hope not. John Mercurio from "The Political Grind," (sic) thanks so much for joining DAYBREAK this morning.

I'm sure there will be more words on "AMERICAN MORNING" when Bush campaign advisor, Mary Matalin, and Kerry advisor, Tad Devine, drop in. That's coming up in the next hour right here on CNN.

Have you ever lost a job to someone in this country illegally? Or perhaps you know someone who has. It is a sticky issue. And CNN is front and center this weekend in a documentary entitled, "Immigrant Nation, Divided Country."

Here's our Maria Hinojosa. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (singing): And I'm proud to be an American... MARIA HINOJOSA, CNN CORRESPONDENT (voice over): July 4 in northern Georgia in the cradle of the Blue Ridge Mountains.

UNIDENTIFIED MALE (singing): Who gave that right to me.

HINOJOSA: The people of Clayton, Georgia, are taking in the good life and feeling patriotic. But the ones who make this party possible are people like Gabe (ph)...

UNIDENTIFIED MALE: Another plate? OK.

HINOJOSA: ... who asked us not to use his last name.

UNIDENTIFIED MALE: It's hard work today. There's no Independence Day for us, just for the American people.

HINOJOSA: Gabe (ph) got here four years ago.

UNIDENTIFIED MALE: Only I know Georgia for Atlanta the Olympics Games. Maybe this city is more rich. People is rich.

HINOJOSA: Gabe (ph), his wife and son came here with a legal visa to visit Disneyland. They just never left. They were just getting by in Mexico, but they risked losing everything for a chance at something better.

UNIDENTIFIED MALE (through translator): In Mexico, we had less time to be together as a family. Here, we have more time to share together. Our economic situation is much better.

UNIDENTIFIED MALE: Lots of people have balloons today.

HINOJOSA: Just one hour south in Gwinnett County, Georgia, Jimmy Hercheck (ph), another proud Southerner, is also feeling patriotic, passing down his traditions to his daughters, Alice and Beatrice.

UNIDENTIFIED MALE: Throw her out some food, Beatrice.

HINOJOSA: Some Latinos watch the celebrations from a distance. Jimmy Hercheck (ph) thinks they're still too close.

UNIDENTIFIED MALE: I see what's happening here in our county reminds me of what they call the barrios, you know, the poor neighborhoods in Southern California.

HINOJOSA (on camera): What's happening now?

UNIDENTIFIED MALE: Somebody is coming to pick up workers.

HINOJOSA (voice over): Hercheck (ph) is living in a Georgia transformed. Some 100,000 Latinos have settled in his county, more than in any other county in Georgia.

UNIDENTIFIED MALE: Several dozen men out here looking for jobs, and there's just two or three jobs that they can get at one time.

HINOJOSA: About half of those Latinos are illegal. Hercheck (ph) says they're destroying his neighborhood. A year ago, he sold his house and moved.

UNIDENTIFIED MALE: It brings back a lot of memories. It was pretty much your middle-class family neighborhood. And now you look around, it's maybe half small families and the other half have become pretty much boarding houses. I'm afraid that America could become a third-world country. We're importing poverty by millions every year.

(END VIDEOTAPE)

COSTELLO: It is a special you will not want to miss. CNN presents "Immigrant Nation, Divided Country." It airs Sunday night at 8:00 Eastern, 5:00 Pacific. That's in the p.m.

Still to come on DAYBREAK, what? More controversy about "Fahrenheit 9/11?" This time it involves the small screen.

And, puppets take on some of the world's political issues in quite a controversial way. "Team America" also takes on the world. Our Friday critic, Tom O'Neil, takes on the film.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: It's time now for a little business buzz. Oil prices hit yet another record high price as traders fret more and more about how the U.S. will stay warm during the cold winter ahead.

Carrie Lee is live from the Nasdaq Marketsite.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

Well, I know it seems like we talk about this every day, but oil prices hitting yet another high yesterday, closing at $54.76. We're up 68 percent so far this year in terms of rising oil prices.

Now, futures right now in electronic trading for oil are coming down a little bit, but you can bet oil prices are going to be front and center on investors' minds for stock trading today.

The futures right now are actually not looking too bad. We're actually expecting a little bit of gain, but we have a lot of economic news coming out that is certainly going to influence trading. We get a look at producer prices, which is a key inflation measure, also retail sales for September, and an early look from the University of Michigan regarding how people are feeling about the economy.

So certainly a lot on the economic plate. And oil prices will be ever-important today as a lot of people are anticipating, waiting to see if we can cross that $55 a barrel mark.

Yesterday, oil prices were part of the reason for the market declines. The Dow Jones Industrial ending the day down 107 points, the Nasdaq down nearly 1 percent. So, we'll see if we can get a rebound at all today, Carol.

Finally, I want to say, thank you to you and your staff, because of what finally arrived in my mailbox, my DAYBREAK coffee mug. So, keeping warm talking about this winter, I'm going to keep warm with another cup of coffee. Thank you.

COSTELLO: We are glad to send it to you, because we appreciate your fine reports each and every morning.

LEE: Thank you very much, Carol.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

A small jet went down in a residential part of Jefferson City, Missouri. Local police say the twin-engine jet, operated by a regional airline, was carrying only the pilot and co-pilot. No word yet on the injuries to the pilots or the people on the ground.

In money news, Northwest Airline pilots are close to agreeing to major concessions in contract negotiations. The pilots' union says a tentative agreement includes a $265 million cut for pilots over the next two years. The pilots still need to vote on this proposal.

In culture, a musical first is coming to the Las Vegas Strip in 2006, a production of Beatles' songs by the acrobatic troupe, Cirque du Soliel. It will replace Siegfried & Roy's magic act at the Mirage Hotel Casino.

In college football, the Miami Hurricanes squeaked by Louisville by just 3 points. The Canes fought back from 17 points down to beat the Cardinals 41-38. No. 3-ranked Miami improves to 5-0.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Still to come, the "Fahrenheit 9/11" controversy heats up again. And while Michael Moore fights his newest battle, hear what the president's dad said about the filmmaker. He had a few choice words.

Plus, "Team America," the new movie where commentary meets comedy, and it's all hanging by a thread.

(COMMERCIAL BREAK)

COSTELLO: A special cable TV airing of the film, "Fahrenheit 9/11," has now been canceled. IN DEMAND pay-per-view decided against the airing, which was scheduled for the day before the election. Director Michael Moore says he's now exploring possible legal action against the company.

In the meantime, one member of the Bush team has some harsh words for the controversial director, and that would be former President George Bush. Let's listen.

(BEGIN VIDEO CLIP)

GEORGE H.W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: Total ass, slimeball and outrageous in his lies about my family. When I saw him sitting at the Democratic Convention with Jimmy Carter, and later on the thing with Ron Reagan, I said, 'What in the hell? What depths will they go to, to dishonor the truth?'

(END VIDEO CLIP)

COSTELLO: "Fahrenheit 9/11" was released on video and DVD last week, and I don't think President Bush will be buying a copy.

"Team America: World Police" opens today. If you haven't heard about it, well, we will fill you in now. It's a movie that involves an international puppet police force and manages to anger liberal actor Sean Penn and the White House.

Who's behind the movie? The creators of "South Park," Trey Parker and Matt Stone.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The world is on the brink of disaster, and the only thing standing between order and chaos is us.

COSTELLO (voice over): In the latest big-budget offering from the creators of "South Park," two-foot-tall marionettes, puppets, do battle with terrorists, take on North Korea's Kim Jong Il, and in a love scene initially so racy it earned an NC-17 rating, get it on.

The movie, a parody of the war on terrorism, promises to offend as many on the left as on the right. And the criticism has moved from movie critique to social commentary.

MATT STONE, CO-CREATOR: If Sean Penn, Hollywood bad-boy Sean Penn, is (UNINTELLIGIBLE) about for being irresponsible, yes, you know you've won.

COSTELLO: At issue, comments made by the filmmakers to "Rolling Stone" magazine criticizing rapper P. Diddy's Vote or Die campaign. Of those comments, Sean Penn wrote -- and I quote: "It's all well to joke about me or whomever you choose. Not so well to encourage irresponsibility that will ultimately lead to the disembowelment, mutilation, exploitation and death of innocent people throughout the world" -- end quote.

(END VIDEO CLIP)

COSTELLO: Now, let me explain the Sean Penn rant. The moviemakers object to some get-out-the-vote campaigns, because they ask people to vote but not to be informed. In other words, is it really the American way to vote when you don't have a clue as to what you're voting for or for whom? So in that arena, the movie opens today.

Tom O'Neil from "In Touch" magazine, live in New York, to preview this puppet tale and more.

Wow!

TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": It's a big wow! This is a movie that dares to call gay people "fags" and black people "spades." You spent 90 minutes with your jaw on the floor watching this movie, saying, 'How did this ever get made?'

But the brilliance of the movie is that, on one hand, the conservatives get it right in the puss when we see them so earnest in their zeal to clean up terrorism that they blow up the Eiffel Tower. And they blunder all over the place while -- quote/unquote -- "trying to put the 'f' back in freedom." But...

COSTELLO: In this particular scene, it's interesting, because you see the guy carrying the suitcase.

O'NEIL: Yes.

COSTELLO: And they say inside that suitcase are the weapons of mass destruction.

O'NEIL: Right.

COSTELLO: And then all heck breaks loose.

O'NEIL: Oh, and then all heck breaks loose. But, you know, the best thing about this movie, Carol, is what happens to liberal Hollywood.

Speaking of Sean Penn, he is part of a liberal star delegation that's duped by the Korean president to come to North Korea and become part of his diabolical scheme, even though they don't know it. And so, and you see Sean Penn telling everybody, "I've been to Iraq, I've been to Iraq," and then telling Sean, shut up, we've been to the Grand Canyon, and that doesn't make us an expert. You see Susan...

COSTELLO: This film basically makes every -- oh, Susan Sarandon. And isn't Michael Moore in the movie as a suicide bomber?

O'NEIL: Yes, a suicide bomber jamming hot dogs in his mouth. You see Susan Sarandon get her head blown off. My god!

COSTELLO: Is the movie enjoyful to watch? I can't imagine it would be, but it would sure be interesting.

O'NEIL: It really is. And the genius of it is that they got away with this. The whole business about these puppets and the sex scene is that Parker and Stone were so brilliant in putting this in the movie, because it distracted the censors. They were over there looking at all of this sex thing, forgetting about all of the other offensive things in this movie.

COSTELLO: Well, I can't wait to see it, I'll admit it. I'll admit it, I'm going to go see it tonight.

O'NEIL: It's a wonderful movie, it really is.

COSTELLO: All right. Well, let's move on to the other movies, because "Shall We Dance?" with Richard Gere and Susan Sarandon is coming out. Tell us about that one.

O'NEIL: Well, this is a sweet movie. It's the story of a Chicago lawyer who is disaffected with his wife, who happens to be Susan Sarandon, who keeps her head in this movie. He signs up for dance lessons just as an escape. Well, he is here dancing with Stanley Tucci in the men's room. This is a co-worker of his, who shares his secret love of ballroom dancing.

But it's -- of course, they get caught there. But Richard Gere really has eyes for J.Lo here, who is this dance instructor. But he ends up not having a romance with her at all, but literally having a romance with ballroom dancing.

COSTELLO: Oh! Well, that is sweet.

O'NEIL: Yes.

COSTELLO: What a contrast to the previous movie. Quickly, I wanted to talk to you about the Oscars and Chris Rock, because you had some choice words in "USA Today," I understand.

O'NEIL: Yes, there's an interview with me in there in today's edition, where, frankly, I'm warning Chris Rock to hold back on Oscar night. On one hand, it's a brilliant choice to pick this guy, because he is so hip. He represents the anti-establishment in Hollywood. And remember what the Oscars are. That's the establishment. And when hosts have failed, they have been the bombastic, heavy-handed-type of comic, like David Letterman.

So, Chris, we're all rooting for you, but pull back a little bit on Oscar night.

COSTELLO: Yes. Well, it's just an interesting choice. I can't wait to see that, too.

O'NEIL: I know.

COSTELLO: Tom O'Neil from "In Touch Weekly" joining us on DAYBREAK, thank you.

Your chance to win a DAYBREAK coffee mug in two minutes, but first this is DAYBREAK for a Friday morning.

(COMMERCIAL BREAK)

CHAD MYERS, CNN METEOROLOGIST: There it is, the DAYBREAK coffee mug. COSTELLO: Carrie Lee was mighty handy with hers.

MYERS: Not Lord Stanley's Cup...

COSTELLO: But it's close.

MYERS: But we may not even get Lord Stanley's Cup this year. We'll have to see.

Here are the two questions. What is the musical artist who is launching his own satellite radio channel? Had that about an hour ago. And a photo by which artist in Elton John's collection received the highest bid at auction? They raised $900,000 at this auction.

COSTELLO: It was amazing.

MYERS: We will give you the winners on Monday.

COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.

MYERS: Have a great weekend.

COSTELLO: You too, Chad. "AMERICAN MORNING" starts right now.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired October 15, 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 good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello.
"Now in the News."

Overnight explosions and gunfire rocked the Iraqi city of Fallujah. U.S. Marines and Iraqi troops battled insurgents on the ground after airstrikes on suspected terrorist sites in the city. No word on casualties.

Michigan has joined three other states in issuing an emergency order to make sure only high-risk people get flu shots. Health care providers could get jail time for giving the shots to people not on that priority list.

At noon Eastern, the group called Concerts for Change plans to deliver a petition to the Sinclair Broadcast Group. Concerts is trying to stop Sinclair from broadcasting an anti-Kerry documentary on its 62 TV stations.

The American League Championship series resumes tonight in Boston, weather permitting. Kevin Brown for the Yankees, Bronson Arroyo for the Red Sox. The Yanks are up two games to none in the series.

(WEATHER REPORT)

COSTELLO: It is 18 days until Election Day in America, and there is more fallout from the third presidential debate. You've no doubt heard John Kerry's comments about homosexuality. But remember, moderator Bob Schieffer touched things off with his question. He asked, do you believe homosexuality is a choice? And as you may remember, Kerry made this reference:

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: If you were to talk to Dick Cheney's daughter, who is a lesbian, she would tell you that she's being who she was, she's being who she was born as.

(END VIDEO CLIP)

COSTELLO: You may also remember Dick Cheney himself has referenced his daughter's sexuality on the campaign trail, but that did not stop his wife's comment about Kerry's comment.

(BEGIN VIDEO CLIP) LYNNE CHENEY, WIFE OF VICE PRESIDENT DICK CHENEY: This is not a good man. This is not a good man. And, of course, I am speaking as a mom, and a pretty indignant mom. This is not a good man. What a cheap and tawdry political trick.

(END VIDEO CLIP)

COSTELLO: No word from the low-key Mary Cheney on how she actually feels. But John Edwards' wife, Elizabeth, expressed her feelings this way:

(BEGIN VIDEO CLIP)

ELIZABETH EDWARDS, WIFE OF SENATOR JOHN EDWARDS: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences.

(END VIDEO CLIP)

COSTELLO: To which John Kerry offered this mea culpa -- quote -- he said, "I love my daughters. They love their daughter. I was trying to say something positive about the way strong families deal with this issue." And, of course, that's a direct quote from John Kerry.

So, the war of words is escalating into what?

Our political analyst, John Mercurio, who writes our political online column for CNN.com, "The Morning Grind," joins us live from Washington -- John.

JOHN MERCURIO, CNN POLITICAL EDITOR: Good morning.

COSTELLO: What is this building to? Anything?

MERCURIO: I don't know. You know, I think in part this is a response from -- you know, a very personal response from the Cheney family, who do seem to be extremely upset about John Kerry's remarks.

On the other hand, I think we saw a lot of polling after the debate that showed that President Bush had not performed as well as a lot of Republican strategists had hoped. And we're certainly distracted and not talking about that performance. Now we're talking about this one sort of misstep.

So, I think it might be part of a strategy. I don't want to be too cynical. You know, it seems as though the Cheneys are, you know, sincerely outraged at this situation, too.

COSTELLO: Well, yes, because you would be, like, you know, kind of accusing them of also using their daughter.

MERCURIO: Right.

COSTELLO: But, I mean, some might say the reason behind the reason given by John Kerry as to why he keeps mentioning Cheney's gay daughter is to split the Republican Party. Is there something to that?

MERCURIO: Well, you know, I think in watching the debate that night, I was sort of surprised that he brought it up. One Democrat that I was talking to during the debate was also sort of shocked.

On the other hand, as the Kerry campaign has mentioned, Dick Cheney himself brought this up during -- he brought up his daughter and her sexual orientation during a town hall in Iowa in August.

It's pretty well-known, not just by people who follow politics, but by any sort of voter, I think, that Dick Cheney's daughter is gay. So, I'm not sure. And obviously, John Edwards brought it up himself during his debate with Dick Cheney, and there were no complaints from Republicans at the time.

COSTELLO: But, you know, why not ignore Lynne Cheney's comments? Why did Mrs. Edwards suddenly get involved in this? Was this planned?

MERCURIO: I don't know if that was planned. It was coordinated, I do think, in the sense that Debra Deshong, one of the Kerry campaign spokesmen, also said a similar thing on "AMERICAN MORNING" yesterday.

It just -- you know, to me, it just sort of reflects how bare- knuckles this campaign has become. I mean, Lynne Cheney hits back that John Kerry is not a good man. And then obviously Mary Cheney's daughter -- the Cheneys' other daughter was on the town hall with Paula Zahn last night, and I think she referred to these tactics as unprecedented in American politics.

I mean, this campaign is rough. This is rough business.

COSTELLO: So, should the new strategy by the Democrats be just to shut up?

MERCURIO: I don't think they're going to shut up. I think they're probably hoping that they can talk about other things today. That, you know, we're not focused and distracted on this topic for the entire weekend. I mean, you know, we only have 18 days left in this campaign, and hopefully we're not talking about Mary Cheney for the rest of them.

COSTELLO: I hope not. John Mercurio from "The Political Grind," (sic) thanks so much for joining DAYBREAK this morning.

I'm sure there will be more words on "AMERICAN MORNING" when Bush campaign advisor, Mary Matalin, and Kerry advisor, Tad Devine, drop in. That's coming up in the next hour right here on CNN.

Have you ever lost a job to someone in this country illegally? Or perhaps you know someone who has. It is a sticky issue. And CNN is front and center this weekend in a documentary entitled, "Immigrant Nation, Divided Country."

Here's our Maria Hinojosa. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (singing): And I'm proud to be an American... MARIA HINOJOSA, CNN CORRESPONDENT (voice over): July 4 in northern Georgia in the cradle of the Blue Ridge Mountains.

UNIDENTIFIED MALE (singing): Who gave that right to me.

HINOJOSA: The people of Clayton, Georgia, are taking in the good life and feeling patriotic. But the ones who make this party possible are people like Gabe (ph)...

UNIDENTIFIED MALE: Another plate? OK.

HINOJOSA: ... who asked us not to use his last name.

UNIDENTIFIED MALE: It's hard work today. There's no Independence Day for us, just for the American people.

HINOJOSA: Gabe (ph) got here four years ago.

UNIDENTIFIED MALE: Only I know Georgia for Atlanta the Olympics Games. Maybe this city is more rich. People is rich.

HINOJOSA: Gabe (ph), his wife and son came here with a legal visa to visit Disneyland. They just never left. They were just getting by in Mexico, but they risked losing everything for a chance at something better.

UNIDENTIFIED MALE (through translator): In Mexico, we had less time to be together as a family. Here, we have more time to share together. Our economic situation is much better.

UNIDENTIFIED MALE: Lots of people have balloons today.

HINOJOSA: Just one hour south in Gwinnett County, Georgia, Jimmy Hercheck (ph), another proud Southerner, is also feeling patriotic, passing down his traditions to his daughters, Alice and Beatrice.

UNIDENTIFIED MALE: Throw her out some food, Beatrice.

HINOJOSA: Some Latinos watch the celebrations from a distance. Jimmy Hercheck (ph) thinks they're still too close.

UNIDENTIFIED MALE: I see what's happening here in our county reminds me of what they call the barrios, you know, the poor neighborhoods in Southern California.

HINOJOSA (on camera): What's happening now?

UNIDENTIFIED MALE: Somebody is coming to pick up workers.

HINOJOSA (voice over): Hercheck (ph) is living in a Georgia transformed. Some 100,000 Latinos have settled in his county, more than in any other county in Georgia.

UNIDENTIFIED MALE: Several dozen men out here looking for jobs, and there's just two or three jobs that they can get at one time.

HINOJOSA: About half of those Latinos are illegal. Hercheck (ph) says they're destroying his neighborhood. A year ago, he sold his house and moved.

UNIDENTIFIED MALE: It brings back a lot of memories. It was pretty much your middle-class family neighborhood. And now you look around, it's maybe half small families and the other half have become pretty much boarding houses. I'm afraid that America could become a third-world country. We're importing poverty by millions every year.

(END VIDEOTAPE)

COSTELLO: It is a special you will not want to miss. CNN presents "Immigrant Nation, Divided Country." It airs Sunday night at 8:00 Eastern, 5:00 Pacific. That's in the p.m.

Still to come on DAYBREAK, what? More controversy about "Fahrenheit 9/11?" This time it involves the small screen.

And, puppets take on some of the world's political issues in quite a controversial way. "Team America" also takes on the world. Our Friday critic, Tom O'Neil, takes on the film.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: It's time now for a little business buzz. Oil prices hit yet another record high price as traders fret more and more about how the U.S. will stay warm during the cold winter ahead.

Carrie Lee is live from the Nasdaq Marketsite.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

Well, I know it seems like we talk about this every day, but oil prices hitting yet another high yesterday, closing at $54.76. We're up 68 percent so far this year in terms of rising oil prices.

Now, futures right now in electronic trading for oil are coming down a little bit, but you can bet oil prices are going to be front and center on investors' minds for stock trading today.

The futures right now are actually not looking too bad. We're actually expecting a little bit of gain, but we have a lot of economic news coming out that is certainly going to influence trading. We get a look at producer prices, which is a key inflation measure, also retail sales for September, and an early look from the University of Michigan regarding how people are feeling about the economy.

So certainly a lot on the economic plate. And oil prices will be ever-important today as a lot of people are anticipating, waiting to see if we can cross that $55 a barrel mark.

Yesterday, oil prices were part of the reason for the market declines. The Dow Jones Industrial ending the day down 107 points, the Nasdaq down nearly 1 percent. So, we'll see if we can get a rebound at all today, Carol.

Finally, I want to say, thank you to you and your staff, because of what finally arrived in my mailbox, my DAYBREAK coffee mug. So, keeping warm talking about this winter, I'm going to keep warm with another cup of coffee. Thank you.

COSTELLO: We are glad to send it to you, because we appreciate your fine reports each and every morning.

LEE: Thank you very much, Carol.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

A small jet went down in a residential part of Jefferson City, Missouri. Local police say the twin-engine jet, operated by a regional airline, was carrying only the pilot and co-pilot. No word yet on the injuries to the pilots or the people on the ground.

In money news, Northwest Airline pilots are close to agreeing to major concessions in contract negotiations. The pilots' union says a tentative agreement includes a $265 million cut for pilots over the next two years. The pilots still need to vote on this proposal.

In culture, a musical first is coming to the Las Vegas Strip in 2006, a production of Beatles' songs by the acrobatic troupe, Cirque du Soliel. It will replace Siegfried & Roy's magic act at the Mirage Hotel Casino.

In college football, the Miami Hurricanes squeaked by Louisville by just 3 points. The Canes fought back from 17 points down to beat the Cardinals 41-38. No. 3-ranked Miami improves to 5-0.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Still to come, the "Fahrenheit 9/11" controversy heats up again. And while Michael Moore fights his newest battle, hear what the president's dad said about the filmmaker. He had a few choice words.

Plus, "Team America," the new movie where commentary meets comedy, and it's all hanging by a thread.

(COMMERCIAL BREAK)

COSTELLO: A special cable TV airing of the film, "Fahrenheit 9/11," has now been canceled. IN DEMAND pay-per-view decided against the airing, which was scheduled for the day before the election. Director Michael Moore says he's now exploring possible legal action against the company.

In the meantime, one member of the Bush team has some harsh words for the controversial director, and that would be former President George Bush. Let's listen.

(BEGIN VIDEO CLIP)

GEORGE H.W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: Total ass, slimeball and outrageous in his lies about my family. When I saw him sitting at the Democratic Convention with Jimmy Carter, and later on the thing with Ron Reagan, I said, 'What in the hell? What depths will they go to, to dishonor the truth?'

(END VIDEO CLIP)

COSTELLO: "Fahrenheit 9/11" was released on video and DVD last week, and I don't think President Bush will be buying a copy.

"Team America: World Police" opens today. If you haven't heard about it, well, we will fill you in now. It's a movie that involves an international puppet police force and manages to anger liberal actor Sean Penn and the White House.

Who's behind the movie? The creators of "South Park," Trey Parker and Matt Stone.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The world is on the brink of disaster, and the only thing standing between order and chaos is us.

COSTELLO (voice over): In the latest big-budget offering from the creators of "South Park," two-foot-tall marionettes, puppets, do battle with terrorists, take on North Korea's Kim Jong Il, and in a love scene initially so racy it earned an NC-17 rating, get it on.

The movie, a parody of the war on terrorism, promises to offend as many on the left as on the right. And the criticism has moved from movie critique to social commentary.

MATT STONE, CO-CREATOR: If Sean Penn, Hollywood bad-boy Sean Penn, is (UNINTELLIGIBLE) about for being irresponsible, yes, you know you've won.

COSTELLO: At issue, comments made by the filmmakers to "Rolling Stone" magazine criticizing rapper P. Diddy's Vote or Die campaign. Of those comments, Sean Penn wrote -- and I quote: "It's all well to joke about me or whomever you choose. Not so well to encourage irresponsibility that will ultimately lead to the disembowelment, mutilation, exploitation and death of innocent people throughout the world" -- end quote.

(END VIDEO CLIP)

COSTELLO: Now, let me explain the Sean Penn rant. The moviemakers object to some get-out-the-vote campaigns, because they ask people to vote but not to be informed. In other words, is it really the American way to vote when you don't have a clue as to what you're voting for or for whom? So in that arena, the movie opens today.

Tom O'Neil from "In Touch" magazine, live in New York, to preview this puppet tale and more.

Wow!

TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": It's a big wow! This is a movie that dares to call gay people "fags" and black people "spades." You spent 90 minutes with your jaw on the floor watching this movie, saying, 'How did this ever get made?'

But the brilliance of the movie is that, on one hand, the conservatives get it right in the puss when we see them so earnest in their zeal to clean up terrorism that they blow up the Eiffel Tower. And they blunder all over the place while -- quote/unquote -- "trying to put the 'f' back in freedom." But...

COSTELLO: In this particular scene, it's interesting, because you see the guy carrying the suitcase.

O'NEIL: Yes.

COSTELLO: And they say inside that suitcase are the weapons of mass destruction.

O'NEIL: Right.

COSTELLO: And then all heck breaks loose.

O'NEIL: Oh, and then all heck breaks loose. But, you know, the best thing about this movie, Carol, is what happens to liberal Hollywood.

Speaking of Sean Penn, he is part of a liberal star delegation that's duped by the Korean president to come to North Korea and become part of his diabolical scheme, even though they don't know it. And so, and you see Sean Penn telling everybody, "I've been to Iraq, I've been to Iraq," and then telling Sean, shut up, we've been to the Grand Canyon, and that doesn't make us an expert. You see Susan...

COSTELLO: This film basically makes every -- oh, Susan Sarandon. And isn't Michael Moore in the movie as a suicide bomber?

O'NEIL: Yes, a suicide bomber jamming hot dogs in his mouth. You see Susan Sarandon get her head blown off. My god!

COSTELLO: Is the movie enjoyful to watch? I can't imagine it would be, but it would sure be interesting.

O'NEIL: It really is. And the genius of it is that they got away with this. The whole business about these puppets and the sex scene is that Parker and Stone were so brilliant in putting this in the movie, because it distracted the censors. They were over there looking at all of this sex thing, forgetting about all of the other offensive things in this movie.

COSTELLO: Well, I can't wait to see it, I'll admit it. I'll admit it, I'm going to go see it tonight.

O'NEIL: It's a wonderful movie, it really is.

COSTELLO: All right. Well, let's move on to the other movies, because "Shall We Dance?" with Richard Gere and Susan Sarandon is coming out. Tell us about that one.

O'NEIL: Well, this is a sweet movie. It's the story of a Chicago lawyer who is disaffected with his wife, who happens to be Susan Sarandon, who keeps her head in this movie. He signs up for dance lessons just as an escape. Well, he is here dancing with Stanley Tucci in the men's room. This is a co-worker of his, who shares his secret love of ballroom dancing.

But it's -- of course, they get caught there. But Richard Gere really has eyes for J.Lo here, who is this dance instructor. But he ends up not having a romance with her at all, but literally having a romance with ballroom dancing.

COSTELLO: Oh! Well, that is sweet.

O'NEIL: Yes.

COSTELLO: What a contrast to the previous movie. Quickly, I wanted to talk to you about the Oscars and Chris Rock, because you had some choice words in "USA Today," I understand.

O'NEIL: Yes, there's an interview with me in there in today's edition, where, frankly, I'm warning Chris Rock to hold back on Oscar night. On one hand, it's a brilliant choice to pick this guy, because he is so hip. He represents the anti-establishment in Hollywood. And remember what the Oscars are. That's the establishment. And when hosts have failed, they have been the bombastic, heavy-handed-type of comic, like David Letterman.

So, Chris, we're all rooting for you, but pull back a little bit on Oscar night.

COSTELLO: Yes. Well, it's just an interesting choice. I can't wait to see that, too.

O'NEIL: I know.

COSTELLO: Tom O'Neil from "In Touch Weekly" joining us on DAYBREAK, thank you.

Your chance to win a DAYBREAK coffee mug in two minutes, but first this is DAYBREAK for a Friday morning.

(COMMERCIAL BREAK)

CHAD MYERS, CNN METEOROLOGIST: There it is, the DAYBREAK coffee mug. COSTELLO: Carrie Lee was mighty handy with hers.

MYERS: Not Lord Stanley's Cup...

COSTELLO: But it's close.

MYERS: But we may not even get Lord Stanley's Cup this year. We'll have to see.

Here are the two questions. What is the musical artist who is launching his own satellite radio channel? Had that about an hour ago. And a photo by which artist in Elton John's collection received the highest bid at auction? They raised $900,000 at this auction.

COSTELLO: It was amazing.

MYERS: We will give you the winners on Monday.

COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.

MYERS: Have a great weekend.

COSTELLO: You too, Chad. "AMERICAN MORNING" starts right now.

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