Return to Transcripts main page

CNN Live At Daybreak

White House Scrambles for New DHS Nominee; Saddam One Year After Capture

Aired December 13, 2004 - 05:30   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: Good morning to you. Welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello.
"Now In The News": In Iraq a suicide car bombing just outside the green zone in Baghdad leaves six people dead and another 15 wounded. No U.S. casualties reported. Iraq's interim government is based in the green zone, as is the U.S. embassy.

NASA Administrator Sean O'Keefe is expected to announce his resignation today. CNN has learned that O'Keefe will accept an offer to become chancellor at Louisiana State University.

A California jury resumes deliberations today in the penalty phase of Scott Peterson's murder trail. The panel met for nine hours Friday before being sequestered for the weekend.

Presidential Candidate Victor Yushchenko returns to Ukraine after weekend medical tests confirm he was poisoned with Dioxin. Ukraine's prosecutor general has reopened a criminal investigation into the criminal allegations.

To the Forecast Center now and Rob Marciano.

(WEATHER REPORT)

COSTELLO: The White House scrambles this week to find a new nominee for Homeland Security secretary. Former New York City Police Commissioner Bernard Kerik withdrew on Friday, saying a nanny he employed may have been an illegal immigrant.

But is there more to the Kerik flap than Nannygate? Some in New York think so and our correspondent Mary Snow has more details for you.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Bernie, congratulations.

MARY SNOW, CNN CORRESPONDENT: One week the president touted him as being superbly qualified to be Homeland Security director. But within days, Bernard Kerik pulled the plug on his own nomination.

BERNARD KERIK, FMR. NEW YORK POLICE COMMISSIONER: It would have been an embarrassment to the president and his administration. And I just, I couldn't do that.

SNOW: Kerik pins the blame on discovering last week that a former nanny may not have been a legal immigrant and there were tax issues involving her payment.

Saturday a White House official said that Kerik should have brought it to the administration's attention sooner. But some question the White House's role.

PROF. PAUL LIGHT, NEW YORK UNIVERSITY: This is presidential appointments process 101. And it's pretty clear to me that the White House moved much too quickly. Notwithstanding what they're all saying today I think they moved on the basis of Mayor Giuliani's endorsement, the fact that the senior Democrats in New York, endorsed Kerik, they moved ahead without doing their homework.

SNOW: But Kerik was coming under scrutiny before the nanny issue. In New York, where Kerik served as police commissioner, observers say his style may be partly to blame.

MICHAEL GOODWIN, NEW YORK DAILY NEWS: He's not attentive to the normal way of doing business that, frankly, most professionals are. He's not a professional guy. He was a street cop who made it big, frankly, in the last few years. It's just showing that he's not quite ready for this level of scrutiny.

SNOW: Some suggest the very toughness that earned Kerik his stripes and honors may have been the very thing that also added to his failed nomination.

LIGHT: There is a little bit of hubris here when somebody enters the process and says, well basically I can survive it because my life story is so compelling. That is just not enough in the presidential appointments process today. And this is really an issue where Bernie Kerik was his own worst enemy.

SNOW: But while Kerik says he believes he would have been confirmed he also expected the scrutiny and says he didn't want his past to become a distraction -- Mary Snow, CNN, New York.

(END VIDEOTAPE)

COSTELLO: To the "War Room" now. Today, we approach the one- year anniversary since U.S. troops found Saddam Hussein hiding in that spider hole near his hometown of Tikrit. So, what's happening to the deposed leader now?

Let's head live to Atlanta and our Senior International Editor David Clinch.

Good morning, David.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Carol, good morning.

It was a year ago. Time flies in some ways, although of course in Iraq it has felt like quite a long year for the Iraqi people and for the U.S. forces who are there.

What's happening to him? Well, he's still in an undisclosed location in the region, presumed to be in Iraq, in prison, awaiting trial. That trial at one point appeared to be eminent or happening within the next few months, now we're told, by various sources, that that is quite some time away, perhaps, even 2006 before we'll see that trial.

Some good reasons being put out for that. Obviously, they want to get it right. The U.S. and the Iraqis that are involved in that trial process are looking at all the evidence, the massive amount of evidence of Saddam Hussein atrocities over the years. And they want to get it right.

Another problem, you saw a glimpse there, of a judge at a previous hearing he appeared at, they've had a problem keeping judges. When somebody's name gets out there that they're a judge or a lawyer involved in this case, they of course immediately, potentially become targets for the insurgents. And that's a hard thing for people to live with, many people have dropped out.

Of course, the main point, really, when you think about it, a year ago, a lot of people imagining that the capture of Saddam would damage the insurgency. Not stop it necessarily, but damage it. It is fairly clear, I think, over the last few months, particularly that neither the capture of Saddam Hussein, the handover of power, and perhaps, not even these elections that are coming up can really be that watershed in the level of violence.

It is not really clear at this point what will be that -- thing, that elusive thing that will stop the insurgency. Perhaps the capture of now, the new man, Zarqawi, that everybody is talking about.

COSTELLO: Back to Saddam Hussein for just a second, though, because you know there are all sorts of rumors flying around about his mental health, his health in general.

CLINCH: Yes.

COSTELLO: What is he doing in captivity?

CLINCH: Well, he's been writing some poetry, apparently, amongst other things. He wrote books before, wrote poetry before. But his poetry that he's written while he's been in prison described as rubbish by some people who have read it. So, I haven't read it myself.

His mental state, I don't -- I suppose speaks for itself. Not just in terms of what he's been doing in prison, but what he did while he was in power. There have been some suggestions in the last few days that he or some of the other leaders might have been on a hunger strike. When asked, the U.S. military there said Saddam is not on a hunger strike.

Although, they did mention that some others of the Iraqi leadership that is in power have stopped taking main meals. They are described as apparently taking main meals but they are snacking. Now, again, that is not Saddam, we're talking about the others, Iraq leaders who are in prison there.

Saddam, not on hunger strike. Apparently, impatient for this trial to happen, though. Again, perhaps for not at least another year.

COSTELLO: All right. David Clinch, live from Atlanta. Thank you.

CLINCH: All right.

COSTELLO: Still ahead on DAYBREAK, most college kids could care less about the currency market. That is, until the falling dollar cramps their style. At 42 minutes past, Jim Bittermann sits down with struggling coeds in Paris. Oh, poor them.

Plus, a beauty pageant, where getting nipped and tucked can help you win the big prize. That story is at 50 minutes after. But first here is a look at what else is making news this Monday morning.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

COSTELLO: The dollar's recent free fall is already taking a serious toll on the already tight finances of U.S. students studying in Europe. CNN's Jim Bittermann reports on newly impoverished Americans in Paris.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN INT'L. CORRESPONDENT (voice over): If the shrinking dollar is challenging for businessmen, it is a catastrophe for American students studying abroad.

At the American University of Paris, for example, where about a third of the students come either from the U.S. or countries with dollar-based economies, student lifestyles have declined in lockstep with the exchange rate. Books, tuitions, housing, everything is more expensive in dollar terms.

Some students have been forced to call it quits and go home. Sarah Burns from Massachusetts has watched the dollar's decline erode her spending power by a third in the two and a half years she's studied in Paris. Last month, with only two semesters left to graduation, she almost gave up.

SARAH BURNS, JUNIOR: Because I had no money and I had a huge electricity bill. And I decided, I just can't live here anymore.

BITTERMANN: Burns' mother persuaded her to stick it out. But to cut costs as much as possible Burns and her roommates shut down the heat and don't use the dishwasher anymore. Both Burns and classmate, Joe McGinnis from California, say unless someone else is picking up the tab they no longer go out. Not when a cup of coffee now costs the equivalent of $5, or a beer $7. JOE MCGINNIS, JUNIOR: When I go to the supermarket instant coffee, generic brands only. I'm constantly looking for the best deal. If I can stock up on toothpaste at home and bring it over here, I do.

BITTERMANN: McGinnis lives in an attic room scarcely bigger than a closet, without running water. He hopes he can find financial aide to finish his degree here, but he tries not to think what might happen if the dollar continues to fall. But the president of American University, himself an economist, thinks that is exactly what is in store. And he's redirecting recruiting to better insulate the university from currency fluctuation.

GERANDO DELLA PAOLERA, AMERICAN UNIVERSITY OF PARIS: We are trying to be -- so as to attract more people from the Euro area and from Europe, or from the Asian economies that not have been -- having had strong currencies vis-a-vis the dollar.

BITTERMANN: And the university president says there is no room to maneuver on tuition costs. At 20,000 euros the cost of going to school used to be lower in dollar terms than the average private university tuition in the United States. Now, it's more expensive.

(on camera): Like other similar universities overseas, the American University of Paris was founded, in part, to give young Americans a dose of cultural diversity. But that exposure is increasingly expensive for those students who depend on dollars -- Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

COSTELLO: A footnote to this story, the dollar slipped against the yen and the euro in this morning's trading. In European markets right now, $100 U.S. dollars will get you 75.63 euros.

Your news, money, weather and sports, it is 5:44 Eastern. Here's what is all new this morning.

A deadly attack outside the coalition run green zone in Baghdad. Iraqi police say a suicide car bombing has killed six people and wounded 15.

From asteroids to academics, CNN has learned NASA Chief Sean O'Keefe will announce his resignation today. NASA sources say O'Keefe will be the new chancellor at Louisiana State University.

In money news, the world's largest retailer Wal-Mart is struggling during the most critical sales period of the year. The company says sales are below expectations, but it still hopes to see 1 to 3 percent growth for December.

In culture, a couple of super hero adventures have made the American Film Institutes' list of the top 10 movies this year. "Spider-Man 2" and "The Incredibles" are there, along with "The Aviator", which has yet to make it to the big screen. In sports, Charlie Weis, the offensive coordinator with the New England Patriots has signed a six-year contract to coach the Notre Dame football team. The deal is worth, oh, about 2 million bucks a year.

(WEATHER FORECAST)

COSTELLO: Those are the latest headlines for you. Nominations for the 62nd Annual Golden Globe Awards are to be announced just about three hours from now. It's no easy task for the foreign press association to choose from nearly 400 feature films, TV series, miniseries, and foreign language films. Our Sibila Vargas takes a look at some of the critics' choices.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN HOLLYWOOD CORRESPONDENT (voice over): "The Aviator", "Hotel Rwanda", and "Finding Neverland", just some of the movies with buzz that might earn drama nominations. And they're all bio pics.

TOM O'NEIL, "IN TOUCH WEEKLY": Normally bio pics don't do well at the box office or even really at these awards. But this year, they have paid off on both fronts.

VARGAS: Stars of those bio pics should factor into the best actor drama race. Among them, Leonardo DiCaprio portraying Howard Hughes in "The Aviator". Liam Neeson as Alfred Kinsey, Don Cheadle as a real-life Rwandan hero in "Hotel Rwanda".

O'NEIL: You've got a lot of heavyweight contenders here. "Finding Neverland", starring Johnny Depp as the author of "Peter Pan" .

VARGAS: And then there's the Foxx factor. Jamie Foxx could earn a best actor nomination in the comedy musical category for the biopic "Ray". And that's not all, he could be recognized for his supporting work in "Collateral" and for the TV movie, "Redemption: The Stan Tookie Williams Story".

And what about the ladies?

O'NEIL: The leaders for best actress are a surprise this year. Hillary Swank is back and she really coming out swinging as a wannabe boxer in "Million Dollar Baby". And she's really good.

VARGAS: And look for Annette Bening in "Being Julia" and Imelda Staunton in "Vera Drake". But two films that won't factor into the major categories are among the most talked about of the year.

O'NEIL: "Passion of the Christ" is a foreign language film, so that has to go in that category. "Fahrenheit 9/11" is a documentary, it doesn't qualify for best drama picture.

VARGAS: And what about television? O'NEIL: Globe voters tend to overlook departed shows, even great ones. So, don't expect, "Frasier", "Friends" and "Sex and the City" to be nominated in the top series awards.

VARGAS: But expect to see newer hits "Desperate Housewives" and "Lost" to garner some nominations. "Housewives" in the comedy category, "Lost" for drama - Sibila Vargas, CNN, Hollywood.

(END VIDEOTAPE)

COSTELLO: We'll see what movies Tom O'Neil of "In Touch Weekly" likes. He will join us live in the next hour of DAYBREAK.

And still to come on DAYBREAK, at 5, would you be happy to find portable memory under the tree. Ali Velshi will show us why, you should be.

This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK)

COSTELLO: It is not only in the West that people crave perfection, we're talking physical perfection. The desire to look young an flawless has many people turning to plastic surgery. CNN's Ralitsa Vassileva reports on a beauty pageant in China that celebrates going under the knife.

(BEGIN VIDEOTAPE)

RALITSA VASSILEVA, CNN INT'L. CORRESPONDENT (voice over): Along with the flawless make up, the glittering gowns, more than a few nips and tucks, it's not your usual beauty pageant these Chinese women are taking part in. The only requirement to enter is to prove that they didn't come by their good looks naturally.

Miss Plastic Surgery is the latest beauty pageant to be held in China.

WANG WUAN, CONTESTANT (through translator): I hope people will not misunderstand plastic surgery. They shouldn't think, why have these people undergone surgery, even though they are not sick?

VASSILEVA: Organizers hope the pageant will show plastic surgery in a good light.

WAN WU, PAGEANT ORGANIZER (through translator): I hope this pageant can reflect women's strong desire to beautify themselves and seek after their own unique style.

VASSILEVA: Banned until just last year, in the Communist nation, China has taken to beauty pageants. It hosted Miss World again, this year. And even made a bid for Miss Universe in 2005.

Cosmetic surgery is also rapidly growing business in the country. The winner will be crowned next Saturday from one of 20 contestants, age 17 to 62. Including this one who is extreme make over included a sex change, if the judges find she's a valid contestant.

Ralitsa Vassileva, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: All new in the next hour of DAYBREAK, politics and poison, they don't mix. We'll speak with Victor Yushchenko's physician, Dr. Michael Zimpher (ph).

This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK)

COSTELLO: You're in the mood now, aren't you? All right, holiday shoppers, we may just have the first gadget that everyone on your shopping list can actually use. It is portable computer memory. Pretty exciting, it's durable, you can take it anywhere. It's universal and you don't need batteries. Ali Velshi has more.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPONDENT (voice over): Take digital pictures? A good quality digital photo takes up about 1 megabyte of storage space. How about downloading music? That takes up about 1 megabyte per minute.

Flash drives make today's bigger computer files easy to care around.

(on camera): OK, let's start with how to choose. Don't be intimidated by what they're called. Some people call them flash drives, some people call them pen drives, key drives, thumb drives, they all do the same thing. They're all storage. Look at this, 13 bucks for 16 megabytes.

Well, 16 megs, that about the equivalent of about nine floppies. But what if you have a heavier user on the list? Why don't you try this? Two gigabytes for $249; two gigs is more memory than most computers came with five years ago. This is about 20 minutes of live video. It is also the equivalent of about 1400 floppies.

(voice over): Or 2200 photos, or about 500 songs. In fact, a quick check of the web turned up several 4 gigabyte USB flash drives.

(on camera): OK, you know how to choose it, let me show you how to use it. It is really simple. Let's say I have this picture on the computer and I want to carry it around with me. I want to put it on my parents computer somewhere else. So, all I do is, I take the flash drive and I want to put it into one of the computer's USB ports. Every computer comes with them now.

So, you just take it and you stick it in like so. Now, look at what happens on the screen. Removable disk E, that's the flash drive. So, you take the file you are looking for, that one there. And you just drag it down and now that picture is on that drive. Now, I take it out and I take it anywhere I want to go. And while flash drives are good on the road, they are also useful it you are not going any where, because they are good for saving important information. You can store valuable documents away from your computer -- Ali Velshi, CNN, New York.

(END VIDEOTAPE)

COSTELLO: There you have it. If you like to share downloaded material you'll want to pay keen attention to a Supreme Court case today. The Justices will decide if Internet file sharing services should be held responsible if their customers illegally share songs and movies. This case could determine the limits of copyright law, in the digital age.

That brings us to our e-mail question of the morning. Should those companies be held liable? And you're obviously awake, because have gotten some great answers so far, so allow me to read some of them right now.

This is from Mark in Newburg, New York: "I think personal responsibility has taken a huge hit in this country in recent years. And a ruling like this could be the capper. Should a car company be liable if its cars are used for illegal ventures by end-users?" Very good point.

This is from Jason, from Alberta, "Common sense makes me say it is the individual who is responsible for his or her actions, not the software or Internet company that makes at particular action possible.

And this one, "File sharing has been going on since the 1960 when cassette tape recorders came out. People have been copying LP records, 8-track tapes, other cassettes and even CDs ever since. Should the software companies be held responsible for the people that use the software? No. The manufacturers should just get over it."

COSTELLO: The next hour of DAYBREAK starts right after this break. Stick around.

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 December 13, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you. Welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello.
"Now In The News": In Iraq a suicide car bombing just outside the green zone in Baghdad leaves six people dead and another 15 wounded. No U.S. casualties reported. Iraq's interim government is based in the green zone, as is the U.S. embassy.

NASA Administrator Sean O'Keefe is expected to announce his resignation today. CNN has learned that O'Keefe will accept an offer to become chancellor at Louisiana State University.

A California jury resumes deliberations today in the penalty phase of Scott Peterson's murder trail. The panel met for nine hours Friday before being sequestered for the weekend.

Presidential Candidate Victor Yushchenko returns to Ukraine after weekend medical tests confirm he was poisoned with Dioxin. Ukraine's prosecutor general has reopened a criminal investigation into the criminal allegations.

To the Forecast Center now and Rob Marciano.

(WEATHER REPORT)

COSTELLO: The White House scrambles this week to find a new nominee for Homeland Security secretary. Former New York City Police Commissioner Bernard Kerik withdrew on Friday, saying a nanny he employed may have been an illegal immigrant.

But is there more to the Kerik flap than Nannygate? Some in New York think so and our correspondent Mary Snow has more details for you.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Bernie, congratulations.

MARY SNOW, CNN CORRESPONDENT: One week the president touted him as being superbly qualified to be Homeland Security director. But within days, Bernard Kerik pulled the plug on his own nomination.

BERNARD KERIK, FMR. NEW YORK POLICE COMMISSIONER: It would have been an embarrassment to the president and his administration. And I just, I couldn't do that.

SNOW: Kerik pins the blame on discovering last week that a former nanny may not have been a legal immigrant and there were tax issues involving her payment.

Saturday a White House official said that Kerik should have brought it to the administration's attention sooner. But some question the White House's role.

PROF. PAUL LIGHT, NEW YORK UNIVERSITY: This is presidential appointments process 101. And it's pretty clear to me that the White House moved much too quickly. Notwithstanding what they're all saying today I think they moved on the basis of Mayor Giuliani's endorsement, the fact that the senior Democrats in New York, endorsed Kerik, they moved ahead without doing their homework.

SNOW: But Kerik was coming under scrutiny before the nanny issue. In New York, where Kerik served as police commissioner, observers say his style may be partly to blame.

MICHAEL GOODWIN, NEW YORK DAILY NEWS: He's not attentive to the normal way of doing business that, frankly, most professionals are. He's not a professional guy. He was a street cop who made it big, frankly, in the last few years. It's just showing that he's not quite ready for this level of scrutiny.

SNOW: Some suggest the very toughness that earned Kerik his stripes and honors may have been the very thing that also added to his failed nomination.

LIGHT: There is a little bit of hubris here when somebody enters the process and says, well basically I can survive it because my life story is so compelling. That is just not enough in the presidential appointments process today. And this is really an issue where Bernie Kerik was his own worst enemy.

SNOW: But while Kerik says he believes he would have been confirmed he also expected the scrutiny and says he didn't want his past to become a distraction -- Mary Snow, CNN, New York.

(END VIDEOTAPE)

COSTELLO: To the "War Room" now. Today, we approach the one- year anniversary since U.S. troops found Saddam Hussein hiding in that spider hole near his hometown of Tikrit. So, what's happening to the deposed leader now?

Let's head live to Atlanta and our Senior International Editor David Clinch.

Good morning, David.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Carol, good morning.

It was a year ago. Time flies in some ways, although of course in Iraq it has felt like quite a long year for the Iraqi people and for the U.S. forces who are there.

What's happening to him? Well, he's still in an undisclosed location in the region, presumed to be in Iraq, in prison, awaiting trial. That trial at one point appeared to be eminent or happening within the next few months, now we're told, by various sources, that that is quite some time away, perhaps, even 2006 before we'll see that trial.

Some good reasons being put out for that. Obviously, they want to get it right. The U.S. and the Iraqis that are involved in that trial process are looking at all the evidence, the massive amount of evidence of Saddam Hussein atrocities over the years. And they want to get it right.

Another problem, you saw a glimpse there, of a judge at a previous hearing he appeared at, they've had a problem keeping judges. When somebody's name gets out there that they're a judge or a lawyer involved in this case, they of course immediately, potentially become targets for the insurgents. And that's a hard thing for people to live with, many people have dropped out.

Of course, the main point, really, when you think about it, a year ago, a lot of people imagining that the capture of Saddam would damage the insurgency. Not stop it necessarily, but damage it. It is fairly clear, I think, over the last few months, particularly that neither the capture of Saddam Hussein, the handover of power, and perhaps, not even these elections that are coming up can really be that watershed in the level of violence.

It is not really clear at this point what will be that -- thing, that elusive thing that will stop the insurgency. Perhaps the capture of now, the new man, Zarqawi, that everybody is talking about.

COSTELLO: Back to Saddam Hussein for just a second, though, because you know there are all sorts of rumors flying around about his mental health, his health in general.

CLINCH: Yes.

COSTELLO: What is he doing in captivity?

CLINCH: Well, he's been writing some poetry, apparently, amongst other things. He wrote books before, wrote poetry before. But his poetry that he's written while he's been in prison described as rubbish by some people who have read it. So, I haven't read it myself.

His mental state, I don't -- I suppose speaks for itself. Not just in terms of what he's been doing in prison, but what he did while he was in power. There have been some suggestions in the last few days that he or some of the other leaders might have been on a hunger strike. When asked, the U.S. military there said Saddam is not on a hunger strike.

Although, they did mention that some others of the Iraqi leadership that is in power have stopped taking main meals. They are described as apparently taking main meals but they are snacking. Now, again, that is not Saddam, we're talking about the others, Iraq leaders who are in prison there.

Saddam, not on hunger strike. Apparently, impatient for this trial to happen, though. Again, perhaps for not at least another year.

COSTELLO: All right. David Clinch, live from Atlanta. Thank you.

CLINCH: All right.

COSTELLO: Still ahead on DAYBREAK, most college kids could care less about the currency market. That is, until the falling dollar cramps their style. At 42 minutes past, Jim Bittermann sits down with struggling coeds in Paris. Oh, poor them.

Plus, a beauty pageant, where getting nipped and tucked can help you win the big prize. That story is at 50 minutes after. But first here is a look at what else is making news this Monday morning.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

COSTELLO: The dollar's recent free fall is already taking a serious toll on the already tight finances of U.S. students studying in Europe. CNN's Jim Bittermann reports on newly impoverished Americans in Paris.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN INT'L. CORRESPONDENT (voice over): If the shrinking dollar is challenging for businessmen, it is a catastrophe for American students studying abroad.

At the American University of Paris, for example, where about a third of the students come either from the U.S. or countries with dollar-based economies, student lifestyles have declined in lockstep with the exchange rate. Books, tuitions, housing, everything is more expensive in dollar terms.

Some students have been forced to call it quits and go home. Sarah Burns from Massachusetts has watched the dollar's decline erode her spending power by a third in the two and a half years she's studied in Paris. Last month, with only two semesters left to graduation, she almost gave up.

SARAH BURNS, JUNIOR: Because I had no money and I had a huge electricity bill. And I decided, I just can't live here anymore.

BITTERMANN: Burns' mother persuaded her to stick it out. But to cut costs as much as possible Burns and her roommates shut down the heat and don't use the dishwasher anymore. Both Burns and classmate, Joe McGinnis from California, say unless someone else is picking up the tab they no longer go out. Not when a cup of coffee now costs the equivalent of $5, or a beer $7. JOE MCGINNIS, JUNIOR: When I go to the supermarket instant coffee, generic brands only. I'm constantly looking for the best deal. If I can stock up on toothpaste at home and bring it over here, I do.

BITTERMANN: McGinnis lives in an attic room scarcely bigger than a closet, without running water. He hopes he can find financial aide to finish his degree here, but he tries not to think what might happen if the dollar continues to fall. But the president of American University, himself an economist, thinks that is exactly what is in store. And he's redirecting recruiting to better insulate the university from currency fluctuation.

GERANDO DELLA PAOLERA, AMERICAN UNIVERSITY OF PARIS: We are trying to be -- so as to attract more people from the Euro area and from Europe, or from the Asian economies that not have been -- having had strong currencies vis-a-vis the dollar.

BITTERMANN: And the university president says there is no room to maneuver on tuition costs. At 20,000 euros the cost of going to school used to be lower in dollar terms than the average private university tuition in the United States. Now, it's more expensive.

(on camera): Like other similar universities overseas, the American University of Paris was founded, in part, to give young Americans a dose of cultural diversity. But that exposure is increasingly expensive for those students who depend on dollars -- Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

COSTELLO: A footnote to this story, the dollar slipped against the yen and the euro in this morning's trading. In European markets right now, $100 U.S. dollars will get you 75.63 euros.

Your news, money, weather and sports, it is 5:44 Eastern. Here's what is all new this morning.

A deadly attack outside the coalition run green zone in Baghdad. Iraqi police say a suicide car bombing has killed six people and wounded 15.

From asteroids to academics, CNN has learned NASA Chief Sean O'Keefe will announce his resignation today. NASA sources say O'Keefe will be the new chancellor at Louisiana State University.

In money news, the world's largest retailer Wal-Mart is struggling during the most critical sales period of the year. The company says sales are below expectations, but it still hopes to see 1 to 3 percent growth for December.

In culture, a couple of super hero adventures have made the American Film Institutes' list of the top 10 movies this year. "Spider-Man 2" and "The Incredibles" are there, along with "The Aviator", which has yet to make it to the big screen. In sports, Charlie Weis, the offensive coordinator with the New England Patriots has signed a six-year contract to coach the Notre Dame football team. The deal is worth, oh, about 2 million bucks a year.

(WEATHER FORECAST)

COSTELLO: Those are the latest headlines for you. Nominations for the 62nd Annual Golden Globe Awards are to be announced just about three hours from now. It's no easy task for the foreign press association to choose from nearly 400 feature films, TV series, miniseries, and foreign language films. Our Sibila Vargas takes a look at some of the critics' choices.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN HOLLYWOOD CORRESPONDENT (voice over): "The Aviator", "Hotel Rwanda", and "Finding Neverland", just some of the movies with buzz that might earn drama nominations. And they're all bio pics.

TOM O'NEIL, "IN TOUCH WEEKLY": Normally bio pics don't do well at the box office or even really at these awards. But this year, they have paid off on both fronts.

VARGAS: Stars of those bio pics should factor into the best actor drama race. Among them, Leonardo DiCaprio portraying Howard Hughes in "The Aviator". Liam Neeson as Alfred Kinsey, Don Cheadle as a real-life Rwandan hero in "Hotel Rwanda".

O'NEIL: You've got a lot of heavyweight contenders here. "Finding Neverland", starring Johnny Depp as the author of "Peter Pan" .

VARGAS: And then there's the Foxx factor. Jamie Foxx could earn a best actor nomination in the comedy musical category for the biopic "Ray". And that's not all, he could be recognized for his supporting work in "Collateral" and for the TV movie, "Redemption: The Stan Tookie Williams Story".

And what about the ladies?

O'NEIL: The leaders for best actress are a surprise this year. Hillary Swank is back and she really coming out swinging as a wannabe boxer in "Million Dollar Baby". And she's really good.

VARGAS: And look for Annette Bening in "Being Julia" and Imelda Staunton in "Vera Drake". But two films that won't factor into the major categories are among the most talked about of the year.

O'NEIL: "Passion of the Christ" is a foreign language film, so that has to go in that category. "Fahrenheit 9/11" is a documentary, it doesn't qualify for best drama picture.

VARGAS: And what about television? O'NEIL: Globe voters tend to overlook departed shows, even great ones. So, don't expect, "Frasier", "Friends" and "Sex and the City" to be nominated in the top series awards.

VARGAS: But expect to see newer hits "Desperate Housewives" and "Lost" to garner some nominations. "Housewives" in the comedy category, "Lost" for drama - Sibila Vargas, CNN, Hollywood.

(END VIDEOTAPE)

COSTELLO: We'll see what movies Tom O'Neil of "In Touch Weekly" likes. He will join us live in the next hour of DAYBREAK.

And still to come on DAYBREAK, at 5, would you be happy to find portable memory under the tree. Ali Velshi will show us why, you should be.

This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK)

COSTELLO: It is not only in the West that people crave perfection, we're talking physical perfection. The desire to look young an flawless has many people turning to plastic surgery. CNN's Ralitsa Vassileva reports on a beauty pageant in China that celebrates going under the knife.

(BEGIN VIDEOTAPE)

RALITSA VASSILEVA, CNN INT'L. CORRESPONDENT (voice over): Along with the flawless make up, the glittering gowns, more than a few nips and tucks, it's not your usual beauty pageant these Chinese women are taking part in. The only requirement to enter is to prove that they didn't come by their good looks naturally.

Miss Plastic Surgery is the latest beauty pageant to be held in China.

WANG WUAN, CONTESTANT (through translator): I hope people will not misunderstand plastic surgery. They shouldn't think, why have these people undergone surgery, even though they are not sick?

VASSILEVA: Organizers hope the pageant will show plastic surgery in a good light.

WAN WU, PAGEANT ORGANIZER (through translator): I hope this pageant can reflect women's strong desire to beautify themselves and seek after their own unique style.

VASSILEVA: Banned until just last year, in the Communist nation, China has taken to beauty pageants. It hosted Miss World again, this year. And even made a bid for Miss Universe in 2005.

Cosmetic surgery is also rapidly growing business in the country. The winner will be crowned next Saturday from one of 20 contestants, age 17 to 62. Including this one who is extreme make over included a sex change, if the judges find she's a valid contestant.

Ralitsa Vassileva, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: All new in the next hour of DAYBREAK, politics and poison, they don't mix. We'll speak with Victor Yushchenko's physician, Dr. Michael Zimpher (ph).

This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK)

COSTELLO: You're in the mood now, aren't you? All right, holiday shoppers, we may just have the first gadget that everyone on your shopping list can actually use. It is portable computer memory. Pretty exciting, it's durable, you can take it anywhere. It's universal and you don't need batteries. Ali Velshi has more.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPONDENT (voice over): Take digital pictures? A good quality digital photo takes up about 1 megabyte of storage space. How about downloading music? That takes up about 1 megabyte per minute.

Flash drives make today's bigger computer files easy to care around.

(on camera): OK, let's start with how to choose. Don't be intimidated by what they're called. Some people call them flash drives, some people call them pen drives, key drives, thumb drives, they all do the same thing. They're all storage. Look at this, 13 bucks for 16 megabytes.

Well, 16 megs, that about the equivalent of about nine floppies. But what if you have a heavier user on the list? Why don't you try this? Two gigabytes for $249; two gigs is more memory than most computers came with five years ago. This is about 20 minutes of live video. It is also the equivalent of about 1400 floppies.

(voice over): Or 2200 photos, or about 500 songs. In fact, a quick check of the web turned up several 4 gigabyte USB flash drives.

(on camera): OK, you know how to choose it, let me show you how to use it. It is really simple. Let's say I have this picture on the computer and I want to carry it around with me. I want to put it on my parents computer somewhere else. So, all I do is, I take the flash drive and I want to put it into one of the computer's USB ports. Every computer comes with them now.

So, you just take it and you stick it in like so. Now, look at what happens on the screen. Removable disk E, that's the flash drive. So, you take the file you are looking for, that one there. And you just drag it down and now that picture is on that drive. Now, I take it out and I take it anywhere I want to go. And while flash drives are good on the road, they are also useful it you are not going any where, because they are good for saving important information. You can store valuable documents away from your computer -- Ali Velshi, CNN, New York.

(END VIDEOTAPE)

COSTELLO: There you have it. If you like to share downloaded material you'll want to pay keen attention to a Supreme Court case today. The Justices will decide if Internet file sharing services should be held responsible if their customers illegally share songs and movies. This case could determine the limits of copyright law, in the digital age.

That brings us to our e-mail question of the morning. Should those companies be held liable? And you're obviously awake, because have gotten some great answers so far, so allow me to read some of them right now.

This is from Mark in Newburg, New York: "I think personal responsibility has taken a huge hit in this country in recent years. And a ruling like this could be the capper. Should a car company be liable if its cars are used for illegal ventures by end-users?" Very good point.

This is from Jason, from Alberta, "Common sense makes me say it is the individual who is responsible for his or her actions, not the software or Internet company that makes at particular action possible.

And this one, "File sharing has been going on since the 1960 when cassette tape recorders came out. People have been copying LP records, 8-track tapes, other cassettes and even CDs ever since. Should the software companies be held responsible for the people that use the software? No. The manufacturers should just get over it."

COSTELLO: The next hour of DAYBREAK starts right after this break. Stick around.

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