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CNN Live At Daybreak

Sharon-Abbas Talks; 'America's Voice';

Aired February 08, 2005 - 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: Good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

President Bush takes his budget on the road today. He's pushing his nearly $2.6 trillion package at the Detroit Economic Club today.

Secretary of State Condoleezza Rice is in Rome meeting with a representative of the Vatican. Coming up in four and a half hours at 11:00 Eastern, she delivers a major international policy address in Paris.

The scientist who cloned Dolly the sheep now has a license to clone human embryos and experiment on them. This is the second time the British government has approved such a licensing since it legalized cloning research back in 2001. The scientist plans to conduct research involving therapeutic cloning, the type that does not result in a baby.

The good times are rolling in this morning in the Big Easy. This is Fat Tuesday in Cajun country. New Orleans is filled with partygoers for Mardi Gras. In just about 20 minutes, we will very bravely take you live to New Orleans.

(WEATHER REPORT)

COSTELLO: Topping the news this half-hour, Israeli and Palestinian officials say they're expecting a cease-fire declaration. High-level talks are under way right now between the two sides.

Let's go live to the summit site in Sharm el-Sheikh, Egypt, and our own John Vause.

Good morning -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

We were expecting those significant statements to be delivered around now -- one from the president of the Palestinian Authority, Mahmoud Abbas, the other from the Israeli prime minister, Ariel Sharon. But we believe that it may be delayed for an hour or so.

There should be no surprises here. Both sides have signed off on what the other is going to say. And that is, as far as the Palestinians are concerned, a declaration from Mahmoud Abbas for an end to attacks on Israelis everywhere, effectively an end to the Palestinian intifada or uprising.

And from the Israeli side, Ariel Sharon is then expected to say there is quiet, that Israel will cease all military activity in the occupied Palestinian territories.

Like I said, there should be no surprises. Both sides have signed off on this. They've been working on this for a number of weeks.

There will be no formal signing ceremony. And, in fact, you may not even hear the word, "cease-fire." Over the last four years, Carol, 10 cease-fires have come and gone -- Carol.

COSTELLO: I was just going to ask you a question about that. I mean, there can be no guarantee that the terrorists will cooperated.

VAUSE: No guarantees on that. But there is definitely a change in the mood here, one that we've noticed since the death of Yasser Arafat on November 11 and the election of Mahmoud Abbas as the president of the Palestinian Authority. There is talk of hope, talk of expectations. And, really, what we've noticed on both the Israeli and the Palestinian sides is that there is a great deal of weariness with the current conflict that has left almost 5,000 people dead.

So, a lot has changed, and there is a lot of hope, a lot of sort of wary optimism in all of this -- Carol.

COSTELLO: And that is good to hear. John Vause live in Egypt this morning.

Another place getting lots of attention right now is Iran. Iranian Nobel Peace Prize winner Shirin Ebadi is urging the Bush administration not to attack her country. She co-wrote an op-ed piece in today's "New York Times" saying -- and I quote: "American hypocrisy doesn't help, given the longstanding willingness of the American government to overlook abuses of human rights, particularly women's rights, by close allies in the Middle East like Saudi Arabia. It's hard not to see the Bush administration's focus on human rights violations in Iran as a cloak for its larger strategic interests."

If you want to read more, it's in "The New York Times" this morning.

What do the American people think of those strategic interests, as President Bush grapples with thorny issues like Iraq and Social Security reform? Has he lost or gained ground?

For the latest numbers, let's head live to Princeton, New Jersey, and Frank Newport of Gallup.

Good morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.

Overall, George W. Bush's job approval rating is up. In fact, it is now -- that's on the far right side here -- at 57 percent, and that's the highest we've seen George W. Bush's job approval rating by a point or 2 since way back in January of last year. So, the highest in 12 or 13 months, although he, let's say, after the election was at 55 percent. So, it's not significantly different, but it is a big uptick. We were at 51 percent just in January. So, there has been a gain.

Let's look at job approval ratings for how Bush is handling some key issues of his administration. Iraq up 8 points. That's a real key there from where we had measured it previously in January. How is he handling international foreign affairs? Up 4 points.

However, domestically, not much change. Social Security, the major push of the president, his approval on that only up 2 points from January. And, Carol, when we compare how he's handling the economy now with what the public told us in January, no change at all.

COSTELLO: How do Americans feel about the president's plans for Social Security, Frank?

NEWPORT: Well, Social Security, of course, has been the major component of what George W. Bush has been focusing on, particularly since last Wednesday, which was his State of the Union address. Then he went through five states barnstorming and what have you. But all of our data show not much change at all in what the American public thinks about Social Security.

A couple of our measures didn't move at all. Here's just a basic measure: Do you favor or oppose George W. Bush's Social Security reforms? And 50 percent say no, 44 percent said favor. There's still a big age difference in this that we have found all along as well. These are, oh, young people to older Americans, and notice the red bar gets higher. That's the "oppose" bar as you get older.

So, I don't see in our data any sign that the president has gained on Social Security. I think that big increase in job approval rating, Carol, was most likely due to the favorable perceptions on the part of the American public of the Iraqi elections a week ago Sunday.

COSTELLO: Well, he's hitting the road today, so we'll see if that helps any with the numbers on Social Security. Frank Newport live in Princeton, New Jersey. Thanks so much.

Sentencing is set for next week in the case of defrocked Catholic priest Paul Shanley. Shanley faces life in prison after a jury found him guilty of repeatedly abusing a young boy in his parish back in the 1980s. The district attorney says Shanley's accuser is overjoyed at the verdict. And other victims of priest abuse say they feel vindicated.

(BEGIN VIDEO CLIP)

"BILL", ANONYMOUS ABUSE SURVIVOR: Oh, I was certain that he would walk free, and I'm in shock. I'm in shock. But, you know, the right thing happened.

ANN HAGAN WEBB, SHAP: Only 2 percent of the priests ever get inside a courtroom, because of the statute of limitations. And we need to change those laws so that history doesn't repeat itself, because mark my words, it will if we don't change the system.

(END VIDEO CLIP)

COSTELLO: Shanley's bail was revoked, and he was immediately led off to jail after the verdict was read.

The case against Shanley has had a particularly tough impact on the Catholic community of Boston. CNN's Soledad O'Brien will be talking to one of the key players in the case coming up on "AMERICAN MORNING."

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Carol.

That's absolutely right. This morning, we're going to talk to the attorney in the case. Of course, as you well know, this case relied very heavily on recovered and repressed memories. So, we're going to ask the district attorney just how difficult it was to get the jurors to believe the accuser in this case.

Also, you spoke just a moment ago about some of the other alleged victims in this case, where the statute of limitations had run out. We're going to talk to one of those victims this morning, alleged victims, and find out if she feels vindicated by what was done in this particular case.

That's ahead this morning on "AMERICAN MORNING," Carol. We'll see you in just a few minutes.

COSTELLO: Twenty minutes to be exact. Thank you, Soledad.

In news across America now, investigators have moved a crashed corporate jet to a warehouse in New Jersey. The plane skidded off the runway at Teterboro Airport last week and hit a warehouse. The pilot and co-pilot are still hospitalized, but all eight passengers got out of that burning plane, thanks to one quick-thinking flight attendant.

(BEGIN VIDEO CLIP)

ANGELICA CALAD GOMEZ, FLIGHT ATTENDANT: I remember unbuckling myself right away and just going through that front door, because when I got up, I realized that there was smoking coming out of the back of the airplane, meaning that I couldn't evacuate through the back. I went to the front. Passengers got up, and I'm thanking so much the passengers that, you know, they were all men, and they were able to get up and open that door, because the door was stuck. And if I wouldn't had those passengers on the plane, there is no way that I would be here talking about this right now.

(END VIDEO CLIP)

COSTELLO: The cause of the crash is still under investigation this morning. An elementary school teacher in Tennessee is facing charges that she had an ongoing sexual affair with one of her 13-year-old male students. Twenty-seven-year-old Pamela Rogers Turner is charged with sexual battery by an authority figure and statutory rape. Prosecutors say some of the incidents took place at the school.

Executives from W.R. Grace Company face charges for threatening the health of 8,000 residents of a Montana town. The Justice Department alleges that seven executives knew the health dangers from their asbestos mine in Libby, Montana, but hid the risks from the public. The deaths of 200 residents are being blamed on asbestos. The company denies any criminal wrongdoing.

A former company chief in hot water. Now, we hear how water coffee, beans and even cigarettes played into the testimony at his trial.

Here's a look at what else is making news this Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.

Israeli and Palestinian leaders are expected to announce a formal cease-fire at a Mideast summit in Egypt today. If it holds, it would end more than four years of fighting and pave the way to revive the American-backed road map to peace plan.

Pope John Paul II has spent almost a week in a Rome hospital. His doctors say his condition is improving, but there's a bit of controversy. A top Vatican official was asked if the pope would consider stepping down. His reply? Let's leave that hypothesis up to the pope's conscious.

In money news, the proposed merger between Riggs National Corporation and PNC Financial Services has collapsed. The deal went south after PNC cut its takeover bid by 20 percent. Riggs turned around and sued PNC.

In culture, Denzel Washington was among several people eulogizing the late actors Ossie Davis. They came at an event in New York marking the release of the 1992 movie "Malcolm X" on DVD. Davis died last week at the age of 87.

In sports, outfielder Magglio Ordonez officially inked a five- year, $75 million deal with the Detroit Tigers. And, oh, I'm so happy about this. He actually missed most of last season with a knee injury, but I'm sure it's better now. If he has anymore health problems, the Tigers can void the deal after one year. Ooh. The Tigers may be contenders this year, Chad.

(WEATHER REPORT)

COSTELLO: We have a little update on Ellen MacArthur, Chad. CHAD MYERS, CNN METEOROLOGIST: Her sail is down now. She's being towed in, Carol. Sail around the world record is finally over for her.

COSTELLO: She is amazing. These are live pictures from Falmouth, England. Ellen MacArthur is a woman who sailed around the world in a record 71 days, and she did it all by herself.

MYERS: In a...

COSTELLO: Everybody has been waiting for her to get off that boat and come on to shore.

MYERS: I'm sure she can't wait to get back on land as well.

COSTELLO: But she only slept four hours a night, but she could only do it in 30-minute increments.

MYERS: Well, because she never took down the sail. She allowed the boat to sail even when she was sleeping, which is, of course, a little bit dangerous. You don't know where you're headed, especially at night, you can't really see very much. And with the sail up, you're still moving very good, making way at times at 22 knots in this 75-foot trimaran. And let me tell you, folks, if you don't believe it, 22 miles an hour, whatever, 24 miles an hour, is flying in a sailboat. It is screaming!

COSTELLO: She looks pretty good, though, doesn't she?

MYERS: She does. And...

COSTELLO: She looks healthy and hardy and that's amazing.

MYERS: A lot of folks are saying that she's a woman. The man that she broke -- Francis, the guy that she broke the record from, he was saying that she was much more prepared for this. He had damage to sailboat, and plus women are better prepared for this, because they do sleep deprivation much better than men can.

COSTELLO: I like that. I don't know if I believe it, but I like it.

MYERS: Ask any new mom.

COSTELLO: Exactly. I'll ask your wife, Sally.

MYERS: OK. Oh, there you go.

COSTELLO: You know, that summit in Sharm el-Sheikh, Egypt, is still going on. It holds promise for the people of many Middle East nations. Soledad O'Brien will be talking about that with a man who knows the situation well a little later on "AMERICAN MORNING."

Good morning -- Soledad.

O'BRIEN: And good morning to you again, Carol. One of the headlines, of course, is big news this morning in the Middle East, the Israeli and Palestinian leaders announcing a cease- fire. It comes at the end of the summit. They're meeting in Egypt, as you pointed out. So, the big question, of course, this morning is just how significant is it? We've heard about cease-fires before. Plus, is it really likely to stick? We're going to take you live Egypt for the very latest on that. And also we'll talk to a professor specializing in Mideast studies and find out what he thinks about the prospects for peace now.

That and much, much more ahead on "AMERICAN MORNING." And talk about that other story you were just chatting about, I can tell you women are so much better at sleep deprivation than men. I absolutely agree.

COSTELLO: I was just thinking that we must be conditioned, because we have children. And, boy, you know what it is to have children.

O'BRIEN: Who sleeps? You don't sleep.

COSTELLO: Never. Never.

O'BRIEN: Sally is not sleeping, and I'm not sleeping. And women everywhere are not sleeping.

COSTELLO: True.

O'BRIEN: Congratulations to her, by the way. I'm so excited for her.

COSTELLO: I know. I can't wait until she comes, like, on shore, I guess, and has something to say.

O'BRIEN: Yes, that's great.

COSTELLO: Because it will be interesting to see what her experiences were out there for 71 days. Thank you, Soledad.

O'BRIEN: Sure thing.

COSTELLO: Still to come on DAYBREAK, a big day for the Big Easy. Mardi Gras will be in full swing in a matter of hours. You are looking live at the streets of New Orleans this morning, and a couple of people are out. And it is raining there. But Chad will have the forecast for you later.

And the amazing rescue that only happens in a small town where everyone looks out for the other. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The international markets are mixed this morning. Japan's Nikkei closes down more than 9 points, Britain's FTSE trading up 9 points. The German DAX is up 7.5 points. It's time for a little "Business Buzz" now. The latest testimony in the WorldCom trial is sure to have people around the water cooler talking this morning.

Carrie Lee is live at the Nasdaq Marketsite with all of the juicy details.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: And, you know, Carol, part of the testimony here involving water cooler talk. We'll get to that in a second. But a very interesting day of testimony in the trial of former WorldCom CEO Bernard Ebbers.

First, G. Brady Connor (ph), who is a former budget analyst, testified. And, according to "The Washington Post" and other papers, he outlined some unusual plans by Ebbers to save money involving monitoring the length of cigarette breaks and lunch breaks to see if people were taking too long. Ebbers also reportedly monitored the parking lot to prevent employee lateness.

Connor (ph) says Ebbers would also fill the water coolers with tap water to save money. He said employees didn't know the difference.

Also, he would cut -- count, rather, coffee bags and filters, and if they didn't match up, Ebbers would assume people were stealing coffee.

Now, also former WorldCom Chief Financial Officer Scott Sullivan, the prosecution's star witness, took the stand. And he corroborated that Ebbers was a micro-manager, had a good grasp of accounting concepts, and so refuting Ebbers' defense that he wasn't aware of the company's financial problems.

Also, to stave off attacks on his credibility, Sullivan admitted to drug use in the past. So, certainly a juicy trial, Carol, that is continuing today.

COSTELLO: What kind of drug abuse?

LEE: Well, he did have a drunken driving conviction back in 1984. Also admitted to using marijuana and cocaine a couple of times a year from 1989 through 2000.

COSTELLO: And didn't Mr. Ebbers say, you know, he couldn't understand accounting, because he majored in physical education in college?

LEE: That's right. That's right. Well, what we heard yesterday certainly seems to refute that.

Now, of course, Sullivan has a vested interest in pointing the finger at Ebbers, so that he gets a lighter sentence. But certainly some very interesting developments.

COSTELLO: Very interesting. I can't believe he put tap water in the water -- that's just wrong.

LEE: We would never do that at CNN, right?

COSTELLO: Oh, I hope not. How could you prove it? We'll be doing water testing later today.

LEE: There you go.

COSTELLO: There are journalists here. Thank you, Carrie Lee.

LEE: OK.

COSTELLO: This is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: Taking a look at the morning headlines. Actually, let's take a look at New Orleans this morning, Chad. It looks kind of wet there.

MYERS: It is. A couple of showers around this morning. They'll get to a high of 71. There should be plenty of reveling going on. It's also punchky (ph) day in Detroit. I'll tell you what, a lot of folks are getting ready for this Fat Tuesday, Carol. Can you believe there's that many people outside already?

COSTELLO: Yes, I can.

MYERS: Are they still there?

COSTELLO: (UNINTELLIGIBLE) in New Orleans.

MYERS: Are they still there from last night? Or are they already there this morning?

COSTELLO: I think they're still there from last night. That would be my guess.

MYERS: Probably, yes.

COSTELLO: Yes. I was looking at the morning headlines in various newspapers this morning, Chad. And there's an interesting thing in "The Washington Post" as it applies to the Super Bowl in the TV column.

MYERS: Oh, right.

COSTELLO: Let's see. It was Sunday Super Bowl scored the game's smallest audience in six years.

MYERS: Well, we went over that again. We went over that. We talked about that. I think a lot of folks just gathered up and watched only one TV.

COSTELLO: Yes, right.

MYERS: I had 14 people watching my TV.

COSTELLO: Well, it says more than 86 million viewers, like, watched the Super Bowl. So, it wasn't, like, no one was watching. But the interesting thing was TiVo reported yesterday that the most replayed moment during a Super Bowl commercial was when a strap snapped on the skimpy top of a buxom bimbette (ph) testifying before congressional decency police about her upcoming performance for a godaddy.com ad.

MYERS: I thought the part where the one senator there on the panel that had his oxygen mask on was one of the funniest parts of any commercial of all time. I mean, it wasn't funny because that was a real event. He was really there, but not during the commercial, of course, but during real testimony.

COSTELLO: Oh, Chad.

MYERS: And then they canceled. They canceled the next commercial that was supposed to run in the second half. The NFL said, no, you can't run the second one.

COSTELLO: Oh, about godaddy.com, because it was much more racy than the one that played. But it was just interesting that they tried to keep everything clean and decent, and the most TiVo'd moment was that one.

We have to say goodbye. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

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 February 8, 2005 - 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: Good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

President Bush takes his budget on the road today. He's pushing his nearly $2.6 trillion package at the Detroit Economic Club today.

Secretary of State Condoleezza Rice is in Rome meeting with a representative of the Vatican. Coming up in four and a half hours at 11:00 Eastern, she delivers a major international policy address in Paris.

The scientist who cloned Dolly the sheep now has a license to clone human embryos and experiment on them. This is the second time the British government has approved such a licensing since it legalized cloning research back in 2001. The scientist plans to conduct research involving therapeutic cloning, the type that does not result in a baby.

The good times are rolling in this morning in the Big Easy. This is Fat Tuesday in Cajun country. New Orleans is filled with partygoers for Mardi Gras. In just about 20 minutes, we will very bravely take you live to New Orleans.

(WEATHER REPORT)

COSTELLO: Topping the news this half-hour, Israeli and Palestinian officials say they're expecting a cease-fire declaration. High-level talks are under way right now between the two sides.

Let's go live to the summit site in Sharm el-Sheikh, Egypt, and our own John Vause.

Good morning -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

We were expecting those significant statements to be delivered around now -- one from the president of the Palestinian Authority, Mahmoud Abbas, the other from the Israeli prime minister, Ariel Sharon. But we believe that it may be delayed for an hour or so.

There should be no surprises here. Both sides have signed off on what the other is going to say. And that is, as far as the Palestinians are concerned, a declaration from Mahmoud Abbas for an end to attacks on Israelis everywhere, effectively an end to the Palestinian intifada or uprising.

And from the Israeli side, Ariel Sharon is then expected to say there is quiet, that Israel will cease all military activity in the occupied Palestinian territories.

Like I said, there should be no surprises. Both sides have signed off on this. They've been working on this for a number of weeks.

There will be no formal signing ceremony. And, in fact, you may not even hear the word, "cease-fire." Over the last four years, Carol, 10 cease-fires have come and gone -- Carol.

COSTELLO: I was just going to ask you a question about that. I mean, there can be no guarantee that the terrorists will cooperated.

VAUSE: No guarantees on that. But there is definitely a change in the mood here, one that we've noticed since the death of Yasser Arafat on November 11 and the election of Mahmoud Abbas as the president of the Palestinian Authority. There is talk of hope, talk of expectations. And, really, what we've noticed on both the Israeli and the Palestinian sides is that there is a great deal of weariness with the current conflict that has left almost 5,000 people dead.

So, a lot has changed, and there is a lot of hope, a lot of sort of wary optimism in all of this -- Carol.

COSTELLO: And that is good to hear. John Vause live in Egypt this morning.

Another place getting lots of attention right now is Iran. Iranian Nobel Peace Prize winner Shirin Ebadi is urging the Bush administration not to attack her country. She co-wrote an op-ed piece in today's "New York Times" saying -- and I quote: "American hypocrisy doesn't help, given the longstanding willingness of the American government to overlook abuses of human rights, particularly women's rights, by close allies in the Middle East like Saudi Arabia. It's hard not to see the Bush administration's focus on human rights violations in Iran as a cloak for its larger strategic interests."

If you want to read more, it's in "The New York Times" this morning.

What do the American people think of those strategic interests, as President Bush grapples with thorny issues like Iraq and Social Security reform? Has he lost or gained ground?

For the latest numbers, let's head live to Princeton, New Jersey, and Frank Newport of Gallup.

Good morning, Frank.

FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Good morning, Carol.

Overall, George W. Bush's job approval rating is up. In fact, it is now -- that's on the far right side here -- at 57 percent, and that's the highest we've seen George W. Bush's job approval rating by a point or 2 since way back in January of last year. So, the highest in 12 or 13 months, although he, let's say, after the election was at 55 percent. So, it's not significantly different, but it is a big uptick. We were at 51 percent just in January. So, there has been a gain.

Let's look at job approval ratings for how Bush is handling some key issues of his administration. Iraq up 8 points. That's a real key there from where we had measured it previously in January. How is he handling international foreign affairs? Up 4 points.

However, domestically, not much change. Social Security, the major push of the president, his approval on that only up 2 points from January. And, Carol, when we compare how he's handling the economy now with what the public told us in January, no change at all.

COSTELLO: How do Americans feel about the president's plans for Social Security, Frank?

NEWPORT: Well, Social Security, of course, has been the major component of what George W. Bush has been focusing on, particularly since last Wednesday, which was his State of the Union address. Then he went through five states barnstorming and what have you. But all of our data show not much change at all in what the American public thinks about Social Security.

A couple of our measures didn't move at all. Here's just a basic measure: Do you favor or oppose George W. Bush's Social Security reforms? And 50 percent say no, 44 percent said favor. There's still a big age difference in this that we have found all along as well. These are, oh, young people to older Americans, and notice the red bar gets higher. That's the "oppose" bar as you get older.

So, I don't see in our data any sign that the president has gained on Social Security. I think that big increase in job approval rating, Carol, was most likely due to the favorable perceptions on the part of the American public of the Iraqi elections a week ago Sunday.

COSTELLO: Well, he's hitting the road today, so we'll see if that helps any with the numbers on Social Security. Frank Newport live in Princeton, New Jersey. Thanks so much.

Sentencing is set for next week in the case of defrocked Catholic priest Paul Shanley. Shanley faces life in prison after a jury found him guilty of repeatedly abusing a young boy in his parish back in the 1980s. The district attorney says Shanley's accuser is overjoyed at the verdict. And other victims of priest abuse say they feel vindicated.

(BEGIN VIDEO CLIP)

"BILL", ANONYMOUS ABUSE SURVIVOR: Oh, I was certain that he would walk free, and I'm in shock. I'm in shock. But, you know, the right thing happened.

ANN HAGAN WEBB, SHAP: Only 2 percent of the priests ever get inside a courtroom, because of the statute of limitations. And we need to change those laws so that history doesn't repeat itself, because mark my words, it will if we don't change the system.

(END VIDEO CLIP)

COSTELLO: Shanley's bail was revoked, and he was immediately led off to jail after the verdict was read.

The case against Shanley has had a particularly tough impact on the Catholic community of Boston. CNN's Soledad O'Brien will be talking to one of the key players in the case coming up on "AMERICAN MORNING."

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Carol.

That's absolutely right. This morning, we're going to talk to the attorney in the case. Of course, as you well know, this case relied very heavily on recovered and repressed memories. So, we're going to ask the district attorney just how difficult it was to get the jurors to believe the accuser in this case.

Also, you spoke just a moment ago about some of the other alleged victims in this case, where the statute of limitations had run out. We're going to talk to one of those victims this morning, alleged victims, and find out if she feels vindicated by what was done in this particular case.

That's ahead this morning on "AMERICAN MORNING," Carol. We'll see you in just a few minutes.

COSTELLO: Twenty minutes to be exact. Thank you, Soledad.

In news across America now, investigators have moved a crashed corporate jet to a warehouse in New Jersey. The plane skidded off the runway at Teterboro Airport last week and hit a warehouse. The pilot and co-pilot are still hospitalized, but all eight passengers got out of that burning plane, thanks to one quick-thinking flight attendant.

(BEGIN VIDEO CLIP)

ANGELICA CALAD GOMEZ, FLIGHT ATTENDANT: I remember unbuckling myself right away and just going through that front door, because when I got up, I realized that there was smoking coming out of the back of the airplane, meaning that I couldn't evacuate through the back. I went to the front. Passengers got up, and I'm thanking so much the passengers that, you know, they were all men, and they were able to get up and open that door, because the door was stuck. And if I wouldn't had those passengers on the plane, there is no way that I would be here talking about this right now.

(END VIDEO CLIP)

COSTELLO: The cause of the crash is still under investigation this morning. An elementary school teacher in Tennessee is facing charges that she had an ongoing sexual affair with one of her 13-year-old male students. Twenty-seven-year-old Pamela Rogers Turner is charged with sexual battery by an authority figure and statutory rape. Prosecutors say some of the incidents took place at the school.

Executives from W.R. Grace Company face charges for threatening the health of 8,000 residents of a Montana town. The Justice Department alleges that seven executives knew the health dangers from their asbestos mine in Libby, Montana, but hid the risks from the public. The deaths of 200 residents are being blamed on asbestos. The company denies any criminal wrongdoing.

A former company chief in hot water. Now, we hear how water coffee, beans and even cigarettes played into the testimony at his trial.

Here's a look at what else is making news this Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.

Israeli and Palestinian leaders are expected to announce a formal cease-fire at a Mideast summit in Egypt today. If it holds, it would end more than four years of fighting and pave the way to revive the American-backed road map to peace plan.

Pope John Paul II has spent almost a week in a Rome hospital. His doctors say his condition is improving, but there's a bit of controversy. A top Vatican official was asked if the pope would consider stepping down. His reply? Let's leave that hypothesis up to the pope's conscious.

In money news, the proposed merger between Riggs National Corporation and PNC Financial Services has collapsed. The deal went south after PNC cut its takeover bid by 20 percent. Riggs turned around and sued PNC.

In culture, Denzel Washington was among several people eulogizing the late actors Ossie Davis. They came at an event in New York marking the release of the 1992 movie "Malcolm X" on DVD. Davis died last week at the age of 87.

In sports, outfielder Magglio Ordonez officially inked a five- year, $75 million deal with the Detroit Tigers. And, oh, I'm so happy about this. He actually missed most of last season with a knee injury, but I'm sure it's better now. If he has anymore health problems, the Tigers can void the deal after one year. Ooh. The Tigers may be contenders this year, Chad.

(WEATHER REPORT)

COSTELLO: We have a little update on Ellen MacArthur, Chad. CHAD MYERS, CNN METEOROLOGIST: Her sail is down now. She's being towed in, Carol. Sail around the world record is finally over for her.

COSTELLO: She is amazing. These are live pictures from Falmouth, England. Ellen MacArthur is a woman who sailed around the world in a record 71 days, and she did it all by herself.

MYERS: In a...

COSTELLO: Everybody has been waiting for her to get off that boat and come on to shore.

MYERS: I'm sure she can't wait to get back on land as well.

COSTELLO: But she only slept four hours a night, but she could only do it in 30-minute increments.

MYERS: Well, because she never took down the sail. She allowed the boat to sail even when she was sleeping, which is, of course, a little bit dangerous. You don't know where you're headed, especially at night, you can't really see very much. And with the sail up, you're still moving very good, making way at times at 22 knots in this 75-foot trimaran. And let me tell you, folks, if you don't believe it, 22 miles an hour, whatever, 24 miles an hour, is flying in a sailboat. It is screaming!

COSTELLO: She looks pretty good, though, doesn't she?

MYERS: She does. And...

COSTELLO: She looks healthy and hardy and that's amazing.

MYERS: A lot of folks are saying that she's a woman. The man that she broke -- Francis, the guy that she broke the record from, he was saying that she was much more prepared for this. He had damage to sailboat, and plus women are better prepared for this, because they do sleep deprivation much better than men can.

COSTELLO: I like that. I don't know if I believe it, but I like it.

MYERS: Ask any new mom.

COSTELLO: Exactly. I'll ask your wife, Sally.

MYERS: OK. Oh, there you go.

COSTELLO: You know, that summit in Sharm el-Sheikh, Egypt, is still going on. It holds promise for the people of many Middle East nations. Soledad O'Brien will be talking about that with a man who knows the situation well a little later on "AMERICAN MORNING."

Good morning -- Soledad.

O'BRIEN: And good morning to you again, Carol. One of the headlines, of course, is big news this morning in the Middle East, the Israeli and Palestinian leaders announcing a cease- fire. It comes at the end of the summit. They're meeting in Egypt, as you pointed out. So, the big question, of course, this morning is just how significant is it? We've heard about cease-fires before. Plus, is it really likely to stick? We're going to take you live Egypt for the very latest on that. And also we'll talk to a professor specializing in Mideast studies and find out what he thinks about the prospects for peace now.

That and much, much more ahead on "AMERICAN MORNING." And talk about that other story you were just chatting about, I can tell you women are so much better at sleep deprivation than men. I absolutely agree.

COSTELLO: I was just thinking that we must be conditioned, because we have children. And, boy, you know what it is to have children.

O'BRIEN: Who sleeps? You don't sleep.

COSTELLO: Never. Never.

O'BRIEN: Sally is not sleeping, and I'm not sleeping. And women everywhere are not sleeping.

COSTELLO: True.

O'BRIEN: Congratulations to her, by the way. I'm so excited for her.

COSTELLO: I know. I can't wait until she comes, like, on shore, I guess, and has something to say.

O'BRIEN: Yes, that's great.

COSTELLO: Because it will be interesting to see what her experiences were out there for 71 days. Thank you, Soledad.

O'BRIEN: Sure thing.

COSTELLO: Still to come on DAYBREAK, a big day for the Big Easy. Mardi Gras will be in full swing in a matter of hours. You are looking live at the streets of New Orleans this morning, and a couple of people are out. And it is raining there. But Chad will have the forecast for you later.

And the amazing rescue that only happens in a small town where everyone looks out for the other. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The international markets are mixed this morning. Japan's Nikkei closes down more than 9 points, Britain's FTSE trading up 9 points. The German DAX is up 7.5 points. It's time for a little "Business Buzz" now. The latest testimony in the WorldCom trial is sure to have people around the water cooler talking this morning.

Carrie Lee is live at the Nasdaq Marketsite with all of the juicy details.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: And, you know, Carol, part of the testimony here involving water cooler talk. We'll get to that in a second. But a very interesting day of testimony in the trial of former WorldCom CEO Bernard Ebbers.

First, G. Brady Connor (ph), who is a former budget analyst, testified. And, according to "The Washington Post" and other papers, he outlined some unusual plans by Ebbers to save money involving monitoring the length of cigarette breaks and lunch breaks to see if people were taking too long. Ebbers also reportedly monitored the parking lot to prevent employee lateness.

Connor (ph) says Ebbers would also fill the water coolers with tap water to save money. He said employees didn't know the difference.

Also, he would cut -- count, rather, coffee bags and filters, and if they didn't match up, Ebbers would assume people were stealing coffee.

Now, also former WorldCom Chief Financial Officer Scott Sullivan, the prosecution's star witness, took the stand. And he corroborated that Ebbers was a micro-manager, had a good grasp of accounting concepts, and so refuting Ebbers' defense that he wasn't aware of the company's financial problems.

Also, to stave off attacks on his credibility, Sullivan admitted to drug use in the past. So, certainly a juicy trial, Carol, that is continuing today.

COSTELLO: What kind of drug abuse?

LEE: Well, he did have a drunken driving conviction back in 1984. Also admitted to using marijuana and cocaine a couple of times a year from 1989 through 2000.

COSTELLO: And didn't Mr. Ebbers say, you know, he couldn't understand accounting, because he majored in physical education in college?

LEE: That's right. That's right. Well, what we heard yesterday certainly seems to refute that.

Now, of course, Sullivan has a vested interest in pointing the finger at Ebbers, so that he gets a lighter sentence. But certainly some very interesting developments.

COSTELLO: Very interesting. I can't believe he put tap water in the water -- that's just wrong.

LEE: We would never do that at CNN, right?

COSTELLO: Oh, I hope not. How could you prove it? We'll be doing water testing later today.

LEE: There you go.

COSTELLO: There are journalists here. Thank you, Carrie Lee.

LEE: OK.

COSTELLO: This is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: Taking a look at the morning headlines. Actually, let's take a look at New Orleans this morning, Chad. It looks kind of wet there.

MYERS: It is. A couple of showers around this morning. They'll get to a high of 71. There should be plenty of reveling going on. It's also punchky (ph) day in Detroit. I'll tell you what, a lot of folks are getting ready for this Fat Tuesday, Carol. Can you believe there's that many people outside already?

COSTELLO: Yes, I can.

MYERS: Are they still there?

COSTELLO: (UNINTELLIGIBLE) in New Orleans.

MYERS: Are they still there from last night? Or are they already there this morning?

COSTELLO: I think they're still there from last night. That would be my guess.

MYERS: Probably, yes.

COSTELLO: Yes. I was looking at the morning headlines in various newspapers this morning, Chad. And there's an interesting thing in "The Washington Post" as it applies to the Super Bowl in the TV column.

MYERS: Oh, right.

COSTELLO: Let's see. It was Sunday Super Bowl scored the game's smallest audience in six years.

MYERS: Well, we went over that again. We went over that. We talked about that. I think a lot of folks just gathered up and watched only one TV.

COSTELLO: Yes, right.

MYERS: I had 14 people watching my TV.

COSTELLO: Well, it says more than 86 million viewers, like, watched the Super Bowl. So, it wasn't, like, no one was watching. But the interesting thing was TiVo reported yesterday that the most replayed moment during a Super Bowl commercial was when a strap snapped on the skimpy top of a buxom bimbette (ph) testifying before congressional decency police about her upcoming performance for a godaddy.com ad.

MYERS: I thought the part where the one senator there on the panel that had his oxygen mask on was one of the funniest parts of any commercial of all time. I mean, it wasn't funny because that was a real event. He was really there, but not during the commercial, of course, but during real testimony.

COSTELLO: Oh, Chad.

MYERS: And then they canceled. They canceled the next commercial that was supposed to run in the second half. The NFL said, no, you can't run the second one.

COSTELLO: Oh, about godaddy.com, because it was much more racy than the one that played. But it was just interesting that they tried to keep everything clean and decent, and the most TiVo'd moment was that one.

We have to say goodbye. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

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