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CNN Live At Daybreak
Face to Face; Hot Housing; Interview With Mahmoud Abbas
Aired May 26, 2005 - 5:01 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: Straight ahead on DAYBREAK, it never happened on Arafat's watch, but the Palestinians' new president is meeting face to face with President Bush.
Plus, a palace or a pit? What kind of house will a million bucks buy you?
And it reads like a song. Two country crooners make it official.
It is Thursday, May 26. This is DAYBREAK.
Good morning to you. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
""Now in the News," Palestinian leader Mahmoud Abbas is in Washington for talks with President Bush and other officials at the White House today. The president will pledge tens of millions of dollars in direct aid to the Palestinian Authority. The two will meet with reporters later this morning.
After four days of demonstrations in Indonesia, the U.S. embassy in Jakarta has closed until further notice. Staged marches by thousands of Indonesian Muslims have protested the alleged U.S. desecration of Islam's holy Quran.
We've just gotten word that the World Trade Organization has agreed to start membership negotiations with Iran. This comes after the United States dropped a longstanding veto. The U.S. decision followed Iran's pledge to European Union leaders not to pursue development of nuclear weapons.
And why is a nor'easter hitting the Northeast in May? High winds and high waves collapsed this seawall near Boston. Both docks and ocean-facing homes have been taking a beating from the storm.
It is so nasty in the Northeast, Chad.
CHAD MYERS, CNN METEOROLOGIST: It is. It was 74 here yesterday with sunshine.
Carol, didn't you use to live here? Didn't you ask to move to New York?
COSTELLO: You know, I'm seriously thinking of quitting and just moving out...
MYERS: Wow. COSTELLO: ... moving to Florida. That sounds good.
MYERS: That's why the housing prices are going up in Florida. We'll have a story on that in about six minutes.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: Our top story this morning, for the first time in five years, the U.S. and Palestinian presidents are meeting face to face. Palestinian Authority President Mahmoud Abbas is in Washington after weeks of circling the globe in the name of diplomacy.
CNN's Guy Raz is in Jerusalem with details from there.
Good morning.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
Now, President Mahmoud Abbas will be looking for more than just statements and platitudes from the president when the two men meet later today in the White House. He will be looking for a rock-solid commitment from the White House.
Now, Mahmoud Abbas, also known as Abu Mazen, has been circling the globe for the past three weeks, seeking to shore up international support for the Palestinian cause.
(BEGIN VIDEOTAPE)
RAZ (voice-over): The Abu Mazen road show now in its third week. The Middle East's latest frequent flyer just back from Egypt, a visit to Pakistan, a courtesy call in Indian, China and Japan. All the while, trouble brewing at home with Palestinian militants taking on Palestinian police, no end in sight to Israel's construction of the separation barrier, and millions of Palestinians wondering whether their new leader can ease their situation.
Mahmoud Abbas has a lot on his plate.
MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): I can't make any commitment to President Bush, or anyone else, for that matter, if I can't show the Palestinian people that I am delivering results. We are doing all we can to carry out our end of bargain, but ultimately, we need to return to negotiation. That is the only way to achieve peace.
RAZ: The White House has hailed Abbas as a pragmatist. Secretary of State Condoleezza Rice paid him a visit in January, and President Bush, who met Abbas in 2003, has called him a partner for peace. But words alone may not be enough.
MAHDI ABDUL-HADI, PALESTINIAN ACADEMIC SOCIETY: What is really needed, this chemistry between Mahmoud Abbas and Mr. Bush on where we go from here. We trust each other, we respect each other, and we want to do it together. Can we or can't we?
RAZ: As Israel prepares to end its formal occupation in Gaza, its hold on parts of the West Bank is strengthening. The proposed route of this barrier casts a long shadow over prospects that peace is any closer. Israel says it's designed to thwart suicide bombers, but Palestinians bitterly oppose it because current projections show it will leave about 10 percent of the West Bank in Israeli hands.
(END VIDEOTAPE)
RAZ: Now, Carol, for the past five years the Palestinian leadership has been all but shut out of Washington. President Bush had refused to meet with Mahmoud Abbas' predecessor, Yasser Arafat. Now it's time for the two sides to reestablish the relationship. But between the demands of his people and the absence of a political horizon, Mahmoud Abbas now has his work cut out for him -- Carol.
COSTELLO: Guy Raz reporting live from Jerusalem this morning. CNN will carry the White House news conference with President Bush and the Palestinian president. That will happen live at 11:25 a.m. Eastern.
Some newly released FBI documents include interviews in which prisoners at Guantanamo Bay accuse guards of mistreating the Quran. The previously undisclosed documents were released by the ACLU after a freedom of information request. Prisoners at Guantanamo Bay reported widespread abuse of the Quran as early as April of 2002.
In news "Across America" now, two women are seriously injured by a knife-wielding attacker at a mall in Bethesda, Maryland. The attack sent many shoppers running for the doors. An off-duty police officer witnessed the second stabbing but was able to catch the attacker. Police say a motive still is not clear.
An arrest warrant will be issued in the next few days for the so- called runaway bride. Jennifer Wilbanks was indicted by a grand jury in Gwinnett County, Georgia. She faces one felony count of making false statements and a misdemeanor count of falsely reporting a crime. Wilbanks could face one to five years in prison.
They're making a new coin at the U.S. Mint in Philadelphia. The silver dollar commemorates the 230th anniversary of the Marine Corps. Proceeds from the sale of the coin will go towards building the National Marine Corps Museum. They'll go on sale in July.
And in case you missed it, the little country girl from Oklahoma is the next "American Idol." Viewers chose 22-year-old Carrie Underwood over the long-haired rocker Bo Bice. She gets a guaranteed record contract as winner of the show's fourth season. As for Bice, he's already been offered $10,000 to sing the jingle of a regional restaurant chain.
Chances are good if you own a home it's worth more now than what you paid for it. And if you're lucky, it could be a lot more. Home prices rose more quickly over the last year than at any point since 1980, and that has analysts worrying about what they're calling a real estate bubble. The danger comes if your home is overvalued, then prices burst, leaving you owing more than your home is really worth.
For now, mortgage rates are still good. So should you buy, sell or refinance? Let's run the numbers for you.
Thirty-year fixed-rate mortgages are at 5.21 percent. Fifteen- year fixed rates are at 4.75 percent, and one-year adjustable rates, you know, ARMS, are at 3.6 percent.
That actually brings us to our DAYBREAK e-mail "Question of the Day," Chad.
MYERS: Yes.
COSTELLO: Because we're going to talk a lot more about this in the 6:00 hour of DAYBREAK.
MYERS: Carol, yes. And a concern I think for a lot of economists is that a lot of folks are in those ARMS, those one-year adjustable ARMS. And if they do adjust, as that first letter indicates, they could be in trouble.
Buyers and sellers, what's your side, what's your take on the housing market, bubble, or even because we're talking about it, that it's a bubble, that there's no way that it's a bubble? What do you think? Give us a DAYBREAK e-mail and DAYBREAK@CNN.com this morning.
COSTELLO: And you have -- if you have any questions for our expert that we'll have on in the 6:00 hour, oh, please, feel free to write your questions in as well. That's DAYBREAK@CNN.com.
MYERS: Clearly, Carol, some cities are in a bubble, some cities are not. And it just depends how much you've been up in the past couple of months or years, or so on.
COSTELLO: Well, we'll see.
MYERS: OK.
COSTELLO: A time was if you lived in a million-dollar home you had it made. But with interest rates relatively low, the housing market is getting out of sight.
CNN's Gerri Willis shopped around to see what you can actually get for a million dollars these days.
(BEGIN VIDEOTAPE)
KATHY BRADDOCK, REAL ESTATE AGENT: It is a terrific one bedroom, totally renovated, move-in condition, one bedroom apartment. The kitchen, as you can see, fabulous countertops, state-of-the-art appliances, and it even has a washer and drier, which for us in New York is a big treat. One of the wonderful features of this apartment is clearly the view.
GERRI WILLIS, CNN CORRESPONDENT: What is the square footage?
BRADDOCK: About 822 square feet, and very well used square footage. Every single part is well-used.
WILLIS: Eight hundred and twenty-two square feet, $1 million?
BRADDOCK: Yes.
WILLIS (voice-over): Prices in Manhattan have risen 20 percent in the last year, and the Big Apple is not the only city overheating. Some 66 metro areas posted double-digit price increases this year, and many of them are in unexpected places like Bradenton, Florida, a baby boomer retirement mecca where prices spiked 45 percent. West Palm Beach and Boca Raton make the top five list, too.
The boom is making it tough for middle income Americans to land a home. Joint Center for Housing Studies at Harvard University says 25 percent of middle class home owners -- that's 9.3 million -- are spending more than they should on housing.
Take a look at this home on the market for $989,000 in Chicago's exclusive Lincoln Park. For the money, you get three bedrooms, two baths and 2,500 square feet of space, but if you want a garage, you'll have to go elsewhere.
Don't look for easy pickings once you retire either. This Miami condo on the market for $1.1 million has ocean views. But with just 1,400 square feet of space, it will be tough to accommodate the grandkids.
One house on the list delivered value for the money.
DAVID D'AUSILIO, REAL ESTATE AGENT: Well, Gerri, this is what $1 million buys you in Monroe, Connecticut.
WILLIS (on camera): It's pretty nice. Let's take a look.
D'AUSILIO: Absolutely.
WILLIS: So, this is a pretty nice kitchen.
D'AUSILIO: Oh, beautiful. The homeowners here did a lot of custom work, including the cherry cabinets. Beautiful granite countertops, and as you can see, gourmet Wolf range with hood.
WILLIS: Very high end, and naturally, the sub-zero.
D'AUSILIO: High-end appliances throughout.
WILLIS (voice-over): Four bedrooms, three-and-a-half baths, 3,800 square feet on one acre of level land. Price tag, $979,000. But even here, where values appear to be better, D'Ausilio says the market has gone too far. This man, who makes his living selling homes, is a renter. D'AUSILIO: We decided to rent for a few years. We think this housing market's going to cool down a little bit and we'll be able to find a better value perhaps 24 months from now.
WILLIS: Experts warn in the metro markets where prices have gone up the most, prices could fall, and fall hard. That means for some people they could end up owing more than the house is worth if they had to sell.
In most of the rest of the country, though, the likelihood is that prices might flatten but not collapse.
Gerri Willis, CNN, New York.
(END VIDEOTAPE)
COSTELLO: Unbelievable.
Still to come on DAYBREAK, he's talking to President Bush later this morning, but first he talked to John King. We'll tell you what Mahmoud Abbas wants from the United States and how many millions of dollars from you he expects.
We'll take you to Liberia, where the connection between corruption and al Qaeda remains strong, even after the president was forced out.
And this contest didn't have any upstart hares getting in the way of the tortoises. We'll show you the nail-biting finish just ahead.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: The international markets looking up this morning. Tokyo's Nikkei higher by 13 points. The London FTSE is up nearly 23 points. The German DAX is up almost 22 points.
Your news, money, weather and sports. It's 5:17 Eastern. Here's what's all new this morning.
President Bush is expected to offer tens of millions of dollars in direct aid to Palestinian Authority President Mahmoud Abbas. The two meet in Washington today.
The Senate could vote on the John Bolton nomination today. The vote on the U.N. ambassador nominee follows a day of sometimes emotional debate on the Senate floor.
In money news, Fresca is being freshened up. The Coke product will get a new facelift and some new flavors. Joining the usual great fruit taste will be peach and black cherry.
In culture, Burt Reynolds got a little physical with a TV producer in New York. Did you hear about this? The actor swatted the producer at the premier of the remake "The Longest Yard." Actually, smacked him across the face, lightly, he said.
Reynolds was unhappy the producer had not seen the original movie. The producer, well, the producer got mad, as I said, because the producer says Reynolds actually slapped him. Reynolds' spokesman says he was just being playful.
In sports, Dwayne Wade scored 40 points to lead the Miami Heat to a 92-86 win over the Detroit Pistons. The win by the Heat ties the Eastern Conference Finals at one game a piece -- Chad.
MYERS: Yes, they needed to win one at home, that's for sure, or else this was going to be the big brooming (ph).
Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
That's the latest news, weather and sports for you.
Palestinian President Mahmoud Abbas is in Washington. Today will be his first meeting with President Bush as leader of the Palestinian people.
CNN chief national correspondent, John King, sat down with Abbas to find out exactly what he will bring to the table.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Mr. President, thank you so much for joining us.
You're having meetings with senior U.S. officials, including the president, the vice president, the secretary of state. We are told that the president will announce several tens of millions of dollars in new direct aid to the Palestinian Authority. In the past, as you well know, that aid has -- most of it has been run through other organizations because of questions of government bureaucracy, questions of corruption in the past from the U.S. side.
How much money are we talking about, and what is the significance of this?
ABBAS (through translator): We don't know exactly the answer to this. We don't know if the president has decided this or not. But today, throughout the various meetings that we had with members of the Congress, as well as the meeting with the vice president, we gave them a specific message that we are asking that the American financial aid to be sent to the Palestinian Ministry of Finance.
The Ministry of Finance now enjoys a great deal of transparency and accountability. And we are asking that the American aid and American money to go to the Ministry of Finance. We will listen to the president tomorrow when we meet with him, and we don't know yet about the amount. KING: Another thing we understand that your delegation and you personally have been seeking is a letter from the president, including some assurances for the Palestinians. As you know, Prime Minister Sharon is very fond of quoting the letter he received from President Bush. And we understand that you would like a letter that has very strong language from the U.S. administration raising concerns about Israeli settlements, and also committing the United States government to a permanent Palestine with contiguous borders.
Will you get that letter, sir?
ABBAS (through translator): All these issues that you refer to is a part and parcel of the roadmap. The president expressed that through his vision of two states and the existence and establishment state, that it is viable and that is independent.
The president and Secretary Rice, both of them talked about the necessity to stop settlement activities. I do not believe there are difficulties in achieving those assurances and getting those assurances that you have referred to.
The issue also that it is related to Gaza withdrawal, we do not want the Gaza withdrawal to be first and last. We would like the Gaza withdrawal to lead into additional steps. We would like to go straight after the Gaza withdrawal to the roadmap and to the issues of the permanent status (ph) phase and the permanent status (ph) agreement.
We will be asking the administration about these issues. And we believe that we would receive various assurances.
KING: But is it important for your personal credibility, sir, back home to leave with a letter, with some of those assurances in writing so that you can go home and say -- tell your people, "The United States is with us on these points"?
ABBAS (through translator): We hope that we will be able to get something that would reflect the credibility of what we say, and we will be in a position to say to the Palestinian people that the American president is committed and here is the proof of his commitment. Up till now, we will see what will happen on this issue.
KING: Prime Minister Sharon is also in the United States, as you know. And he gave a speech in which he has promised to release 400 more prisoners. But the Israeli government says it cannot do more, especially in terms of returning control of several more cities to the Palestinians.
In Mr. Sharon's view, he says you have not done enough, that you have not done enough to crack down on terrorism and violence. And specifically, the Israeli governments says that there are known terrorists at large in Jericho and other cities that you refuse to apprehend.
How would you answer that? ABBAS (through translator): Regarding this issue of handing over the cities, there is an agreement between us and the Israelis to hand over five cities. So far, only Jericho and (INAUDIBLE) have been handed over to the Palestinian Authority. And I can say that we have full and total security control on those two -- to those cities.
We will continue to ask the Israelis. There are approximately 11,000 Palestinian political prisoners in Israeli jail. We would like all of them to be released.
This is a very sensitive issue. It is a political issue, and it's a humanitarian issue, and we will continue to raise it.
(END VIDEOTAPE)
COSTELLO: CNN will carry the White House news conference with President Bush and the Palestinian president, Mahmoud Abbas, live at 11:25 Eastern this morning.
Still to come on DAYBREAK, he's in exile now, but was Liberian leader Charles Taylor funding al Qaeda? Some say he was. We'll take a look later this hour.
This is DAYBREAK for Thursday.
(COMMERCIAL BREAK)
COSTELLO: We need to laugh this morning, don't we?
MYERS: Oh, please.
COSTELLO: I do, because, you know, the weather has been so awful so long here, it really does make you depressed.
MYERS: People are getting that sad thing going on, like it's the middle of December. And I figured out why, Carol.
April was about three-and-a-half degrees above normal. So far, May is four degrees below normal. So everybody thought we were getting into summer, and then all of a sudden the jet stream turned around and now you're much colder than it was in April.
COSTELLO: I had to turn the heat on last night.
MYERS: Yes, absolutely.
COSTELLO: That's how cold it was.
Anyway, let's talk about something else, like the runaway bride.
MYERS: Jay Leno?
COSTELLO: Jay Leno.
MYERS: Yes. COSTELLO: We mentioned earlier that Jennifer Wilbanks has been indicted by a grand jury in Gwinnett County, Georgia. And you know the story. She ran off days before her wedding, she made up this story about being abducted. And as you say, Jay Leno had his own take on that.
(BEGIN VIDEO CLIP)
JAY LENO, "THE TONIGHT SHOW WITH JAY LENO": You know, she had the whole story about being kidnapped. Remember?
UNIDENTIFIED MALE: Right. Right.
LENO: Anyway, the district attorney said, "At some point you just can't lie to police." That was his quote. At some point?
(LAUGHTER)
So apparently it's OK to lie to police for awhile. You just have to know when to quit. You can lie for a little while.
Everybody's talking about these "Star Wars" fans dressed in strange costumes? Have you see them? They look like aliens, they look like creatures from outer space or something. I'm sorry, that was outside the Jackson trial yesterday.
(LAUGHTER)
I'm sorry. I was confused. I was in Santa Maria. I forgot.
Michael Jackson was no more than six feet away from me. Closer than you are right now. And I was looking at him. I thought to myself, you know something? I think he's had some work done.
(LAUGHTER)
I don't want to start anything, but, you know, I'm thinking, hey, wait a minute.
UNIDENTIFIED MALE: Yes.
LENO: Looks something different.
I ready in the paper today that Jackson's legal team was disappointed with my testimony. In fact, Tom Mesereau, Michael's lawyer, called me last night. And he said, for Michael's next molestation trial, we're not having you back.
(END VIDEO CLIP)
MYERS: Anyway...
COSTELLO: I need to listen to that again so I can just laugh again.
MYERS: Remember how cute Michael Jackson was as a kid in the Jackson Five? Man, I used to watch that all the time.
COSTELLO: And at times in his adult life he was quite handsome.
MYERS: Yes. Not to himself. That was the problem.
COSTELLO: Let's get right to our DAYBREAK "Eye Openers" now, shall we?
MYERS: A couple of good ones here.
COSTELLO: Oh, yes. True. That's true.
The Indianapolis 500 this is not.
MYERS: And down the stretch they come!
COSTELLO: The city zoo still plays host to their version, as you can see, of the greatest spectacle of racing. Of course it's the annual tortoise race. In case you're wondering, the toll (ph) setter for the Indy 500 topped 225 miles per hour, Chad.
MYERS: Yes.
COSTELLO: The tortoise, 17/100ths of a mile per hour.
MYERS: About as quick as your fingernails grow.
COSTELLO: That's true.
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 May 26, 2005 - 5:01 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, it never happened on Arafat's watch, but the Palestinians' new president is meeting face to face with President Bush.
Plus, a palace or a pit? What kind of house will a million bucks buy you?
And it reads like a song. Two country crooners make it official.
It is Thursday, May 26. This is DAYBREAK.
Good morning to you. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
""Now in the News," Palestinian leader Mahmoud Abbas is in Washington for talks with President Bush and other officials at the White House today. The president will pledge tens of millions of dollars in direct aid to the Palestinian Authority. The two will meet with reporters later this morning.
After four days of demonstrations in Indonesia, the U.S. embassy in Jakarta has closed until further notice. Staged marches by thousands of Indonesian Muslims have protested the alleged U.S. desecration of Islam's holy Quran.
We've just gotten word that the World Trade Organization has agreed to start membership negotiations with Iran. This comes after the United States dropped a longstanding veto. The U.S. decision followed Iran's pledge to European Union leaders not to pursue development of nuclear weapons.
And why is a nor'easter hitting the Northeast in May? High winds and high waves collapsed this seawall near Boston. Both docks and ocean-facing homes have been taking a beating from the storm.
It is so nasty in the Northeast, Chad.
CHAD MYERS, CNN METEOROLOGIST: It is. It was 74 here yesterday with sunshine.
Carol, didn't you use to live here? Didn't you ask to move to New York?
COSTELLO: You know, I'm seriously thinking of quitting and just moving out...
MYERS: Wow. COSTELLO: ... moving to Florida. That sounds good.
MYERS: That's why the housing prices are going up in Florida. We'll have a story on that in about six minutes.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: Our top story this morning, for the first time in five years, the U.S. and Palestinian presidents are meeting face to face. Palestinian Authority President Mahmoud Abbas is in Washington after weeks of circling the globe in the name of diplomacy.
CNN's Guy Raz is in Jerusalem with details from there.
Good morning.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
Now, President Mahmoud Abbas will be looking for more than just statements and platitudes from the president when the two men meet later today in the White House. He will be looking for a rock-solid commitment from the White House.
Now, Mahmoud Abbas, also known as Abu Mazen, has been circling the globe for the past three weeks, seeking to shore up international support for the Palestinian cause.
(BEGIN VIDEOTAPE)
RAZ (voice-over): The Abu Mazen road show now in its third week. The Middle East's latest frequent flyer just back from Egypt, a visit to Pakistan, a courtesy call in Indian, China and Japan. All the while, trouble brewing at home with Palestinian militants taking on Palestinian police, no end in sight to Israel's construction of the separation barrier, and millions of Palestinians wondering whether their new leader can ease their situation.
Mahmoud Abbas has a lot on his plate.
MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): I can't make any commitment to President Bush, or anyone else, for that matter, if I can't show the Palestinian people that I am delivering results. We are doing all we can to carry out our end of bargain, but ultimately, we need to return to negotiation. That is the only way to achieve peace.
RAZ: The White House has hailed Abbas as a pragmatist. Secretary of State Condoleezza Rice paid him a visit in January, and President Bush, who met Abbas in 2003, has called him a partner for peace. But words alone may not be enough.
MAHDI ABDUL-HADI, PALESTINIAN ACADEMIC SOCIETY: What is really needed, this chemistry between Mahmoud Abbas and Mr. Bush on where we go from here. We trust each other, we respect each other, and we want to do it together. Can we or can't we?
RAZ: As Israel prepares to end its formal occupation in Gaza, its hold on parts of the West Bank is strengthening. The proposed route of this barrier casts a long shadow over prospects that peace is any closer. Israel says it's designed to thwart suicide bombers, but Palestinians bitterly oppose it because current projections show it will leave about 10 percent of the West Bank in Israeli hands.
(END VIDEOTAPE)
RAZ: Now, Carol, for the past five years the Palestinian leadership has been all but shut out of Washington. President Bush had refused to meet with Mahmoud Abbas' predecessor, Yasser Arafat. Now it's time for the two sides to reestablish the relationship. But between the demands of his people and the absence of a political horizon, Mahmoud Abbas now has his work cut out for him -- Carol.
COSTELLO: Guy Raz reporting live from Jerusalem this morning. CNN will carry the White House news conference with President Bush and the Palestinian president. That will happen live at 11:25 a.m. Eastern.
Some newly released FBI documents include interviews in which prisoners at Guantanamo Bay accuse guards of mistreating the Quran. The previously undisclosed documents were released by the ACLU after a freedom of information request. Prisoners at Guantanamo Bay reported widespread abuse of the Quran as early as April of 2002.
In news "Across America" now, two women are seriously injured by a knife-wielding attacker at a mall in Bethesda, Maryland. The attack sent many shoppers running for the doors. An off-duty police officer witnessed the second stabbing but was able to catch the attacker. Police say a motive still is not clear.
An arrest warrant will be issued in the next few days for the so- called runaway bride. Jennifer Wilbanks was indicted by a grand jury in Gwinnett County, Georgia. She faces one felony count of making false statements and a misdemeanor count of falsely reporting a crime. Wilbanks could face one to five years in prison.
They're making a new coin at the U.S. Mint in Philadelphia. The silver dollar commemorates the 230th anniversary of the Marine Corps. Proceeds from the sale of the coin will go towards building the National Marine Corps Museum. They'll go on sale in July.
And in case you missed it, the little country girl from Oklahoma is the next "American Idol." Viewers chose 22-year-old Carrie Underwood over the long-haired rocker Bo Bice. She gets a guaranteed record contract as winner of the show's fourth season. As for Bice, he's already been offered $10,000 to sing the jingle of a regional restaurant chain.
Chances are good if you own a home it's worth more now than what you paid for it. And if you're lucky, it could be a lot more. Home prices rose more quickly over the last year than at any point since 1980, and that has analysts worrying about what they're calling a real estate bubble. The danger comes if your home is overvalued, then prices burst, leaving you owing more than your home is really worth.
For now, mortgage rates are still good. So should you buy, sell or refinance? Let's run the numbers for you.
Thirty-year fixed-rate mortgages are at 5.21 percent. Fifteen- year fixed rates are at 4.75 percent, and one-year adjustable rates, you know, ARMS, are at 3.6 percent.
That actually brings us to our DAYBREAK e-mail "Question of the Day," Chad.
MYERS: Yes.
COSTELLO: Because we're going to talk a lot more about this in the 6:00 hour of DAYBREAK.
MYERS: Carol, yes. And a concern I think for a lot of economists is that a lot of folks are in those ARMS, those one-year adjustable ARMS. And if they do adjust, as that first letter indicates, they could be in trouble.
Buyers and sellers, what's your side, what's your take on the housing market, bubble, or even because we're talking about it, that it's a bubble, that there's no way that it's a bubble? What do you think? Give us a DAYBREAK e-mail and DAYBREAK@CNN.com this morning.
COSTELLO: And you have -- if you have any questions for our expert that we'll have on in the 6:00 hour, oh, please, feel free to write your questions in as well. That's DAYBREAK@CNN.com.
MYERS: Clearly, Carol, some cities are in a bubble, some cities are not. And it just depends how much you've been up in the past couple of months or years, or so on.
COSTELLO: Well, we'll see.
MYERS: OK.
COSTELLO: A time was if you lived in a million-dollar home you had it made. But with interest rates relatively low, the housing market is getting out of sight.
CNN's Gerri Willis shopped around to see what you can actually get for a million dollars these days.
(BEGIN VIDEOTAPE)
KATHY BRADDOCK, REAL ESTATE AGENT: It is a terrific one bedroom, totally renovated, move-in condition, one bedroom apartment. The kitchen, as you can see, fabulous countertops, state-of-the-art appliances, and it even has a washer and drier, which for us in New York is a big treat. One of the wonderful features of this apartment is clearly the view.
GERRI WILLIS, CNN CORRESPONDENT: What is the square footage?
BRADDOCK: About 822 square feet, and very well used square footage. Every single part is well-used.
WILLIS: Eight hundred and twenty-two square feet, $1 million?
BRADDOCK: Yes.
WILLIS (voice-over): Prices in Manhattan have risen 20 percent in the last year, and the Big Apple is not the only city overheating. Some 66 metro areas posted double-digit price increases this year, and many of them are in unexpected places like Bradenton, Florida, a baby boomer retirement mecca where prices spiked 45 percent. West Palm Beach and Boca Raton make the top five list, too.
The boom is making it tough for middle income Americans to land a home. Joint Center for Housing Studies at Harvard University says 25 percent of middle class home owners -- that's 9.3 million -- are spending more than they should on housing.
Take a look at this home on the market for $989,000 in Chicago's exclusive Lincoln Park. For the money, you get three bedrooms, two baths and 2,500 square feet of space, but if you want a garage, you'll have to go elsewhere.
Don't look for easy pickings once you retire either. This Miami condo on the market for $1.1 million has ocean views. But with just 1,400 square feet of space, it will be tough to accommodate the grandkids.
One house on the list delivered value for the money.
DAVID D'AUSILIO, REAL ESTATE AGENT: Well, Gerri, this is what $1 million buys you in Monroe, Connecticut.
WILLIS (on camera): It's pretty nice. Let's take a look.
D'AUSILIO: Absolutely.
WILLIS: So, this is a pretty nice kitchen.
D'AUSILIO: Oh, beautiful. The homeowners here did a lot of custom work, including the cherry cabinets. Beautiful granite countertops, and as you can see, gourmet Wolf range with hood.
WILLIS: Very high end, and naturally, the sub-zero.
D'AUSILIO: High-end appliances throughout.
WILLIS (voice-over): Four bedrooms, three-and-a-half baths, 3,800 square feet on one acre of level land. Price tag, $979,000. But even here, where values appear to be better, D'Ausilio says the market has gone too far. This man, who makes his living selling homes, is a renter. D'AUSILIO: We decided to rent for a few years. We think this housing market's going to cool down a little bit and we'll be able to find a better value perhaps 24 months from now.
WILLIS: Experts warn in the metro markets where prices have gone up the most, prices could fall, and fall hard. That means for some people they could end up owing more than the house is worth if they had to sell.
In most of the rest of the country, though, the likelihood is that prices might flatten but not collapse.
Gerri Willis, CNN, New York.
(END VIDEOTAPE)
COSTELLO: Unbelievable.
Still to come on DAYBREAK, he's talking to President Bush later this morning, but first he talked to John King. We'll tell you what Mahmoud Abbas wants from the United States and how many millions of dollars from you he expects.
We'll take you to Liberia, where the connection between corruption and al Qaeda remains strong, even after the president was forced out.
And this contest didn't have any upstart hares getting in the way of the tortoises. We'll show you the nail-biting finish just ahead.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
COSTELLO: The international markets looking up this morning. Tokyo's Nikkei higher by 13 points. The London FTSE is up nearly 23 points. The German DAX is up almost 22 points.
Your news, money, weather and sports. It's 5:17 Eastern. Here's what's all new this morning.
President Bush is expected to offer tens of millions of dollars in direct aid to Palestinian Authority President Mahmoud Abbas. The two meet in Washington today.
The Senate could vote on the John Bolton nomination today. The vote on the U.N. ambassador nominee follows a day of sometimes emotional debate on the Senate floor.
In money news, Fresca is being freshened up. The Coke product will get a new facelift and some new flavors. Joining the usual great fruit taste will be peach and black cherry.
In culture, Burt Reynolds got a little physical with a TV producer in New York. Did you hear about this? The actor swatted the producer at the premier of the remake "The Longest Yard." Actually, smacked him across the face, lightly, he said.
Reynolds was unhappy the producer had not seen the original movie. The producer, well, the producer got mad, as I said, because the producer says Reynolds actually slapped him. Reynolds' spokesman says he was just being playful.
In sports, Dwayne Wade scored 40 points to lead the Miami Heat to a 92-86 win over the Detroit Pistons. The win by the Heat ties the Eastern Conference Finals at one game a piece -- Chad.
MYERS: Yes, they needed to win one at home, that's for sure, or else this was going to be the big brooming (ph).
Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
That's the latest news, weather and sports for you.
Palestinian President Mahmoud Abbas is in Washington. Today will be his first meeting with President Bush as leader of the Palestinian people.
CNN chief national correspondent, John King, sat down with Abbas to find out exactly what he will bring to the table.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Mr. President, thank you so much for joining us.
You're having meetings with senior U.S. officials, including the president, the vice president, the secretary of state. We are told that the president will announce several tens of millions of dollars in new direct aid to the Palestinian Authority. In the past, as you well know, that aid has -- most of it has been run through other organizations because of questions of government bureaucracy, questions of corruption in the past from the U.S. side.
How much money are we talking about, and what is the significance of this?
ABBAS (through translator): We don't know exactly the answer to this. We don't know if the president has decided this or not. But today, throughout the various meetings that we had with members of the Congress, as well as the meeting with the vice president, we gave them a specific message that we are asking that the American financial aid to be sent to the Palestinian Ministry of Finance.
The Ministry of Finance now enjoys a great deal of transparency and accountability. And we are asking that the American aid and American money to go to the Ministry of Finance. We will listen to the president tomorrow when we meet with him, and we don't know yet about the amount. KING: Another thing we understand that your delegation and you personally have been seeking is a letter from the president, including some assurances for the Palestinians. As you know, Prime Minister Sharon is very fond of quoting the letter he received from President Bush. And we understand that you would like a letter that has very strong language from the U.S. administration raising concerns about Israeli settlements, and also committing the United States government to a permanent Palestine with contiguous borders.
Will you get that letter, sir?
ABBAS (through translator): All these issues that you refer to is a part and parcel of the roadmap. The president expressed that through his vision of two states and the existence and establishment state, that it is viable and that is independent.
The president and Secretary Rice, both of them talked about the necessity to stop settlement activities. I do not believe there are difficulties in achieving those assurances and getting those assurances that you have referred to.
The issue also that it is related to Gaza withdrawal, we do not want the Gaza withdrawal to be first and last. We would like the Gaza withdrawal to lead into additional steps. We would like to go straight after the Gaza withdrawal to the roadmap and to the issues of the permanent status (ph) phase and the permanent status (ph) agreement.
We will be asking the administration about these issues. And we believe that we would receive various assurances.
KING: But is it important for your personal credibility, sir, back home to leave with a letter, with some of those assurances in writing so that you can go home and say -- tell your people, "The United States is with us on these points"?
ABBAS (through translator): We hope that we will be able to get something that would reflect the credibility of what we say, and we will be in a position to say to the Palestinian people that the American president is committed and here is the proof of his commitment. Up till now, we will see what will happen on this issue.
KING: Prime Minister Sharon is also in the United States, as you know. And he gave a speech in which he has promised to release 400 more prisoners. But the Israeli government says it cannot do more, especially in terms of returning control of several more cities to the Palestinians.
In Mr. Sharon's view, he says you have not done enough, that you have not done enough to crack down on terrorism and violence. And specifically, the Israeli governments says that there are known terrorists at large in Jericho and other cities that you refuse to apprehend.
How would you answer that? ABBAS (through translator): Regarding this issue of handing over the cities, there is an agreement between us and the Israelis to hand over five cities. So far, only Jericho and (INAUDIBLE) have been handed over to the Palestinian Authority. And I can say that we have full and total security control on those two -- to those cities.
We will continue to ask the Israelis. There are approximately 11,000 Palestinian political prisoners in Israeli jail. We would like all of them to be released.
This is a very sensitive issue. It is a political issue, and it's a humanitarian issue, and we will continue to raise it.
(END VIDEOTAPE)
COSTELLO: CNN will carry the White House news conference with President Bush and the Palestinian president, Mahmoud Abbas, live at 11:25 Eastern this morning.
Still to come on DAYBREAK, he's in exile now, but was Liberian leader Charles Taylor funding al Qaeda? Some say he was. We'll take a look later this hour.
This is DAYBREAK for Thursday.
(COMMERCIAL BREAK)
COSTELLO: We need to laugh this morning, don't we?
MYERS: Oh, please.
COSTELLO: I do, because, you know, the weather has been so awful so long here, it really does make you depressed.
MYERS: People are getting that sad thing going on, like it's the middle of December. And I figured out why, Carol.
April was about three-and-a-half degrees above normal. So far, May is four degrees below normal. So everybody thought we were getting into summer, and then all of a sudden the jet stream turned around and now you're much colder than it was in April.
COSTELLO: I had to turn the heat on last night.
MYERS: Yes, absolutely.
COSTELLO: That's how cold it was.
Anyway, let's talk about something else, like the runaway bride.
MYERS: Jay Leno?
COSTELLO: Jay Leno.
MYERS: Yes. COSTELLO: We mentioned earlier that Jennifer Wilbanks has been indicted by a grand jury in Gwinnett County, Georgia. And you know the story. She ran off days before her wedding, she made up this story about being abducted. And as you say, Jay Leno had his own take on that.
(BEGIN VIDEO CLIP)
JAY LENO, "THE TONIGHT SHOW WITH JAY LENO": You know, she had the whole story about being kidnapped. Remember?
UNIDENTIFIED MALE: Right. Right.
LENO: Anyway, the district attorney said, "At some point you just can't lie to police." That was his quote. At some point?
(LAUGHTER)
So apparently it's OK to lie to police for awhile. You just have to know when to quit. You can lie for a little while.
Everybody's talking about these "Star Wars" fans dressed in strange costumes? Have you see them? They look like aliens, they look like creatures from outer space or something. I'm sorry, that was outside the Jackson trial yesterday.
(LAUGHTER)
I'm sorry. I was confused. I was in Santa Maria. I forgot.
Michael Jackson was no more than six feet away from me. Closer than you are right now. And I was looking at him. I thought to myself, you know something? I think he's had some work done.
(LAUGHTER)
I don't want to start anything, but, you know, I'm thinking, hey, wait a minute.
UNIDENTIFIED MALE: Yes.
LENO: Looks something different.
I ready in the paper today that Jackson's legal team was disappointed with my testimony. In fact, Tom Mesereau, Michael's lawyer, called me last night. And he said, for Michael's next molestation trial, we're not having you back.
(END VIDEO CLIP)
MYERS: Anyway...
COSTELLO: I need to listen to that again so I can just laugh again.
MYERS: Remember how cute Michael Jackson was as a kid in the Jackson Five? Man, I used to watch that all the time.
COSTELLO: And at times in his adult life he was quite handsome.
MYERS: Yes. Not to himself. That was the problem.
COSTELLO: Let's get right to our DAYBREAK "Eye Openers" now, shall we?
MYERS: A couple of good ones here.
COSTELLO: Oh, yes. True. That's true.
The Indianapolis 500 this is not.
MYERS: And down the stretch they come!
COSTELLO: The city zoo still plays host to their version, as you can see, of the greatest spectacle of racing. Of course it's the annual tortoise race. In case you're wondering, the toll (ph) setter for the Indy 500 topped 225 miles per hour, Chad.
MYERS: Yes.
COSTELLO: The tortoise, 17/100ths of a mile per hour.
MYERS: About as quick as your fingernails grow.
COSTELLO: That's true.
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