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American Morning

In Afghanistan, Protesters Try to Break into NATO Peackeeping Base; Ticker for Tat Continues in Havana

Aired February 07, 2006 - 08:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ZAIN VERJEE, CNN ANCHOR: Protests across Europe, Asia and the Middle East today, more angry reaction by Muslims to those cartoons depicting Islam's Prophet Muhammad. In Afghanistan, protesters tried to break into a NATO peackeeping base housing Norwegian troops. Those cartoons have been published in some Norwegian papers.
CNN's Matthew Chance brings us the story.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Just a small country, proud of its century's old traditions. Some longstanding tenets of Danish life, like free speech, have now plunged this nation into a diplomatic blizzard.

UNIDENTIFIED MALE: If it is wrong, it could be wrong, of course. But that would be for our courts to say not for a people's court.

UNIDENTIFIED FEMALE: You have certain obligations to what you print, what you say and what you write. And I think that they over stepped that line just a little bit.

CHANCE: But in the offices of the Danish newspaper that published the cartoons last September, staff say they're unrepentant, despite Muslim outrage. This is Denmark, they say, and free speech, not religious dogma, is paramount.

FLEMMING ROSE, EDITOR, "JYLLANDS-POSTEN": I respect Muslims religion by behaving in accordance with their rules when I go to a mosque. I will not draw a cartoon of the prophet in a mosque. I am a strong supporter of freedom of religion. But I think when they ask me to submit myself to their rules and taboos in the public domain, I do not think they are asking of my respect; I think they are asking of my submission.

CHANCE: But among Denmark's 180,000 Muslims, the cartoons have stirred mixed emotions. Other Danes are concerned, too, that this cartoon controversy has left their country under threat.

(END VIDEOTAPE)

VERJEE: And many Arab and Muslim countries around the world have called for a boycott of all Danish products that could have a significant impact on Denmark's economy -- Miles.

O'BRIEN: The ticker for tat continues in Havana. Electronic messages posted at the U.S. consulate there have perturbed el presidente. And now he is responding by hoisting a phalanx of flags.

CNN Havana bureau chief Lucia Newman with more.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN HAVANA BUREAU CHIEF (voice-over): For two weeks, bulldozers and workers labored around the clock in front of the U.S. diplomatic mission to build what President Fidel Castro called a surprise. Monday at dusk, the Cuban leader unveiled that surprise, 138 black flags mounted on enormous flag poles, representing what he calls the Cuban martyrs of U.S.-backed terrorism, including the victims of the Cuban Airlines bombing, allegedly by an anti-Castro militant, now being held in the U.S. on immigration charges.

Today we have dressed in black to symbolize our mourning and pain for the deaths of our loved one, said, Carlos Alberto Gremata (ph), son of one of the bombing victims.

The flag park is, in fact, a response to another symbol, the electronic ticker that for weeks has been beaming human rights messages and news from the fifth floor of the U.S. interest section for all to see.

Even as the flag park was unveiled, the ticker began ticking, asking why was Castro selling cement to Venezuela when Cubans needed it? Followed by quotes by Martin Luther King.

U.S. diplomats say the idea is to communicate free ideas to the Cuban people. But the Cuban government considers it an offensive and unacceptable provocation.

(on camera): There had been wide speculation that Castro's so- called surprise was in fact intended to completely block the view of the electronic message board. But while the flag park is impressive, it's now clear that it's meant to be more of a symbol than a blackout.

Lucia Newman, CNN, Havana.

(WEATHER REPORT)

O'BRIEN: Steelers fans will see something new at today's victory parade. They will see their quarterback's face. That's a lucky beard. We know that now for sure inasmuch as they won. Although Andy Serwer continues, and others, have said kind after hollow victory, because there was about a 14-point -- well and let's face it.

ANDY SERWER, "FORTUNE" MAGAZINE: There were some bad calls, let's leave it at that.

O'BRIEN: It was some good stuff for the Steelers.

But that does not affect Ben Roethlisberger's desire to shave his face, his lucky beard. He said the whiskers would go when he won it all. So he's a man of his word.

VERJEE: Yes, and it sounds like it was an ideal job for David Letterman. I think he did a pretty good job of shaving.

O'BRIEN: Well-known comedian and barber. Let's watch.

(BEGIN VIDEO CLIP)

BEN ROETHLISBERGER, STEELERS QUARTERBACK: So you say you're only going for the beard here?

DAVID LETTERMAN, LATE NIGHT HOST: I don't know what we're going to try to do. I may just turn this over to -- now let me know if this hurts, for God's sakes.

Oh, this is easy!

ROETHLISBERGER: Don't cut my hair!

LETTERMAN: You want to take a little off?

There you go.

ROETHLISBERGER: Be careful now!

LETTERMAN: Come on! Get in there!

ROETHLISBERGER: Don't get in there too far!

(END VIDEO CLIP)

O'BRIEN: Doctors were able to surgically reattach his ear later.

SERWER: I wonder if he can still throw a spiral.

O'BRIEN: He Loses His touch without the beard. All the balance that goes into that, the physics has changed. So has the aerodynamics.

All right, Andy Serwer is here.

SERWER: I am here, and I am -- yes, I don't have a beard, thanks goodness. Going to tell you about some big news coming out of GM this morning. You won't want to miss that.

Plus, new food offerings from Wendy's and Ben & Jerry's. Yum. I think. Stay tuned to AMERICAN MORNING, coming up.

(COMMERCIAL BREAK)

O'BRIEN: They're back. And there is nothing sweet about these bees. They're killer bees. In Florida, the so-called Africanized killer bees have apparently found a new home, and the people living there are none too thrilled about it.

CNN's John Zarrella is there.

(BEGIN VIDEOTAPE) JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): Nearly every day, Dennis Schoveron (ph) finds himself surrounded by stinging, swarming buzzing bees. The sound is enough to give you the hives. These days, Schoveron, a professional bee eradicator, never knows what kind of bees he's going to stick his glove hand into.

DENNIS SCHOVERON, PROFESSIONAL BEE ERADICATOR: I think these may actually be the killer bees.

ZARRELLA: Florida is the latest state that Africanized honey bees, so-called killer bees, are calling home. They've been in the southwestern United States since the 1990's and are responsible for at least 14 deaths. In California, firefighters are given special gear and receive bee response training.

UNIDENTIFIED MALE: Call 911, they're going to send out the fire department. When are they going to send you four guys?

ZARRELLA: It hasn't come to that in Florida, yet. But agricultural officials see these wild killer bees as a growing concern people need to be aware of.

RICHARD DUNAWAY, FLORIDA AGRICULTURE DEPT.: Bees do not go out looking for people to kill as movies have portrayed them. But there is a concern. These are highly defensive bees. They just need to understand what to do in situations: seek cover, get away.

ZARRELLA: They attack in larger swarms, which is what makes them lethal and will chase you for up to 300 yards.

There are 500 bee traps scattered around the state. But Grant is responsible for those in south Florida.

GRANT: Roughly 90.

ZARRELLA, (on camera): You have to check those how often?

GRANT: Every month.

ZARRELLA (voice-over): In a jar, Grant gathers up about 50 bees, the only way to know if these are killer bees is through DNA testing, what agriculture officials are finding is not good.

The more laid back European honey bees are becoming Africanized as they as breed with their mean-spirited relatives.

The bees in Grant's traps were, all things considered, good natured.

GRANT: The geniality (ph) of these bees are about the best they can get.

ZARRELLA (on camera): These particular bees are acting pretty docile then, right? You don't even have long sleeves on.

GRANT: Well, we're lucky. We're lucky man. ZARRELLA: Now that they're here, bee experts say there's no way to get rid of them. You learn to respect them and keep a safe distance.

John Zarrella, CNN, in Western Broward County.

(END VIDEOTAPE)

O'BRIEN: Or was John Zzzzarrella?

Experts caution that people are more likely to be struck by lightning than killed by bees. But because these types of killer bees have some anger-management issues, you might say, they can launch severe attacks, defending their hives even against simple disturbances like a barking dog. It could take a dog down.

VERJEE: Just some advice if either of you are chased by swarms of killer bees, don't jump in water, because when you're underwater, they just hover above the water.

SERWER: Really?

O'BRIEN: Is that a fact?

SERWER: Personal experience here?

VERJEE: That's a fact. And the best advice I can give you is run.

SERWER: Don't smear honey on your body.

O'BRIEN: No, no, no, you should run or not?

VERJEE: You should run.

O'BRIEN: Can you outrun a bee?

VERJEE: If you get in a building fast enough to slam the door.

SERWER: Get the heck away from there.

O'BRIEN: So have you been pursued by bees?

SERWER: Yes, you sound like you really know about this.

O'BRIEN: No, I've not. I've not. But I've known a few people who have, so that's the best advice I can give you on this AMERICAN MORNING.

O'BRIEN: These are tips you don't find in the Manhattan tourist guides, but I'll keep that that in mind as I'm walking the streets here.

SERWER: Or on those other morning programs, right?

O'BRIEN: Yes. No, you would not get that at all. VERJEE: Buisssssness, please.

SERWER: All right, enough of the zzzz. Just coming out from General Motors this morning, some news that was anticipated, some news that wasn't. First, of all, GM is slashing its dividend by 50 percent. That means it's going from $2 a year to $1 a year. That was widely expected. Also some were also thinking that we're going to see some more layoffs from the salary ranks, white-collar layoffs. That is not the case. But there are reductions in health care benefits for white-collar employees, and also pay cuts for top ranks at GM. Rick Wagoner, the CEO, is taking a 50 percent paycut, and so are board members. They are also taking big paycuts as well.

Now as far as market action yesterday, a mixed day on Wall Street. The Dow up, the Nasdaq and the S&P down, you can see here -- well, actually the S&P was up slightly. My bad. That was my bad completely.

Futures are lower this morning. Cisco, there is some concern about their numbers coming out later.

Now a couple food stories. Are you ready for that?

VERJEE: Ready for Pepsi milkshake.

SERWER: All right, but first, let me do breakfast at Wendy's.

VERJEE: OK, then at Tiffany's.

SERWER: You've heard at breakfast at Tiffany's. Exactly, very good.

You can get breakfast at McDonald's, of course, the famous Egg McMuffin. And of course you can get it at Burger King, your Croissandwich and your enormous omelet, but not at Wendy's. They never did it, but they're going to be doing it now. The company rolling out breakfast, because it's the fastest growing category in fast food, and because they think each restaurant, as they call them, can make an additional $160,000 a year. No word yet on what the menu items will be.

O'BRIEN: What's your guess?

SERWER: McBagel...

O'BRIEN: No, it won't be "Mc."

SERWER: No it won't. Yes, they can't do that.

I don't know what they're going to do. Maybe there will be cereal.

O'BRIEN: Cereal? No.

SERWER: That would be boring.

O'BRIEN: A little granola. No, not going there. All right.

SERWER: Now, the Pepsi milkshake. Zain can't wait for this.

VERJEE: Looking forward to that.

SERWER: This is good stuff actually.

VERJEE: Love milkshakes, love Pepsi.

SERWER: This is actually, it's not going to be a Cola product. It's going to be a joint venture between Pepsi and Ben & Jerry's, much like Pepsi does with Starbucks, you know those Starbucks jar drinks, those frappachinos, and double shots? Pepsi does those. They're going to have milkshakes coming out -- these are not them -- in glass bottles coming out this summer, eight ounce glass bottles. It could be great.

VERJEE: What are they going to call it?

SERWER: Chunky monkey flavored milkshakes?

O'BRIEN: Oh, my gosh.

SERWER: Cherry Garcia -- what?

VERJEE: Coke shake.

SERWER: Coke shake.

O'BRIEN: Could be the death of me.

SERWER: I think that's going to be a good thing. I think it's going to be a hit, and I can't wait only a few months to go.

O'BRIEN: Pass the paddles, if you know what I mean.

VERJEE: Thanks.

O'BRIEN: Coming up tomorrow, you guys Sudoku? You know Sudoku?

SERWER: My wife Sudokus incessantly.

VERJEE: It's apparently quite the rage.

What makes the Japanese game of numbers and logic so popular? Miles, it's catching on.

SERWER: You don't have to talk to your husband. That's what's so popular about it.

O'BRIEN: I didn't really know until I had a little shop talk with the king of Sudoku, the puzzle-meister of all puzzle-meister, Will Short. He does "The New York Times" crossword puzzles and has a cottage industry of Sudoku books. He showed me how to do it. And now I'm an expert.

SERWER: Wow, that's scary.

O'BRIEN: That is scary.

We'll tell you about that craze tomorrow. Because we are a full- service broadcast from killer bees, to Sudoku to pilk-shakes.

SERWER: Run.

O'BRIEN: No, don't run.

Coming up, all those closing costs can really add up if you're buying a new home. I know you're excited about the house. You want to get it. All these big numbers. All those zeros, but you should still pay attention, because there are a lot of little charges that can get buried into that house payment. We'll tell you how to avoid being ripped off.

And later, it is now week five of the New You Resolution. Sanjay Gupta will be back. A triple threat for him today. You can call it a Gupta hat trick. He joins us live with a check on how the "New You" folks are doing.

Stay with us.

SERWER: Run!

VERJEE: Don't!

(COMMERCIAL BREAK)

O'BRIEN: You could think of Christopher Columbus as the man who started the real estate boom here in North America back in 1492. Look what it's come to now. Closing costs!

If I asked you which city in America has the highest closing costs for buying a real estate transaction, what would you say? You'd say something like one of the coasts, probably.

Let's look at the list. These are the bottom five. Omaha, Richmond, Phoenix. These are expensive places to close. Now look at the top. Did you guess this one? Minneapolis? Minneapolis! Now Honolulu, I would have guessed. Minneapolis? Knoxville? Birmingham? Cleveland? Kind of surprising numbers there.

And at the root of this are some costs which you're probably not, frankly, paying a lot of attention to as you're buying a house, because you got a lot on your mind. You're buying a house. The numbers are big. But buried in that HUD transaction, that HUD statement, is -- are some numbers that can really get you.

Let's talk to "Money" magazine's Steve Gandel about this. He's been looking into it.

Steve, good to have you with us, first of all.

STEVE GANDEL, "MONEY" MAGAZINE: Thanks. Many Americans get charged hundreds of thousands of extra dollars when they buy a house, and so it's an important financial topic that affects us all.

O'BRIEN: Well, here's the thing. A lot of people use mortgage brokers. And mortgage brokers can be very helpful. But they come -- they got to get paid somehow. And so inherent in that transaction, they as a middleman, you're paying, right?

GANDEL: That's right. If you're going to a mortgage broker for advice, that's not bad. You have to pay for advice. But most people think they're going to the mortgage broker because that mortgage broker has the legal obligation to shop around for them and get them the best deal. That's not true. Actually, the mortgage broker works for you, but it also works for the bank. And many times they have incentive to get you a higher rate than...

O'BRIEN: You might say there's a conflict of interest there if they're working for you and the bank. You can't do both, can you?

GANDEL: There is a conflict of interest and it's one the law allows.

O'BRIEN: So you got to find somebody you trust, first of all. That's important, right?

GANDEL: That's right.

O'BRIEN: Now what about these junk fees? What is that all about?

GANDEL: Well, the way it works now, you get charged for a mortgage in a number of different ways. There's a rate that we all know to shop around for, but then there could be dozens of fees. And they're different for each mortgage broker. And many times they don't refer to actual service provided. In 10 of the 12 mortgages we looked at in Minneapolis, there were these fees that didn't really relate to anything.

O'BRIEN: So you got to shop around. That's number one. Number two -- I don't think a lot of people are aware of this -- you can negotiate just about anything from the real estate commission to these fees that brokers charge you. Correct?

GANDEL: That's right. Most brokers will tell you that if you bring up a fee to them, say, I don't think I should pay that, they'll say, well, this is a standard fee and everyone is going to charge it. That's not true. We found there are many fees. They range widely and not everyone charges them.

So you should look around, you should -- you can -- there is a service that you can buy from something called the National Mortgage Complaint Center for $45. They'll scour your good faith estimate and tell you where fees are appropriate and where you're being overcharged.

O'BRIEN: That's a useful service. We're going to give out that Web site out in just a moment, so be ready for that. It's amazing, I've discovered over the years, how quickly they will backpedal when you challenge on these kinds of things. Oh, yes, I guess we can cut that, we can do this. Because they want this deal to go through in a big way, and there is plenty of fudge in there already, isn't there?

GANDEL: That's right. Mortgage -- real estate brokers don't get paid their commission until the deal closes. Sellers need to move, too. So everyone wants to get on with their life, it's not just the buyers.

O'BRIEN: So keep that in mind. As the buyer, you do actually have -- as much as you want that house, you have a lot of leverage in this because there is a lot of people motivated to make this deal go through, and they'll do some things to make that to happen. Finally, and this is related to that, you really got to stick to your guns when you make a decision, and this is too much.

GANDEL: Right, you want to give yourself a little leeway. Most people close on the day the moving trucks are packed up. You want to try to close about a week before you actually have to move. Therefore, when you get to the closing table and fees are different than what they told you, which can happen, a mortgage broker can tell you what fees will be and the day you get to closing, they can be totally different. So you want to give yourself some time to look over those fees and have the ability to walk away and close on another day if the fees aren't right.

O'BRIEN: So important. Always be able to walk away from that closing table, because that's when the leverage balance shifts in the opposite direction, doesn't it? Let's talk about a couple of these places, these Web sites that you were mentioning. The first one you mentioned was what?

GANDEL: Well, we talked about the National Mortgage Complaint Center.

O'BRIEN: Right. We wanted to show their Web site. Let's see...

GANDEL: It's called americaswatchdog.com. It sounds a little high and mighty, but they're trying -- they're on your side.

O'BRIEN: OK. And you go there, that's a non-profit entity which...

GANDEL: No, that one's a profit entity. That one is a for- profit service that charges $45, goes over your -- goes over your closing statement to make sure there's no fees.

O'BRIEN: So -- but that's worth the money, you think?

GANDEL: Yes, definitely.

O'BRIEN: OK. All right. We'll that other Web...

GANDEL: The other one is called mortgagebroker.com. The mortgage (INAUDIBLE), mtgprofessor.com. It's where you can find mortgage brokers that are on your side and not working for the bank. O'BRIEN: Also a business entity, as well. You have to pay for that service. But you would say, as -- doing your research for "Money" magazine, worth the money to go to these places?

GANDEL: Yes. For at least with the up-front mortgage brokers, you know you're paying them to work on your side. They're out there getting you the best deal. They're obligated to get you the best deal. And that's what you want, you want people who are working on your side.

O'BRIEN: As always, buyer beware. Steve Gandel with "Money" magazine. Thanks very much.

GANDEL: Great.

O'BRIEN: Zain.

VERJEE: Miles, coming up, a "New You" checkup. Our friends are past the half-way point of the program. Has anybody hit the wall? Dr. Sanjay Gupta will join us live for more on that.

And later, our special look at New York City's Fashion Week. Today we'll meet the designer Oprah once called the next big thing in fashion. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

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