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Travel Alert for Europe; Court Term Starts Monday; West Virginia Cliffhanger; Pete Rouse Replaces Rahm Emanuel as Chief of Staff; Brazil Votes for President; School Raises Money by Selling Advertisements on Paperwork Going to Parents

Aired October 03, 2010 - 18:00   ET

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

DON LEMON, CNN ANCHOR: Right now on CNN:

The Rahm era is over. New White House chief of staff takes over. Dave Gergen is here with the preview of the first week on the job for the man who needs to help the president win back American voters.

It is a new day for Supreme Court as well. Its session starts up tomorrow. And porn publisher, Larry Flynt, is a part of it. I'll talk to him about his role in a very controversial case.

And it's a sign of really these tough economic times, a new way to make money for businesses and for schools as well, and they're using your children to do it -- a controversy likely to spread to your neighborhood very soon. We talk this hour with parents and school board members already in the thick of it.

(MUSIC)

LEMON: Hello, everyone. I'm Don Lemon.

But we start tonight with a terror alert. Both the U.S. and Britain are warning citizens to be extra careful when traveling to Europe, especially France and Germany. The new advisories are based on growing concern that al Qaeda and other terror groups may be planning more attacks on westerners, similar to the commando-style attacks carried out in Mumbai, India, two years ago that killed 166 people.

The U.S. State Department urges Americans to use, quote, "common sense" precautions and avoid places where Americans tend to gather. CNN has also learned the Pentagon imposed a curfew practice Friday on U.S. troops in Germany and ordered service members not to wear their uniforms off base.

CNN's senior international correspondent Nic Robertson is in Hamburg, Germany, for the very latest -- Nic.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: What concerns European counterterrorism officials in Europe and has for some time is that when people get to these camps from Germany, from Belgium, from Britain, they form contacts and networks that when they come back to their home countries, they use those contacts and networks to perhaps plan and prepare other attacks, so that remains a concern.

And there is also the concern that other people may have slipped away who weren't under surveillance. And we're told by counterterrorism authorities is that that they had a number of people in this mosque here under surveillance but when they formed these groups and made their plans to go to Pakistan, they did it so quickly it couldn't be stopped. There's a concern that if you have some groups already known to be plotting an attack like this, that there are others who are beyond surveillance, who could have been for training camps, who could be back in Germany, back in Britain already, and could be planning to move ahead with those types of the attack.

So, again, what Ahmed Sidiqi is telling Americans, his American captors in captivity in Afghanistan, that German authorities are not fully aware of and that new information is coming out, we're old, every day from him, that perhaps that is now raising everyone's concern more than it has been over the past few days.

(END VIDEOTAPE)

LEMON: All right. Thank you very much for that, Nic.

Obviously, this is very serious. So, many Americans preparing to travel to Europe are taking the new travel alert in stride.

And CNN's Stephanie Elam has been talking to departing passengers today at Newark International Airport in New Jersey.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT: We've been here at Newark Liberty Airport all day long, talking to people, seeing how they feel about this terror alert. And the one thing that we've heard over and over again is: you got to go ahead and live your life. People are pointing out that plane tickets are expensive. It takes a lot to change it and it costs a lot to change your plane ticket, so they weren't really going to change their plans here. In fact, we spoke to three people today who said, you know what, you just got to continue on with your life as scheduled, as planned.

(BEGIN VIDEO CLIPS)

UNIDENTIFIED FEMALE: I think it's just normal for me. We're just cautious when we're in an unusual area to begin with. And air travel is so common. We're either -- we're either traveling by small plane because we don't have a lot of roads or we're traveling by jet to get out of the states. So, it's just a mode of transportation we take for granted.

And we're still, I think, pay attention, but not necessarily uncomfortable. If they came back and said, we prefer you not traveling or there's something more than just being diligent to saying, we have a lot more activity. UNIDENTIFIED FEMALE: We made the arrangements six months ago. It would probably take an incident of some sort where there was real danger.

UNIDENTIFIED MALE: Because you only live once. I mean, what are you going to do? I can't let these people terrorize me.

(END VIDEO CLIPS)

ELAM: Now, it's interesting to note that those three people we talked to, one had no idea because she was traveling from Alaska, that this alert was coming out. She said she had been on Facebook and hadn't seen it before she got to this airport today.

The other woman heard it before she left from California, the night before on the radio but didn't really feel fazed by it.

And then you definitely heard the tone of the last man that we spoke to and he's echoing a sentiment we heard from other people that we spoke to, saying, you know what, you just got to live your life, you can't be scared, and it would take a lot more than this to keep people from flying and going about their plans.

(END VIDEOTAPE)

LEMON: CNN's Stephanie Elam reporting from Newark Liberty International Airport. Stay with CNN, we'll continue to report on this developing story.

In the meantime, a new Supreme Court term starts tomorrow with a new face on the bench. For the first time ever, three of the nine justices are women.

And as our Kate Bolduan explains, the court has a busy caseload ahead.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT (voice-over): The Supreme Court currently has more than 50 cases on the docket, the most controversial range from immigration reform to free speech challenges.

CROWD (singing): America, America --

BOLDUAN: One of the first deals with anti-gay protests at military funerals. Albert Snyder sued the Westboro Baptist Church and its leader Fred Phelps after they staged a demonstration outside his son's funeral in 2006. Twenty-year-old Marine Lance Corporal Matthew Snyder was killed in Iraq.

ALBERT SNYDER, FATHER OF FALLEN MARINE: It comes down to dignity. No one, I don't care if you're not military, no one should be buried with what the Phelps did to them.

BOLDUAN: This is a case of free speech versus privacy rights. The court will also weigh in on the case of Texas death row inmate Hank Skinner. Skinner says he's innocent of the triple murder he's convicted of committing. Skinner argues he has a civil right to request DNA testing post-conviction to prove it.

HANK SKINNER, DEATH ROW INMATE: All the district attorney's go got to do is turn over the evidence and test it and let chips follow where they may. If I'm innocent, I go home. If I'm guilty, I die. How hard -- what's so hard about that?

BOLDUAN: Prosecutors argue Skinner had his chance to appeal and argue that if he wins, it will open the floodgates to frivolous lawsuits clogging the criminal justice system.

Other high-profile cases include California's attempt to ban the sale of violent games to children. An appeals court said the law violates the First Amendment.

The court will also consider a challenge to an Arizona law cracking down on businesses hiring illegal immigrants. Opponents argue federal law trumps state efforts.

UNIDENTIFIED MALE: Federal government says we have the immigration laws. Arizona kind of throws up its hands and says, yes, but you're not enforcing them.

BOLDUAN: Meanwhile, the newest justice, Elena Kagan, is taking to the bench for her first term, which also marks a historic first for the Supreme Court -- three women serving at the same time.

(on camera): However, Justice Kagan has already recused herself from 25 pending cases because of her work as a former solicitor general. She's withdrawn to prevent any conflict of interest -- leaving the possibility of split four-four decisions as the term kicks off.

Kate Bolduan, CNN, Washington.

(END VIDEOTAPE)

LEMON: All right, Kate.

It may sound strange, but Larry Flynt, you know, the porn producer, he is involved in one of those Supreme Court cases that we just mentioned, but that's not all he has on his mind.

(BEGIN VIDEO CLIP)

LARRY FLYNT, PUBLISHER, HUSTLER MAGAZINE: We know we got a gay senator, you know? We just like to see him come out of the closet.

(END VIDEO CLIP)

LEMON: Potentially explosive secrets from the publisher of "Hustler" magazine when we come back. And don't just sit there. We want you to be part of the conversation. Make sure you join us on social media. Send us a message on Twitter or Facebook. Check out our blog, CNN.com/Don, and look to us on Foursquare, too. We want to hear from you.

(COMMERCIAL BREAK)

LEMON: So, this week, as we mentioned, the Supreme Court is taking up the case involving anti-gay protests during military funerals. At first glance, it probably makes no sense that "Hustler" magazine publisher Larry Flynt is connected to all of this, but this really -- this landmark case against the late Jerry Falwell is being cited by the defense for Fred Phelps, a Westboro Baptist Church leader, who organized those protests. Flynt isn't happy about that but says he can't oppose it.

(BEGIN VIDEOTAPE)

FLYNT: Whatever they were doing in terms of protests in the funeral of someone mourning their dead coming home from the war, I can't think of anything more despicable, more insensitive to do, you know? But Justice Rehnquist in my case, he was a senior Supreme Court justice, and he wrote the majority opinion and he said, "Often, things are done under the guise of the First Amendment with less than admirable intentions, but the government has no right to suppress it up."

So, while we have those great basic freedoms like freedom of speech, freedom of religion, the right to assemble and to petition our government for redress, you know, we really can't get caught in a position, whether it's a mosque in New York or what the issue is or burning the Koran, where we are compromising the basic freedoms that our nation was founded on and it's difficult cases like this one involving the protests at the funerals, the Supreme Court has to weigh in on.

I regret that they're using my precedent-setting case with the Reverend Jerry Falwell. I think it was slightly different that one respect, but in another respect, it wasn't.

LEMON: Let's talk about the Senate race in my home state of Louisiana. We're talking about David Vitter and Charlie Melancon. Of course, they were running -- Charlie Melancon is taking on David Vitter. How did a "Hustler" interview end up in a campaign ad for Melancon?

FLYNT: Well, we were the ones who really added Vitter on this. And it wasn't a question of indiscretion with a prosecutor in Washington, but then we concluded the case, investigation in New Orleans as well, this guy was like the energizer bunny. At the same time, he was going around talking about abstinence, you know -- I mean, he was probably one of the biggest philanderers in the Senate.

So, I'm often accused when I expose people like him, just doing it to expose his sex life.

LEMON: Yes.

FLYNT: Nothing can be further from the truth. What I'm exposing is the hypocrisy.

LEMON: Well, let me ask you --

FLYNT: I don't want --

LEMON: You have offered $1 million for anyone who can come forward to your magazine to say that they have had sex with a high- ranking official. Are you still doing it and have you had any tips yet?

FLYNT: We still do it. We've always got ongoing investigations, but they take a while.

LEMON: So, no tips.

FLYNT: Pardon?

LEMON: No tips yet?

FLYNT: I'll give you a couple clues. We know we got a gay senator, you know? We would just like to get him to come out of the closet, and I think we'll be exposing that in the next few months if he doesn't.

And I had a really great story, a very high-ranking Republican talking to a woman on the cell phone and we had the tape where he said -- oh, she mentioned family values to him. He said, "Oh, family values, that's crap. I just talk about that on television." Well, we felt, boy, this is a real doozy.

LEMON: You have -- you want to give us an idea of either one of these guys?

FLYNT: No, I can't do that.

LEMON: No hints?

FLYNT: But my attorney says you can't use the tape because it was taped in Pennsylvania, which requires two-party consent. You can't use it.

LEMON: Yes.

FLYNT: So -- I mean, those are the kind of things we're up against. But we constantly have interesting investigations going on at all times. We were ready to expose the senator at one time, but then, the guy who was really his lover was actually married and that produced the kind of conflict that we didn't want to (AUDIO BREAK) go to. We wanted better evidence.

(END VIDEOTAPE)

LEMON: Larry Flynt -- stay tuned, everyone. It looks like it may be a nail-biter in West Virginia in that Senate race, a seat held by the Democrats for more than a half century.

Coming up: we'll go to West Virginia for a live report.

(COMMERCIAL BREAK)

LEMON: Time right now for a "CNN Equals Politics" update, keeping an eye on the CNN.com Political Ticker.

We want to check in now with deputy political director, Paul Steinhauser, of course, from "The Best Political Team on Television."

Paul, tell us what's crossing.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Don, we've got some brand-new stuff tonight. We're not taking the weekend off here at all when it comes to campaign politics.

Let's talk about the top Republican Senate campaign chairman, John Cornyn of Texas. He was on Candy Crowley "STATE OF THE UNION" today. And he was talking about the Republican's chances of grabbing back the Senate.

And you know what he said? He predicted it would be a tsunami at the polls. He said, I'm not going to give you a number, but thinks it will be significant.

Now, his Democratic counterpart, Senator Menendez of New Jersey, who heads the Democrats' Senate campaign committee, he said, hey, don't count your chickens before they hatch. And he was really warning against Republicans getting too cocky this November.

Remember, in the battle for the Senate, the Republicans need to win back 10 seats to take control of the chamber.

Here in Washington, Don, all the lawmakers are out of here now. Congress is out through the election. Lawmakers are back in their home districts and states, hitting the campaign trail.

Also hitting the campaign trail this weekend again, President Barack Obama. On Thursday, Don, he goes to -- nearby, in Maryland. He's going to help out the governor there, Democratic Governor Martin O'Malley, who's facing a pretty tough re-election.

And later that night, he goes to Chicago, and he's going to be campaigning with the Democrats' nominee there for the Senate, Alexi Giannoulias, the state treasurer. This is interesting because, remember, this is Barack Obama's old Senate seat and the Democrats want to keep his old Senate seat, as well as Vice President Biden's old Senate seat in party hands if they can come November 2nd.

And finally, check this out, right here, brand-new on the CNN Political Ticker, John Thune, the Republican senator from South Dakota and somebody who may run for the presidency in 2012, he had a warning about the Tea Party. He said, listen, if Republicans take back control of Congress and they don't deliver results quickly, Tea Party activists, maybe -- maybe they want to form a third party in 2012.

Interesting stuff, Don. That's what we have right now on the CNN Political Ticker.

LEMON: Yes, I think they set a splinter group. They'd create a splinter group.

Paul Steinhauser, thank you very much, sir.

For the latest political news, make sure you go to CNNPolitics.com. We'll have another political update, by the way, at 10:00 p.m. Eastern, right here on CNN.

Let's talk more politics now. A Senate race in West Virginia has become a real cliffhanger. Legendary Democrat Robert Byrd held the seat for 52 years until his death this summer. And Democrats didn't think they'd have much trouble holding onto the seat. But the polls have tightened and some pundits are now saying the race is a toss-up.

Our Dana Bash joining us live from Milton, West Virginia.

Dana, where does this race stand right now?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: It is very, very tight, and as you said, Don, it is actually surprising that we have any interest in this race at all because Governor Joe Manchin was supposed to be a shoo-in, Don. I mean, he is somebody who's very, very popular in the state. He's actually one of the most popular governors, Democrat or Republican, in the country.

He has reduced the deficit here. The unemployment realty is lower here than the national average. He's gotten endorsements from both business groups and unions.

So, you know, you might wonder, well, what's the problem? The problem is he's a Democrat. And the people here, even Democrats, registered Democrats, say that they are concerned about Democratic control in Washington.

And that is exactly what his Republican opponent, John Raese, is seizing on as he campaigns and in the television ads that are running nonstop here.

Take a look.

(BEGIN VIDEO CLIP)

JOHN RAESE (R), WEST VIRGINIA SENATE CANDIDATE: Joe Manchin has thrown us under the bus. So, imagine the damage he'll do in Washington with his friend, Barack Obama.

I'm John Raese and I approve of this message, because I won't be a rubber stamp for Obama's cap-and-trade bill.

(END VIDEO CLIP)

BASH: Now, President Obama did not win this state and he is very unpopular here, Don. And so, I talked to the governor just a short while ago and I asked him about that and whether or not that's hurting him.

(BEGIN VIDEO CLIP)

BASH: How much is the president, in all honesty, dragging you down and making this race competitive for you for the Senate?

GOV. JOE MANCHIN (D), WEST VIRGINIA SENATE CANDIDATE: I think it is -- it has made a big difference in my race. It truly has made a difference in my race.

BASH: In what way?

MANCHIN: President Obama's not on the ballot. He will not be a U.S. senator and he's definitely not on the ballot in West Virginia, it's me.

(END VIDEO CLIP)

LEMON: Is he trying to distance himself, Dana?

BASH: He is. He's doing it, it seems, much more aggressively. For example, he told me that the stimulus package, which is something that people here are very mad at because it represents big Washington spending, he said that if you were in Washington looking back, he would have voted against that.

The health care bill -- that is something that just a short while ago probably within the past year he said that maybe he would have supported had he been in Washington and had a vote at the time. And today, he said that he would actually repeal some of that. Not all of it, but some of the health care bill.

So, he's absolutely trying to emphasize his independence, emphasize the things that he says that has made him really popular here -- the fact that he is independent.

And I got to tell you, Don, we walked the parade route with him. We talked to a lot of people here and in the capital, Charleston, we definitely heard there is a lot of support for him here. People, Democrats and Republicans, do love him.

But we did hear people say, even though people who love him say, "I'm worried about sending him to Washington because he is a Democrat and they don't like the fact, what Democrats in Washington are doing. And that is just his fundamental problem and that's why this is a race here.

LEMON: And Dana Bash in West Virginia -- Dana, you know, this is going to be one of the very interesting races that we're going to be paying attention to come November.

BASH: Sure, it will.

LEMON: And there are bunch of them around the country.

BASH: Who knew? There sure are and this one of those that, you know, if you would have asked me if we would have paid attention to this maybe six weeks ago or a month ago, I would have said, no, let's worry about the other ones that are competitive.

LEMON: It's going to be a dramatic evening watching that, a dramatic election.

Thank you, Dana Bash, in West Virginia.

Some major shuffling at the White House to tell you about, Rahm Emanuel has stepped down and Pete Rouse is stepping up as the new chief of staff. Up next: a look at what that means for the Obama administration.

(COMMERCIAL BREAK)

LEMON: There are some big changes at the White House tomorrow when Pete Rouse takes over officially as the new chief of staff. Rahm Emanuel stepped down Friday to run for mayor of Chicago and Rouse has served as Emanuel's deputy and says he doesn't want the job permanently.

So, joining us now are two men who have worked in presidential administrations and know the chief of staff job very well. CNN senior political analysts, David Gergen and Ed Rollins.

Thank you guys for joining us.

So, I want you to listen to how the president described Emanuel and Rouse, and then we'll talk about it.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Obviously, these two gentlemen have slightly different styles.

(LAUGHTER)

OBAMA: I mentioned, for example, this is a couple of years ago, I pointed out that Rahm, when he was a kid, had lost part of his finger in an accident and it was his middle finger. So, I've rendered him mute.

(LAUGHTER)

OBAMA: Pete has never seen a microphone or a TV camera that he likes.

(LAUGHTER)

(END VIDEO CLIP) LEMON: And speaking of that, guys, a very funny skit on "SNL," last night. It was actually the opening sketch of Rahm Emanuel sort of giving Pete Rouse a little bit of advice. Pete Rouse shying away from the camera.

So, what do you think going to be the biggest change here from Rahm Emanuel going forward?

Ed, let's start with you.

ED ROLLINS, CNN SENIOR POLITICAL ANALYST: Everything I know about Pete Rouse, he's worked for over 30 years on the Senate inside of the House, the Congress. He's a good behind-the-scenes guy.

What Emanuel did very effectively is he was the enforcer. He could make things happen and has good political instincts as anybody I've known in the long time I've been around the game.

And so, with a month to go, everything starts coming apart in an election like this and you need someone to make sure as candidates start running away from the president, meaning incumbents, or fundraisers don't want to do things, or the labor unions don't want to back somebody, you need someone to basically be the enforcer. Gergen had that role in our White House, (INAUDIBLE), and at the end of the day, Rahm will be terribly missed.

LEMON: Hey, David, how much of a difference does it make who is -- who is sitting in, you can say that seat, who has the president's ear, who speaks for the president? Is it noticeable when a presidency changes a chief of staff in the middle of the administration?

DAVID GERGEN, CNN POLITICAL ANALYST: It can be extremely important who's in that job. As Ed will remember, many often thought there were three presidencies during President Reagan's eight years in office. The first was the Jim Baker-chief of staff period when things went well, and he got may have legislative accomplishments. The second came under Don Regan as chief of staff, former a CEO. Things went way off the track. They had the Iran-Contra scandal and Regan basically got fired. The third when they brought back in a new team, Howard Baker and the Ken Duberstein (ph) as chief of staff. And that was a much more productive period. But it --

LEMON: What do you think the noticeable difference will be?

GERGEN: I think there's going to be a huge change in style of the office. Clearly, the trust level is high for both, Rahm -- on the president's part for both Rahm and Pete Rouse, but the change in style -- and I don't think there's any doubt Pete Rouse will be a superb manager. People on the staff love him. I've got to know him over the last couple of years. He's a heck of a nice guy.

I think the big questions are the ones, are ones -- the substantive question, is there going to be a pivot to the center by President Obama in the next couple of years? I think that's pretty vital to his governing. People on the left think he needs to pivot more to the left. So far, the appointment suggests continuity, not a change.

LEMON: Ed, do you agree? Do you think there will be more of a pivot to the center and do you think it's important?

ROLLINS: It's very -- it's very important. I don't think that Nancy Pelosi and, if Harry Reid survives, which I don't believe he will, that they're going to basically let this president move. They're not going to encourage him to move to the left. They're going to argue that he wasn't progressive enough. There were a lot of things he should have done. And unfortunately, the members of Congress who lose in this election cycle are going to be the more conservatives, the ones that Rahm Emanuel recruited when he was chairman of the House Congressional Committee and their more conservative members who won Republican districts. The battleground here is the 52 Republican districts that we lost in 2006 and 2008. and if we won a majority again --

LEMON: Here's what I'm wondering.

ROLLINS: -- those same seats.

LEMON: I'm wondering -- obviously, it's his job to carry out the president's mission, the president's agenda. But it's also going to be his job to help the president win back the American voter, David. And that's something the president -- the poll numbers now are showing the president definitely needs some help on that end. Do you agree?

GERGEN: I do. And that's why I think the shake-up at the White House is not complete yet. The president is going to need some new people in there. David Axelrod is leaving in the next few months. We don't know quite when. And David Plouffe is coming in. David Plouffe is an excellent strategist, as is Pete Rouse. But who will be the toughen forcer, as Ed said, who is going to be the person who puts together the communications plan? Who is going to be the person that rebuilds trust with the business community, which is shattered at the moment? How do you do all these things? I think you need some new people in there. I think you need a couple people, frankly, who have not been part of the inner circle, who are heavyweights in their own right and can really, I think, send messages to the public as well as to the Congress that the president is going to have a new presidency in that.

LEMON: Listen, Ed, real quickly, because I'm already running into the next show by asking you this question. But temporary, the president said temporary. We're going to be having this conversation very soon, I would imagine, but how soon do you think we'll be having it about someone else and who might that person be?

ROLLINS: I'm not sure they'll make a change. I think they'll try -- first of all, it's going to be a shock once they've lost these seats that are being projected and then trying to put it back together again with a lame-duck session and moving to -- I think Pete Rouse will be in that job at least until the first of the year and may do a good just job, the president feels very confident that he keeps him there. Obviously, Valerie Jarrett, some other people have been mentioned, part of that inner circle. But my sense is, this may be more permanent than people are talking about today.

LEMON: OK, David, I know you want to say something.

GERGEN: I agree. I agree with Ed.

LEMON: Thank you, both. Appreciate it. OK?

GERGEN: Thank you.

ROLLINS: Thank you.

LEMON: There's a lot of cleanup ahead for parts of the east coast after days of heavy rain and flooding. Parts of North Carolina under water and under a state of emergency right now. We'll have a closer look at the damage for you.

And something new in the kitchen, 3-D technology that can help you plan and prepare meals. I'm interested.

(COMMERCIAL BREAK)

LEMON: Let's check some of the top stores on CNN.

American and British travelers in Europe are being urged to use extra caution, especially in France and Germany. Both the U.S. and U.K. issued the travel alert because of growing concerns a Mumbai- style terror attack could be in the works. India's financial center was the site of three-day terror attack in 2009 that targeted two hotels, a train station and a Jewish cultural center.

CNN has also learned that U.S. troops in Germany were under curfew Friday night and ordered not to wear their uniforms off base. U.S. military officials say the increased security was not because of a specific threat but a response to intelligence about possible terror threats. It's also part of an ongoing assessment of how heightened security impacts base operations in case security must be tightened for a long period of time.

And it could be months before things are back to normal in flooded areas along the east coast. Windsor, North Carolina, is still under state of emergency with much of the town under water right now. North Carolina Governor Beverley Purdue got a close-up look at the damage today as she toured the devastated area.

More uses for modern technology. This time, it's helping to prepare dinner. CNN's Gary Tuchman shows us in today's "Edge of Discovery."

(EDGE OF DISCOVERY)

LEMON: Pretty cool stuff, huh?

Schools across the country are facing tremendous budget cuts, laying off teachers, slashing programs, all in an effort to save money. Now a Massachusetts school district is getting creative with the notes it sends home to some parents. Will it add up to more money for students? That's the question.

(COMMERCIAL BREAK)

LEMON: Now we want to take a look at what will grab the headlines in the week ahead from Washington to Hollywood. Our correspondents have the stories to watch for.

We begin with the White House.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): I'm Suzanne Malveaux at the White House. This week, President Obama will be focusing on the economy. Monday, he's meeting with his Economic Recovery Advisory Board. He then will also highlight the critical role that community colleges play in training and educating community workers. He'll also recognize "Fortune" magazine's 50 most powerful women.

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: I'm Chris Lawrence at the Pentagon. And the big news next week is October 7th. It is the anniversary of the date in which the U.S. launched the first military action into Afghanistan, sort of kicking off the war in Afghanistan there. The secretary of defense, Robert Gates, is going to posthumously award the Medal of Honor to a soldier's family. We're also going to be taking a look back at the arc of the war, how the war there has changed the military, and how it's changed the lives of some of the soldiers who fought in it.

POPPY HARLOW, CNN NEWS CORRESPONDENT: I'm Poppy Harlow in New York. Ahead on Wall Street, this week, investors will get the latest factory orders reading on Monday and another key manufacturing report on Tuesday. and retailers across the country will report their September sales on Thursday. We'll see if consumers are picking up their spending at all or not. Also, ahead, Costco and Pepsi, those two major corporations slated to report their quarter earnings midweek. And finally, on Friday, the all-sport jobs support. We'll get there before the market opens Friday morning and Wall Street is hoping to see any improvement in the unemployment rate. We'll track it all for you on "CNN Money."

BROOKE ANDERSON, CNN NEWS CORRESPONDENT: I'm "Showbiz Tonight's" Brooke Anderson. Here's what we're watching. Closing arguments begin Monday in the trial of Anna Nicole Smith's doctors and her ex- boyfriend on charges they contributed to her death by funneling her drugs. And Facebook alert. We are bracing for big fallout from the opening this weekend of the Facebook movie, "The Social Network." "Showbiz Tonight" is live at 5:00 p.m. eastern and still TV's most provocative entertainment news show at 11:00 p.m. That's on HLN.

(END VIDEOTAPE)

LEMON: All right, thank you, guys.

That's around the country, domestically.

Azadeh Ansari is here. Azadeh is going to take us to Rio, to Brazil. It's not carnival --

AZADEH ANSARI, CNN NEWS CORRESPONDENT: No.

LEMON: But there's a reason to celebrate. There could be.

ANSARI: Exactly. Voters went out to cast their ballots today and election results will be tallied in the Brazilian elections. Now, if Di Mauro, a presidential contender, wins 50 percent of the vote, she could be first female president, not only the first president, but the first female president.

(LAUGHTER)

That's a big deal.

(LAUGHTER)

LEMON: That is a very big deal. Just ask her. She'll probably tell you it's a big deal. So we're going to be watching that closely.

Do you know what the cans chances are? Is it a toss-up?

ANSARI: It's a close call. It's a very close race. Again, we're just going to have to wait to see what happens tomorrow.

LEMON: OK. Remember, was it last year when we were announcing the Nobel Peace Prize and it was President Barack Obama?

ANSARI: Yes. Right.

LEMON: Now, you're going to take us to Stockholm, Sweden, because next week --

ANSARI: All of next week, they'll announce the awards, starting off with the medicine award, starting Monday, and then going into physics, chemistry, literature and economics, and again, the prestigious Peace Prize award. And this year, there's a lot of speculation as to who could get it. Now, a lot of people are actually saying it could be a Chinese dissident. Liou Shoubou (ph) is his name. And should that happen, him, and along with the other laureates who win awards, the award money that they get is about $1.49 million.

LEMON: Liou Shoubou (ph).

ANSARI: Liou Shoubou (ph).

LEMON: Wow. I'm glad you could say that.

(LAUGHTER)

Because I probably would have messed it up.

OK, we'll be watching.

Azadeh Ansari, we appreciate it. Thank you.

ANSARI: Thank you, Don.

LEMON: A Massachusetts school district is hoping business will buy into a new plan. Administrators are launching a pilot program to sell ad space on letters schools send home to parents. The goal is to raise $24,000. But will it work? We'll discuss.

(COMMERCIAL BREAK)

LEMON: For one public school system in Massachusetts, a school board plans to mix the classroom with classifieds. This week, the Peabody school committee voted to allow its elementary school to sell ad spaces on the back of school notices. Parents know how much paperwork coming home with the kids. In Peabody, the back of the notices, the permission slips and other sheets, will look like this, covered with ads the size of business cards. The board is selling the space because the schools need money. But could the walls of school hallways be next? What's going to happen next?

Two members of the Peabody school committee join me now. Beverley Griffin Dunne did not want this to pass. Then, there's David McGeney, who created the concept.

Dave, why the ads? Isn't there another way to raise money here?

DAVID MCGENEY, PEABODY SCHOOL COMMITTEE MEMBER: Well, we can only go to the taxpayers so often. They're tapped out. The parents are certainly tapped out, with all of the fees that they're incurring. So I thought it was time to bring in the business element and make it voluntary and try to raise money that way.

LEMON: Beverley, why were you against the ads on school notices? What's your biggest fear?

BEVERLEY GRIFFIN DUNNE, PEABODY SCHOOL COMMITTEE MEMBER: My biggest fear was a fear of over commercialization for the students, especially at the elementary level. And we had been going through several different proposals about advertising. Some of the things were advertising signs in the athletic complex, and this came up. Dave brought this suggestion in. And it did seem to be a better compromise compared to some other ideas we were being presented with.

LEMON: But you're not the only one who feels this way. The campaign for A Commercial-Free Childhood gave us this response. Here it is. It says, "It is not hard to imagine that students that serve as curriers for ads for pizza parlors and ice cream shops will lobby their parents to go to these locations the second they get home. Participating in this advertising scheme may actually cause a backlash against businesses, since parents may view them as exploiters instead of community partners."

David, why do you say that? What do you say to that?

MCGENEY: Well, if their concerns are that the children are being bombarded with advertisement, that horse has already left the barn. We're trying to take advantage of a blank piece of paper, that is the blank side of a notice that would already be entering the home, and use it in a way beneficial to business owners and our school system. And take some burden away from the taxpayers and the parents with tough fees they're already incurring.

LEMON: Speaking of the parents, David --

DUNNE: And actually, I agree with Dave.

LEMON: Go ahead, Beverley. Sorry.

DUNNE: I'm sorry. I actually agree with Dave. I don't think it's going to create a backlash. I think most people that have spoken with us see it as a way for the businesses to further support the schools. And I think the parents, in turn, will support those businesses.

LEMON: What have parents been saying already? What's been their response?

DUNNE: Very positive so far.

MCGENEY: I've heard positive responses from the parents. Certainly, their concerns are not unlike the concerns Beverley and I have, that the ads be appropriate, but other than that, I think they're in favor of it. They need some relief.

LEMON: We've seen this on the church bulletin, at school programs, when you have to go and watch your kid perform. We see it at pageants. This is nothing unusual when it comes to that, but people think it is unusual when it comes to school.

Beverley, this is a pilot program. It's going to start in elementary schools only. So what will the committee need to see to decide if it's OK to move on and try it in other places?

DUNNE: I think we'll be looking at public sentiment. We'll be making sure that we implement some policies concerning the type of ads that can be placed in the materials. As Dave has said, it is a pilot program, so we'll be watching to make sure it does works. and if it doesn't, we're going to have to find another way to generate revenue. This amount of money, the $24,000, has been built into our budget in a line, so we do need to try to reach that amount of money to keep a balanced budget for the school year.

LEMON: Dave, what if this is a smashing success and money comes in? Will you be satisfied? Do you think Peabody schools will want to find more property to sell as ad space?

MCGENEY: God forbid. I'm probably the last person to ask because I think we should embrace partnerships with businesses in these economic times. But you have to give businesses a compelling reason to be a partner beyond that of just the good will of helping schools. They're already doing an awful lot of that. You have to give them an opportunity to reach their target market.

And I'm a businessman myself. I work for a copier company. I could see the value of blank piece of paper and an opportunity to advertise. So I think it's a win-win. But as Beverley said, we have eight elementary schools, eight little laboratories to try to work the bugs out of this. And I suspect there will be some that will embrace it and others who will not do quite as well. We will learn a lot. And we're learning a lot now actually.

LEMON: Dave and Beverley, thanks to both of you.

MCGENEY: Thank you, Don.

DUNNE: Thank you.

LEMON: Here's something interesting for you. Did you know World War I officially ends today? How is that? We'll explain.

And watch out if you're heading to Vegas. A new hotel has what some people are calling a death ray. It's melted plastic, even burned some guests. We'll show you what that's all about, coming up.

(COMMERCIAL BREAK)

LEMON: So if you haven't watched all week, we'd like to bring you interesting items that you may have missed throughout the week.

And this one, really some market techs and some designers have some explaining to do, because the brand new Vdara Hotel's unique curve and reflective windows have made it an instant Las Vegas landmark. But those same features have turned it into an accident hazard to guests out by the pool. For about 90 minutes a day, sunlight on the building is reflected down to the pool area as an intense concentrated beam much hotter than normal. Just like a magnifying glass, the beam can melt plastic and burn unprotected skin. Can you imagine hanging out by the pool, and then zap? The hotel says it is aware of the problem and it is working on a solution. They've been providing big umbrellas but they want to a permanent solution for that.

The last shot was fired more than 80 years ago, more than 80 years ago, but World War I officially ends today. That's when Germany pays off its financial debt from that conflict, making it the official end. The final $94 million installment wipes out the $35 billion debt imposed when the war ended in 1919. Britain, France and the U.S. set the reparations in the Treaty of Versailles as compensation and punishment for the Germans waging the four-year war. Most of the money goes to private individuals, pension funds and corporations holding the bonds.

I'm Don Lemon. Thanks for joining us. I'll see you back here at 10:00 p.m. Eastern. "Empowered Patient" of CNN's special documentary with our senior medical correspondent Elizabeth Cohen starts right now. See you at 10.