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CNN Live At Daybreak

Enron Struggling to Operate

Aired December 04, 2001 - 06:50   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.
KYRA PHILLIPS, CNN ANCHOR: Now for -- switch gears, get a little business news. David Haffenreffer stepping -- standing by in New York.

Good to see you, David.

DAVID HAFFENREFFER, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Kyra.

Well the stock index futures at this early hour continue to point to a bit of a bounce when we see the opening bell this morning. This, after yesterday's pullback in the equity markets. However, futures, they're off their highs right now following the latest round of strikes in the Middle East. The markets ignored strong economic reports on Monday and focused instead on violence in the Middle East and Enron's bankruptcy filing. The Dow industrials lost 87 points. The Nasdaq fell more than 1 percent.

And the Enron drama continues. The beleaguered energy trader says it has secured $1.5 billion in emergency financing from J.P. Morgan Chase and Citigroup. The company filed the biggest bankruptcy in U.S. corporate history Sunday and is struggling to keep operating. Yesterday, it laid off 4,000 workers. In another blow to Enron, the Texas State Power Grid says it has suspended the company's right to use its lines and that means Houston-based Enron can no longer move power within its home state.

And a group of broadband service providers have reached an agreement with Excite@Home to keep high speed Internet service customers connected for three months. The deal includes Cox and Comcast, which will each pay Excite@Home $160 million to deliver uninterrupted service to subscribers. About 16 percent of At Home customers had no online access Sunday after the bankrupt company cut off service to AT&T broadband subscribers.

That is a quick look at business news.

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