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CNN Live At Daybreak
Pro-Syrian Protesters Flood Beirut; Bush Chooses Controversial Bolton as U.N. Ambassador
Aired March 08, 2005 - 06:00 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: Images of American soldiers playing to an international audience this morning. We'll tell you why some people are very unhappy with these images. Do they depict prisoner abuse?
Also, why didn't your senators vote to increase the minimum wage?
And later, TV viewers are smart. You know how companies use product placement to entice you. But did someone rip off "The Donald?"
It is Tuesday, March 8.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, a senior U.S. official says a checkpoint where an Italian journalist was injured was set up to secure the passage of U.S. ambassador to Iraq, John Negroponte. Just minutes ago, Italy's foreign minister called the shooting a tragic accident. But he added that he doesn't believe the U.S. military's version of what happened.
In Beijing, legislation has been proposed that puts more pressure on Taiwan. The move would allow military action if Taiwan moves toward formal independence. Taiwan has responded by announcing war games aimed at repelling an attack.
Secretary of State Condoleezza Rice says Undersecretary of State John Bolton will be nominated to be the new U.S. ambassador to the United Nations. Bolton, an outspoken critic of the world body, has been the administration's point man on non-proliferation matters.
Los Angeles voters head to the polls today. It's a wide open mayoral primary that threatens the second term sought by Mayor James Hahn.
To the forecast center now and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
MYERS: I hope you brought something warm to go home in tonight.
COSTELLO: I did. I was prepared.
MYERS: Good.
COSTELLO: I listen to you.
MYERS: Good.
Thanks.
COSTELLO: Thank you, Chad.
MYERS: All right.
COSTELLO: Syria bends to U.S. pressure and vows to remove its troops from Lebanon. But not so fast. Pro-Syrian protesters are flooding the streets of Beirut this morning. Could it mean a reversal?
Brent Sadler is our man in Lebanon -- good morning, Brent.
What's happening?
BRENT SADLER, CNN CORRESPONDENT: Good morning, Carol.
You join me live in one of the central squares in downtown Beirut, the Lebanese capital. This a day after the presidents of Syria and Lebanon signed off on a deal that should see a withdrawal pretty soon of Syrian troops in parts of Lebanon, but not Syrian troops to leave Lebanon, just to pull back to a line closer to the Syrian border.
That first step is scheduled to be taken at the end of this month. But then a decision for a complete withdrawal, as demanded by the United States and the international community, has been deferred for an unspecified time during much criticism from the U.S. administration.
Now, here in downtown Beirut, we're going to take you live into this gathering assembly of people here. This is going to be a very powerful show of support for Syria. It's been called by Hezbollah, the Islamic resistance group that the United States and Israel condemns as a terrorist organization.
This rally is gathering in front of the headquarters of the United Nations here in downtown Beirut. Hezbollah calling this on two fronts -- one, to say that the pressure that's being applied against Syria will weaken Syria in the struggle with Israel; and, two, it's an attempt by the international community to actually lead efforts to eventually disarm the Islamic resistance. Hezbollah still the only militia that was left with weapons after Lebanon's civil war, that ended back in 1990-1991.
So this is going to be a very important show of strength for Syria's supporters in Lebanon -- Carol. COSTELLO: Brent Sadler live in Beirut this morning.
Thank you.
Turning to defending America now, a disturbing story out of the "Los Angeles Times." U.S. counterintelligence officials say they are concerned that terrorist sympathizers or operatives may have been trying to get work at the CIA and other intelligence agencies. The "L.A. Times" says about 40 Americans who sought jobs at intelligence agencies were turned down because of possible ties to terrorist groups.
A congressional report due out today warns that dozens of terror suspects on federal watch lists are armed. They've been allowed to buy firearms legally in the United States due to gaps in federal gun laws. The government study says the FBI should match its gun buying records against suspected terrorist lists. That's been a problem so far due to laws protecting the privacy rights of gun owners.
President Bush gives a major speech about the war on terrorism this morning before the National Defense University. The presidential speech comes up at 10:15 Eastern. That's this morning. CNN, of course, will bring that to you live.
And President Bush's expected pick for the next U.S. ambassador to the United Nations will likely face a tough Senate confirmation hearing. Condoleezza Rice says the president will name Undersecretary of State John Bolton to the post. He's one of the most outspoken critics of the world body.
Our senior U.N. correspondent Richard Roth has more for you.
(BEGIN VIDEO TAPE)
RICHARD ROTH, CNN CORRESPONDENT (voice-over): The nomination of John Bolton hit the U.N. like a thunderbolt. In or out of government service, Bolton has been a harsh critic of the organization.
JOHN BOLTON, UNITED STATES AMBASSADOR TO U.N. NOMINEE: And you start off with a half of a phrase and a resolution that nobody reads that then gets turned into a political declaration that suddenly becomes a binding international agreement.
ROTH: At the U.N., one diplomat said everyone's alarmed. But Bolton, while acknowledging his U.N. criticism, said at the State Department working closely with others is essential to a safer world.
BOLTON: Close cooperation and the time honored tradition of frank communication is central to achieving our mutually held objectives.
STEPHANE DUJARRIC, U.N. SPOKESMAN: I don't know about what previous vices he may bring here. I think we have nothing against people who do hold us accountable.
ROTH: Some U.S. allies may be puzzled by the choice of Bolton after a charm offensive in Europe by the president.
LAURENCE KORB, FORMER SECRETARY OF DEFENSE: He simply does not believe in the mission of the United Nations. Over the years, he's said it would be OK for the United States not to pay its dues to the United Nations.
ROTH: The Senate minority leader, Democrat Harry Reid, said, "This is a disappointing choice that sends all the wrong signals." But the administration may want Bolton to help reform the view of the U.N., now plagued by scandal, inside America.
CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: John will also help to build a broader base of support here in the United Nations for the U.N. -- in the United States for the U.N. and its mission.
ROTH: As Undersecretary of State for arms control, Bolton has been the leading administration hardliner on Iran and North Korea over suspected nuclear programs. Two years ago, he called North Korean leader Kim Jong Il a tyrannical dictator, to which North Korea labeled Bolton "human scum."
Ambassadors were more diplomatic at the U.N.
ABDULLAH BAALI, ALGERIAN AMBASSADOR TO U.N.: When you join the United Nations and you interact with diplomats like us, then you change your views. We will certainly have interesting discussions.
ROTH (on camera): Secretary of State Rice said John Bolton has a track record of getting things done. At the U.N., that's not always easy. But the U.N. is eager for better ties with the Bush administration and if it takes the political muscle of John Bolton here in New York, they'll just grin and bear it.
Richard Roth, CNN, the United Nations.
(END VIDEO TAPE)
COSTELLO: In other "News Across America" this morning, questions about her leadership have led University of Colorado President Elizabeth Hoffman to resign. Hoffman says those questions made it impossible for her to fix the university's problems. The school has been dealing with controversy over a tenured professor's comments on 9/11 and with a sexual assault and recruiting scandal involving the football team. Hoffman's resignation is effective June 30 or when a successor is named.
Voters in California's Fifth District head to the polls today to replace late Representative Robert Matsui. Matsui's widow is considered the frontrunner to fill his vacated seat. Matsui served for 26 years in Congress before his death January 1.
A Wisconsin woman faces several charges after police found her teenaged daughter chained to a bed. The 15-year-old girl called police on her cell phone. She told police she was handcuffed for allegedly taking a backpack full of marijuana out of the house. The mother is now charged with abuse, false imprisonment and drug possession.
Here's what's just ahead on DAYBREAK.
Fighting for a raise -- why it's almost impossible to make a living when you're making minimum wage.
Plus, Donald Trump would have fired these guys if he could have. We'll tell you about an "Apprentice" scam.
And Russell Crowe reflects on his run-in with the law.
Stick around.
(BEGIN VIDEO CLIP)
WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": Bonds are basically IOUs. When you invest in a bond, you are lending money to the issuer. The issuer may be the federal government, if you're buying a government bond. Or it may be a corporation if you're buying a corporate bond. And what you get in return for lending that money is the promise of steady interest payments, usually twice a year, and also the promise that you'll get your principal back when the bond comes due, and that could be anywhere from a year or, in the case of long-term bonds, 30 years.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COSTELLO: Still to come on DAYBREAK, did a company rip off "The Donald?" details on a new lawsuit. And the evidence may have been right in front of "Apprentice" contestants. Shocker.
DAYBREAK will return in a minute.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 6:13 Eastern.
Here's what's all new this morning.
President Bush is expected to have an update on the war on terror during a speech today at the National Defense University. CNN will bring you live coverage of that speech. It starts at 10:15 Eastern time. That's this morning.
As many as 134 inmates were killed by a prison fire in the Dominican Republic. The so-called Vietnam block of the prison was dangerously overcrowded at the time. Authorities say up to 178 inmates were being kept in a space meant for just 25 people.
In money news, when is a dime worth more than a million bucks? When it's a rare coin from 1894. Take a look. The San Francisco dime was sold for more than $1.3 million at auction. That's the most ever paid for a U.S. dime.
In culture, Ed McMahon is expected to remain in a hospital for a few more days. The legendary sidekick suffered a mild concussion after falling in his Los Angeles home a few days ago. His spokeswoman says he's doing fine, though.
In sports, Darryl Strawberry is back with the New York Mets, but only for a week. The former All Star will serve as a special instructor in spring training. He says he plans on teaching the young players how to avoid the mistakes that he made.
Good for him -- Chad.
MYERS: Hey, good morning, Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
Those are the latest headlines for you this morning.
When we come back, a new lawsuit over the hit TV show "Apprentice." Did someone try to dodge their obligations to "The Donald?"
And we all know it's hard to live on minimum wage, so why did the U.S. Senate decide not to work on increasing it? Yes, they defeated it again.
We'll be right back.
(COMMERCIAL BREAK)
CHRIS HUNTINGTON, CNN CORRESPONDENT: Good morning.
I'm Chris Huntington live at the Nasdaq market site with a business update here.
Well, if you've heard of product placement, get ready for a big lawsuit involving "Apprentice." Mark Burnett, the producer of the show, is suing a company called Madison Road Entertainment. Madison Road presented itself to Burnett as the exclusive representative of several big name companies trying to get products placed on the very popular show starring Donald Trump. In fact, according to the lawsuit, the company's products would be placed on the show for a fee as high as $7 million.
But then, in fact, what would happen is the company would only pay about $2 million to $3 million back to the company that it initially collected from Burnett and the other producers on the show.
According to other reports, some of the products placed on "Apprentice" include products from Mars, the candy maker, and Levi's jeans. There was even one show featuring New York Mets baseball star Mike Piazza brushing his teeth with Crest toothpaste. Both of the companies reportedly targets of the scam.
Well, in the stock market news, the futures are pointing to a lower open. The Dow Industrials touched up very close to the 11,000 mark the market has not cleared since June of 2001. The Nasdaq was higher yesterday, but look for it to close -- to open a little bit on the lower side today.
A stock to watch, Circuit City. After the closing bell yesterday, it rejected a $3.25 billion takeover offer. It says it has no plans to be up for sale.
Stay tuned for more DAYBREAK after this.
(COMMERCIAL BREAK)
COSTELLO: It has been eight years since the federal minimum wage went up. Will it be eight more? The Senate said no twice to a hike in the minimum wage. It will remain at $5.15 an hour.
Some background.
Republicans wanted to raise it by $1.10 over 18 months. Democrats wanted to raise it to $7.25 over 26 months.
(BEGIN VIDEO CLIP)
SEN. TED KENNEDY (D), MASSACHUSETTS: We find the Americans are working harder. We find a dramatic increase in productivity. We see an explosions of costs. We see the purchasing power of the minimum wage going down to its second lowest. And we see that so many of these individuals that are below the line of poverty end up in bankruptcy.
SEN. RICK SANTORUM (R-PA), ARMED SERVICES COMMITTEE: What we need to do is look at how we provide a responsible floor for workers without having what Senator Sununu suggested, having an impact on the economy which could be inflationary and damaging to all workers, as well as particularly lower wage workers with high rates of inflation.
(END VIDEO CLIP)
COSTELLO: I know what you're thinking. Say what? Keep in mind, though, during the same period, members of Congress have raised their own salaries by a total of $28,500. So, why no raise for the little guy?
Ellen McGirt from "Money" magazine joins us to cut through the bull.
Thanks for being with us this morning, Ellen.
Before we begin, we want to put up a graphic, because if you're making $5.15 an hour, you're not making very much money per year.
Take a look at that, $10,712. It would be very difficult to live on that. ELLEN MCGIRT, "MONEY" MAGAZINE: It would. And what most people don't realize is that that's actually below the federal poverty level. The federal poverty level plays out to be about $7.55 an hour for a family of three. So at that point, you're really scraping by.
COSTELLO: So why haven't they raised it in eight years?
MCGIRT: You know, your intro said it all besides the bull, which is what is it for the little guy. And it always shakes out along party lines. The Democrats, the party of the little guy, is being supported by labor for this across-the-board hike. The Republicans, who are accused of being not for the little guy and being pro- business, are putting in all these sort of pro-business special provisos in the bill that actually would be hurtful to the worker by taking away some benefits, like overtime pay and things like that.
COSTELLO: That's not what they say, though, the Republicans.
MCGIRT: Of course not.
COSTELLO: I mean when you look at Rick Santorum's idea, $1.10 over, what, 16 months? I mean like big deal. Why couldn't they at least pass that?
MCGIRT: No, no, I know, it's absolutely true, but it does. It always breaks down across philosophy, who's going to be paying what, and should government be telling business what to do. And just like in the Social Security debate, you're going to see a lot of that and competing studies and very serious sounding people who are going to look at the same information and say a raise is good for business and good for the economy and good for workers, or it's bad for business and bad for economy and bad for the workers.
COSTELLO: Well, one of the big criticisms is if you raise the minimum wage, then that will hurt small businesses. They won't be able to hire as many workers. Maybe they'll have to lay off workers. It may drive them out of business.
Is all of that really true?
MCGIRT: Looking at the data from the last two raises -- one was from '96-'97, which, of course, was an economic boom time -- the answer across-the-board is no. Now, the same thing was true for '90- '91, which was more of an economic dodgy time, going into a bit of a recession, very much like we are now. Again, the answer is across- the-board, no.
Can you always find individual cases where small businesses were hurt? Of course. And it hit a certain key population within the low wage worker, which were teenagers. They make less than 25 percent of the entire pool. But it's very serious, especially for urban teenage youth and black kids who are looking for jobs to transition out of difficult environments.
So it did hurt that population. But across-the-board, it actually was good for business. COSTELLO: So, see, it's all politics which, of course, as we said, is bull.
Quickly, will this issue be revisited soon?
MCGIRT: Absolutely. You're going to see the staged debate yesterday take on a larger forum as it goes to the midterm elections. 2006 is going to be the year where we're going to take it on a state by state basis. Remember, 14 states and the District of Columbia have a higher minimum wage and we're going to see the Democrats taking this on a state by state basis across the country and see where it plays out.
COSTELLO: Yes, I think it's $7 here in New York State.
MCGIRT: That's right, which is brand new.
COSTELLO: Yes.
Ellen McGirt from "Money" magazine.
Thank you for joining DAYBREAK this morning.
MCGIRT: Thanks for having me.
COSTELLO: The minimum wage measures would have been part of the greater bankruptcy bill. This is that tack on part. That bill came up for a vote as early as today. Actually, it will come up for a vote as early as today. The legislation changes the rules concerning personal bankruptcy, known as Chapter 7. The change could force many people into debt repayment plans. We'll talk much more about that on CNN in the hours to come.
Still much more ahead on DAYBREAK.
We've got some new details concerning the shooting of an Italian hostage, including the purpose of that military checkpoint.
Also ahead, will new home video of American soldiers in Iraq renew questions about abuse? We'll tell you about it next.
(COMMERCIAL BREAK)
COSTELLO: New video shows a side of American soldiers that will not please some people who see it today. But there are two sides to every story.
It is Tuesday, March 8.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers. Now in the news, pro-Syrian demonstrations underway in Beirut right now. You're looking at a live picture on the streets of Beirut. This protest called by Hezbollah to counter anti-Syrian protesters, who have demanded Syrian troops leave the country. Leaders from the two countries mapped out a pullout plan yesterday. We're talking about Lebanon and Syria.
President Bush gives a major speech about the war on terrorism this morning before the National Defense University. CNN does plan live coverage at 10:15 a.m. Eastern.
The brother of Michael Jackson's accuser is expected to return to the stand today. The boy testified that he twice saw Jackson grope his older brother.
A 90-day ban. Reverend Al Sharpton plans to call on radio and TV stations to ban playing music by performers who use violence in their lyrics. The move comes after last week's shootout between rappers at a New York radio station that left one man wounded.
To the forecast center now -- good morning, Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
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 March 8, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Images of American soldiers playing to an international audience this morning. We'll tell you why some people are very unhappy with these images. Do they depict prisoner abuse?
Also, why didn't your senators vote to increase the minimum wage?
And later, TV viewers are smart. You know how companies use product placement to entice you. But did someone rip off "The Donald?"
It is Tuesday, March 8.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, a senior U.S. official says a checkpoint where an Italian journalist was injured was set up to secure the passage of U.S. ambassador to Iraq, John Negroponte. Just minutes ago, Italy's foreign minister called the shooting a tragic accident. But he added that he doesn't believe the U.S. military's version of what happened.
In Beijing, legislation has been proposed that puts more pressure on Taiwan. The move would allow military action if Taiwan moves toward formal independence. Taiwan has responded by announcing war games aimed at repelling an attack.
Secretary of State Condoleezza Rice says Undersecretary of State John Bolton will be nominated to be the new U.S. ambassador to the United Nations. Bolton, an outspoken critic of the world body, has been the administration's point man on non-proliferation matters.
Los Angeles voters head to the polls today. It's a wide open mayoral primary that threatens the second term sought by Mayor James Hahn.
To the forecast center now and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
MYERS: I hope you brought something warm to go home in tonight.
COSTELLO: I did. I was prepared.
MYERS: Good.
COSTELLO: I listen to you.
MYERS: Good.
Thanks.
COSTELLO: Thank you, Chad.
MYERS: All right.
COSTELLO: Syria bends to U.S. pressure and vows to remove its troops from Lebanon. But not so fast. Pro-Syrian protesters are flooding the streets of Beirut this morning. Could it mean a reversal?
Brent Sadler is our man in Lebanon -- good morning, Brent.
What's happening?
BRENT SADLER, CNN CORRESPONDENT: Good morning, Carol.
You join me live in one of the central squares in downtown Beirut, the Lebanese capital. This a day after the presidents of Syria and Lebanon signed off on a deal that should see a withdrawal pretty soon of Syrian troops in parts of Lebanon, but not Syrian troops to leave Lebanon, just to pull back to a line closer to the Syrian border.
That first step is scheduled to be taken at the end of this month. But then a decision for a complete withdrawal, as demanded by the United States and the international community, has been deferred for an unspecified time during much criticism from the U.S. administration.
Now, here in downtown Beirut, we're going to take you live into this gathering assembly of people here. This is going to be a very powerful show of support for Syria. It's been called by Hezbollah, the Islamic resistance group that the United States and Israel condemns as a terrorist organization.
This rally is gathering in front of the headquarters of the United Nations here in downtown Beirut. Hezbollah calling this on two fronts -- one, to say that the pressure that's being applied against Syria will weaken Syria in the struggle with Israel; and, two, it's an attempt by the international community to actually lead efforts to eventually disarm the Islamic resistance. Hezbollah still the only militia that was left with weapons after Lebanon's civil war, that ended back in 1990-1991.
So this is going to be a very important show of strength for Syria's supporters in Lebanon -- Carol. COSTELLO: Brent Sadler live in Beirut this morning.
Thank you.
Turning to defending America now, a disturbing story out of the "Los Angeles Times." U.S. counterintelligence officials say they are concerned that terrorist sympathizers or operatives may have been trying to get work at the CIA and other intelligence agencies. The "L.A. Times" says about 40 Americans who sought jobs at intelligence agencies were turned down because of possible ties to terrorist groups.
A congressional report due out today warns that dozens of terror suspects on federal watch lists are armed. They've been allowed to buy firearms legally in the United States due to gaps in federal gun laws. The government study says the FBI should match its gun buying records against suspected terrorist lists. That's been a problem so far due to laws protecting the privacy rights of gun owners.
President Bush gives a major speech about the war on terrorism this morning before the National Defense University. The presidential speech comes up at 10:15 Eastern. That's this morning. CNN, of course, will bring that to you live.
And President Bush's expected pick for the next U.S. ambassador to the United Nations will likely face a tough Senate confirmation hearing. Condoleezza Rice says the president will name Undersecretary of State John Bolton to the post. He's one of the most outspoken critics of the world body.
Our senior U.N. correspondent Richard Roth has more for you.
(BEGIN VIDEO TAPE)
RICHARD ROTH, CNN CORRESPONDENT (voice-over): The nomination of John Bolton hit the U.N. like a thunderbolt. In or out of government service, Bolton has been a harsh critic of the organization.
JOHN BOLTON, UNITED STATES AMBASSADOR TO U.N. NOMINEE: And you start off with a half of a phrase and a resolution that nobody reads that then gets turned into a political declaration that suddenly becomes a binding international agreement.
ROTH: At the U.N., one diplomat said everyone's alarmed. But Bolton, while acknowledging his U.N. criticism, said at the State Department working closely with others is essential to a safer world.
BOLTON: Close cooperation and the time honored tradition of frank communication is central to achieving our mutually held objectives.
STEPHANE DUJARRIC, U.N. SPOKESMAN: I don't know about what previous vices he may bring here. I think we have nothing against people who do hold us accountable.
ROTH: Some U.S. allies may be puzzled by the choice of Bolton after a charm offensive in Europe by the president.
LAURENCE KORB, FORMER SECRETARY OF DEFENSE: He simply does not believe in the mission of the United Nations. Over the years, he's said it would be OK for the United States not to pay its dues to the United Nations.
ROTH: The Senate minority leader, Democrat Harry Reid, said, "This is a disappointing choice that sends all the wrong signals." But the administration may want Bolton to help reform the view of the U.N., now plagued by scandal, inside America.
CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: John will also help to build a broader base of support here in the United Nations for the U.N. -- in the United States for the U.N. and its mission.
ROTH: As Undersecretary of State for arms control, Bolton has been the leading administration hardliner on Iran and North Korea over suspected nuclear programs. Two years ago, he called North Korean leader Kim Jong Il a tyrannical dictator, to which North Korea labeled Bolton "human scum."
Ambassadors were more diplomatic at the U.N.
ABDULLAH BAALI, ALGERIAN AMBASSADOR TO U.N.: When you join the United Nations and you interact with diplomats like us, then you change your views. We will certainly have interesting discussions.
ROTH (on camera): Secretary of State Rice said John Bolton has a track record of getting things done. At the U.N., that's not always easy. But the U.N. is eager for better ties with the Bush administration and if it takes the political muscle of John Bolton here in New York, they'll just grin and bear it.
Richard Roth, CNN, the United Nations.
(END VIDEO TAPE)
COSTELLO: In other "News Across America" this morning, questions about her leadership have led University of Colorado President Elizabeth Hoffman to resign. Hoffman says those questions made it impossible for her to fix the university's problems. The school has been dealing with controversy over a tenured professor's comments on 9/11 and with a sexual assault and recruiting scandal involving the football team. Hoffman's resignation is effective June 30 or when a successor is named.
Voters in California's Fifth District head to the polls today to replace late Representative Robert Matsui. Matsui's widow is considered the frontrunner to fill his vacated seat. Matsui served for 26 years in Congress before his death January 1.
A Wisconsin woman faces several charges after police found her teenaged daughter chained to a bed. The 15-year-old girl called police on her cell phone. She told police she was handcuffed for allegedly taking a backpack full of marijuana out of the house. The mother is now charged with abuse, false imprisonment and drug possession.
Here's what's just ahead on DAYBREAK.
Fighting for a raise -- why it's almost impossible to make a living when you're making minimum wage.
Plus, Donald Trump would have fired these guys if he could have. We'll tell you about an "Apprentice" scam.
And Russell Crowe reflects on his run-in with the law.
Stick around.
(BEGIN VIDEO CLIP)
WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": Bonds are basically IOUs. When you invest in a bond, you are lending money to the issuer. The issuer may be the federal government, if you're buying a government bond. Or it may be a corporation if you're buying a corporate bond. And what you get in return for lending that money is the promise of steady interest payments, usually twice a year, and also the promise that you'll get your principal back when the bond comes due, and that could be anywhere from a year or, in the case of long-term bonds, 30 years.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COSTELLO: Still to come on DAYBREAK, did a company rip off "The Donald?" details on a new lawsuit. And the evidence may have been right in front of "Apprentice" contestants. Shocker.
DAYBREAK will return in a minute.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 6:13 Eastern.
Here's what's all new this morning.
President Bush is expected to have an update on the war on terror during a speech today at the National Defense University. CNN will bring you live coverage of that speech. It starts at 10:15 Eastern time. That's this morning.
As many as 134 inmates were killed by a prison fire in the Dominican Republic. The so-called Vietnam block of the prison was dangerously overcrowded at the time. Authorities say up to 178 inmates were being kept in a space meant for just 25 people.
In money news, when is a dime worth more than a million bucks? When it's a rare coin from 1894. Take a look. The San Francisco dime was sold for more than $1.3 million at auction. That's the most ever paid for a U.S. dime.
In culture, Ed McMahon is expected to remain in a hospital for a few more days. The legendary sidekick suffered a mild concussion after falling in his Los Angeles home a few days ago. His spokeswoman says he's doing fine, though.
In sports, Darryl Strawberry is back with the New York Mets, but only for a week. The former All Star will serve as a special instructor in spring training. He says he plans on teaching the young players how to avoid the mistakes that he made.
Good for him -- Chad.
MYERS: Hey, good morning, Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
Those are the latest headlines for you this morning.
When we come back, a new lawsuit over the hit TV show "Apprentice." Did someone try to dodge their obligations to "The Donald?"
And we all know it's hard to live on minimum wage, so why did the U.S. Senate decide not to work on increasing it? Yes, they defeated it again.
We'll be right back.
(COMMERCIAL BREAK)
CHRIS HUNTINGTON, CNN CORRESPONDENT: Good morning.
I'm Chris Huntington live at the Nasdaq market site with a business update here.
Well, if you've heard of product placement, get ready for a big lawsuit involving "Apprentice." Mark Burnett, the producer of the show, is suing a company called Madison Road Entertainment. Madison Road presented itself to Burnett as the exclusive representative of several big name companies trying to get products placed on the very popular show starring Donald Trump. In fact, according to the lawsuit, the company's products would be placed on the show for a fee as high as $7 million.
But then, in fact, what would happen is the company would only pay about $2 million to $3 million back to the company that it initially collected from Burnett and the other producers on the show.
According to other reports, some of the products placed on "Apprentice" include products from Mars, the candy maker, and Levi's jeans. There was even one show featuring New York Mets baseball star Mike Piazza brushing his teeth with Crest toothpaste. Both of the companies reportedly targets of the scam.
Well, in the stock market news, the futures are pointing to a lower open. The Dow Industrials touched up very close to the 11,000 mark the market has not cleared since June of 2001. The Nasdaq was higher yesterday, but look for it to close -- to open a little bit on the lower side today.
A stock to watch, Circuit City. After the closing bell yesterday, it rejected a $3.25 billion takeover offer. It says it has no plans to be up for sale.
Stay tuned for more DAYBREAK after this.
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COSTELLO: It has been eight years since the federal minimum wage went up. Will it be eight more? The Senate said no twice to a hike in the minimum wage. It will remain at $5.15 an hour.
Some background.
Republicans wanted to raise it by $1.10 over 18 months. Democrats wanted to raise it to $7.25 over 26 months.
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SEN. TED KENNEDY (D), MASSACHUSETTS: We find the Americans are working harder. We find a dramatic increase in productivity. We see an explosions of costs. We see the purchasing power of the minimum wage going down to its second lowest. And we see that so many of these individuals that are below the line of poverty end up in bankruptcy.
SEN. RICK SANTORUM (R-PA), ARMED SERVICES COMMITTEE: What we need to do is look at how we provide a responsible floor for workers without having what Senator Sununu suggested, having an impact on the economy which could be inflationary and damaging to all workers, as well as particularly lower wage workers with high rates of inflation.
(END VIDEO CLIP)
COSTELLO: I know what you're thinking. Say what? Keep in mind, though, during the same period, members of Congress have raised their own salaries by a total of $28,500. So, why no raise for the little guy?
Ellen McGirt from "Money" magazine joins us to cut through the bull.
Thanks for being with us this morning, Ellen.
Before we begin, we want to put up a graphic, because if you're making $5.15 an hour, you're not making very much money per year.
Take a look at that, $10,712. It would be very difficult to live on that. ELLEN MCGIRT, "MONEY" MAGAZINE: It would. And what most people don't realize is that that's actually below the federal poverty level. The federal poverty level plays out to be about $7.55 an hour for a family of three. So at that point, you're really scraping by.
COSTELLO: So why haven't they raised it in eight years?
MCGIRT: You know, your intro said it all besides the bull, which is what is it for the little guy. And it always shakes out along party lines. The Democrats, the party of the little guy, is being supported by labor for this across-the-board hike. The Republicans, who are accused of being not for the little guy and being pro- business, are putting in all these sort of pro-business special provisos in the bill that actually would be hurtful to the worker by taking away some benefits, like overtime pay and things like that.
COSTELLO: That's not what they say, though, the Republicans.
MCGIRT: Of course not.
COSTELLO: I mean when you look at Rick Santorum's idea, $1.10 over, what, 16 months? I mean like big deal. Why couldn't they at least pass that?
MCGIRT: No, no, I know, it's absolutely true, but it does. It always breaks down across philosophy, who's going to be paying what, and should government be telling business what to do. And just like in the Social Security debate, you're going to see a lot of that and competing studies and very serious sounding people who are going to look at the same information and say a raise is good for business and good for the economy and good for workers, or it's bad for business and bad for economy and bad for the workers.
COSTELLO: Well, one of the big criticisms is if you raise the minimum wage, then that will hurt small businesses. They won't be able to hire as many workers. Maybe they'll have to lay off workers. It may drive them out of business.
Is all of that really true?
MCGIRT: Looking at the data from the last two raises -- one was from '96-'97, which, of course, was an economic boom time -- the answer across-the-board is no. Now, the same thing was true for '90- '91, which was more of an economic dodgy time, going into a bit of a recession, very much like we are now. Again, the answer is across- the-board, no.
Can you always find individual cases where small businesses were hurt? Of course. And it hit a certain key population within the low wage worker, which were teenagers. They make less than 25 percent of the entire pool. But it's very serious, especially for urban teenage youth and black kids who are looking for jobs to transition out of difficult environments.
So it did hurt that population. But across-the-board, it actually was good for business. COSTELLO: So, see, it's all politics which, of course, as we said, is bull.
Quickly, will this issue be revisited soon?
MCGIRT: Absolutely. You're going to see the staged debate yesterday take on a larger forum as it goes to the midterm elections. 2006 is going to be the year where we're going to take it on a state by state basis. Remember, 14 states and the District of Columbia have a higher minimum wage and we're going to see the Democrats taking this on a state by state basis across the country and see where it plays out.
COSTELLO: Yes, I think it's $7 here in New York State.
MCGIRT: That's right, which is brand new.
COSTELLO: Yes.
Ellen McGirt from "Money" magazine.
Thank you for joining DAYBREAK this morning.
MCGIRT: Thanks for having me.
COSTELLO: The minimum wage measures would have been part of the greater bankruptcy bill. This is that tack on part. That bill came up for a vote as early as today. Actually, it will come up for a vote as early as today. The legislation changes the rules concerning personal bankruptcy, known as Chapter 7. The change could force many people into debt repayment plans. We'll talk much more about that on CNN in the hours to come.
Still much more ahead on DAYBREAK.
We've got some new details concerning the shooting of an Italian hostage, including the purpose of that military checkpoint.
Also ahead, will new home video of American soldiers in Iraq renew questions about abuse? We'll tell you about it next.
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COSTELLO: New video shows a side of American soldiers that will not please some people who see it today. But there are two sides to every story.
It is Tuesday, March 8.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers. Now in the news, pro-Syrian demonstrations underway in Beirut right now. You're looking at a live picture on the streets of Beirut. This protest called by Hezbollah to counter anti-Syrian protesters, who have demanded Syrian troops leave the country. Leaders from the two countries mapped out a pullout plan yesterday. We're talking about Lebanon and Syria.
President Bush gives a major speech about the war on terrorism this morning before the National Defense University. CNN does plan live coverage at 10:15 a.m. Eastern.
The brother of Michael Jackson's accuser is expected to return to the stand today. The boy testified that he twice saw Jackson grope his older brother.
A 90-day ban. Reverend Al Sharpton plans to call on radio and TV stations to ban playing music by performers who use violence in their lyrics. The move comes after last week's shootout between rappers at a New York radio station that left one man wounded.
To the forecast center now -- good morning, Chad.
MYERS: Good morning, Carol.
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