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Iraq's Constitutional Referendum; Senate Majority Leader Bill Frist Subpoenaed; Russian City Attacked; Suicide of Syrian Minister Stirs Speculation

Aired October 13, 2005 - 14:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Stepped up security. Will Iraqi voters be able to take the next step towards forming a democracy? We're covering the constitutional referendum.
Shootout in the streets. Innocent bystanders caught in the crossfire of a Russian rebellion.

And should New Orleans gamble its future on casinos? A controversial plan to rebuild after the hurricane.

From the CNN Center in Atlanta, I'm Fredricka Whitfield, in for Kyra Phillips. This hour of CNN's LIVE FROM starts right now.

A milestone looms in Iraq, and Iraqi forces are ready. An upbeat report via satellite from Task Force Liberty in Tikrit to the commander in chief in Washington. U.S. troops say their Iraqi counterparts are taking the lead in securing Iraq for Saturday's crucial referendum on a post-war constitution. President Bush says that country's future is at stake.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm very impressed that the Iraqi government has continued to work to have a constitution that attracts Sunnis and Shias and Kurds. They worked hard to get a constitution, and now the people of Iraq are going to get to vote once again on a constitution, in this case.

And I want to thank you for providing the security necessary for people to exercise their free will.

1ST LT. GREG MURPHY, TASK FORCE LIBERTY: Sir, we're prepared to do whatever it takes to make this thing a success. But the important thing here is that the Iraqi army and the Iraqi security forces, they're ready and they're committed, and they're going to make this thing happen.

Back in January, when we were preparing for that election, we had to lead the way. We set up the coordination and we made the plan. We're really happy to see during the preparation for this one, sir, they're doing everything. They're making the plans, they're calling each other. They've got it laid out.

(END VIDEO CLIP) WHITFIELD: Whether the same can be said of constitutional negotiators, political factions, religious blocks, isn't so clear. We do know a last-second compromise with one of the holdout Sunni groups has changed the dynamics of Saturday's vote and maybe a whole lot more.

Some Iraqis are voting already, and we get the latest now from CNN's Aneesh Raman in Baghdad.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT: Early voting under way in Iraq's constitutional referendum. Iraqis who are in the hospital, also detainees who are not convicted, already getting a chance to vote yes or no on the country's draft constitution. That while the rest of the country waits for Saturday's vote.

Some 15.5 million Iraqis are registered to vote in this referendum, an increase in numbers since the January elections, largely due to an increased participation of the Sunni community. Bringing them into the political process is of course seen as critical to bringing stability to Iraq.

That, of course, a main reason why the deal that was struck on Wednesday is being seen as a political breakthrough of sorts. It was between the Shia-Kurd coalition and the country's largest Sunni political party.

The deal amended the draft constitution, made more vague the process of debaathification. It also said Arabic would be an official language throughout the country, including in the Kurdish-controlled north. But it also set in place a mechanism for further change of this constitution.

In mid-December, a general election will put in place a permanent government. They will then have four months to put in place another constitutional committee that can change any or all of this draft document. And then within six month of those December elections, another constitutional referendum is set to take place.

So, essentially, according to this deal, whether or not the constitution is voted up or down, another referendum will be put forward to the Iraqi people. Among some Iraqis, it begs the obvious question, why risk their lives and vote on Saturday? Nonetheless, turnout expected to be substantial comparative to January.

They are expecting an increase in turnout. Security very tight as well. The borders will soon be closed, traffic will be limited, and curfews will be imposed to try and make sure that Saturday's election goes off as smoothly as possible.

Aneesh Raman, CNN, Baghdad.

(END VIDEOTAPE)

WHITFIELD: The military unit that briefed President Bush today on pre-election security lost one of its members in a roadside bomb. It happened in the same town where Saddam Hussein allegedly massacred 143 Shiites in 1982, a crime for which he and seven others will go on trial next week.

Also today, insurgents attacked police stations in Baghdad and the northern city of Kirkuk. Two Iraqi police officers were killed.

And now a message apparently from al Qaeda in Iraq concerning a message purportedly from al Qaeda's second in command, Ayman al- Zawahiri. Several Islamist Web sites are denying the authenticity of a long letter, more than 6,000 words, that U.S. officials say they intercepted, analyzed and attributed to al-Zawahiri, Osama bin Laden's top aide.

The letter urges Sunni insurgents to prepare for the eventual pullout of U.S. troops, taking care not to alienate Muslims with violence against civilians. Americans say they remain confident of the letter's authorship. The online denials, on the other hand, cannot be verified.

Well, here in this country, there's a major new development in the controversy over Senate Majority Leader Bill Frist's stock dealings. CNN has confirmed reports that Frist has been subpoenaed by the Securities and Exchange Commission.

CNN Congressional Correspondent Ed Henry joins us now with more on that.

He is cooperating thus far?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right. Good afternoon, Fredricka.

CNN confirming that in fact the subpoena came to Senate Majority Leader Bill Frist over the course of the last two weeks. It's for documents in connection with this investigation of alleged insider trading.

They're focusing in on July's stock sale of HCA. That's, of course, the hospital company founded by Senator Frist's father.

There are allegations out there that Senator Frist had some sort of advance knowledge that there were problems at the company that were going to spark a drop in price. Now, some people have said it was a sharp drop. In fact, it was only about a 9 percent drop in the stock price. But, in fact, Senator Frist did sell it before that drop, regardless of how big it was. And basically, investigators at the Securities and Exchange Commission now issuing the subpoena.

Separately, the U.S. Justice Department is also investigating this in a criminal way. No subpoena from the Justice Department yet.

Now, Senator Frist's office putting out a statement saying, as you mentioned, they are fully cooperating with this investigation. They feel that they have nothing to hide, and that, in fact, Senator Frist will be exonerated, saying when he sold the stock "his only objective in selling the stock was to eliminate the appearance of a conflict of interest. He had no information about HCA or its financial performance that was not publicly available when he directed his trustees to sell the stock."

There, again, you're seeing basically his advisers saying that they were trying to remove any appearance of a conflict of interest, but, of course, now, with all of these investigations, it's actually blown up into a bigger deal, certainly than they expected. I can tell you, Democrats crowing about this. They believe that there was a conflict of interest for years and Senator Frist refused to sell the stock.

Senator Frist's office points out that he voluntarily put this into a blind trust to try to deal with that in recent years. Again, he now sells it in July, this sparks these investigations. A lot of people in Washington speculating this is going to put a major damper, obviously, on Senator Frist's presidential chances.

Advisers to Senator Frist point out, better to deal with this in 2005 than 2007, 2008. Still, a long way away -- Fredricka.

WHITFIELD: And Ed, aside from the outcome of this investigation, certainly this does underscore thoughts about double standards. Or, we're talking about whether, indeed, Senator Frist's points of view are making legislation as it applies to the health industry was in any way influenced by his connection with HCA, for example.

HENRY: And, in fact, his office will vehemently deny that it was ever affected by that because they feel it was on the table, it was fully disclosed that he had health care stock. And they say that he is basically somebody who has used his credentials as doctor over the years very publicly.

But, in fact, his critics, as you suggest, will note that now that perhaps that quality that he had as a doctor beyond a politician has been tarnished by this a bit. We'll have to see the political ramifications. But you're right, certainly not the kind of issue that Senator Frist was hoping to be dealing with right now -- Fredricka.

WHITFIELD: All right. Ed Henry in Washington. Thanks so much.

Also in Washington, CIA Director Porter Goss is getting some extra work. The Bush administration says from now on Goss will be in charge of all human intelligence gathering, not just inside the CIA, but also inside the other 14 U.S. intelligence agencies. Observers say the move will restore some of the status the CIA lost when John Negroponte was appointed over Goss as director of national intelligence.

Overseas, a chaotic and bloody day in southwestern Russia. Armed militants launched attacks on police stations and government buildings in the city of Nalchik. Conflicting reports say dozens of police and civilians and even more militants have been killed. Nalchik is not far from Chechnya, or Beslan, the site of last year's horrific school massacre.

CNN's Ryan Chilcote has the latest.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice over): The rebels attacked in the morning. At least 80 pro-Chechen militants simultaneously opening fire on police stations, a prison, a gun shop, even the airport in the southern Russian city of Nalchik.

As the normally quiet city was enveloped in the sound of gunfire, mayhem. Corpses could be seen throughout the city, dozens were wounded, sometimes just children, bystanders. Elementary schools were evacuated, parents grabbing their children and making a run for it.

Thursday's fighting took place near the town of Beslan, where a year ago a group of terrorists took more than a thousand hostages at a school, and hundreds were killed in the fighting that ended it. This time, the Russian president ordered the city sealed off and all those who resist arrest be shot. But dozens of civilians, government troops and rebels are already believed to have been killed in the fighting.

A Russian official blamed the attack on a group of Islamic extremists seeking to distract Russian forces from an ongoing military operation. Meanwhile, a Web site often used by Chechen rebels who have been battling the Russian military for more than a decade said the attack was part of a planned military operation against Russian forces.

(END VIDEOTAPE)

WHITFIELD: And Ryan Chilcote is with me now here in Atlanta.

Often we see you overseas, of course. Good to see you in person.

What is the latest on this investigation, or how did they kind of put the pieces together of what happened?

CHILCOTE: Russian officials right now saying that it's now nighttime there, saying that fighting, for the most part, has subsided in the city. But there are still two pockets of resistance, saying that there are militants basically holed up in two different locations.

At one police station they say there are still seven militants. And they say there are several militants holed up in a store. So they're still fighting there.

WHITFIELD: What's the significance of these targeted locations? You mentioned there were police stations among those locations targeted.

CHILCOTE: Well, this is classic, basically, pro-Chechen rebel activity. We've seen a very similar attack in June of last year when pro-Chechen rebels went after police stations, prisons, every -- all of the objects of Russian power that they hold responsible for what is taking place in Chechnya. So this was the exact same kind of approach. It points directly to pro-Chechen rebels operating both inside of Chechnya but, increasingly, of course, outside of Chechnya in attacks like we saw in Beslan last year.

WHITFIELD: And speaking of which, that anniversary, one-year anniversary very recently...

CHILCOTE: That's right.

WHITFIELD: ... just a few weeks ago. Might there be any kind of connection to today being the day in which this attack took place in relation to the anniversary of Beslan?

CHILCOTE: Well, connection simply in the geographic location. This is taking place in southern Russia, just outside of Russia. Increasingly, we're seeing these attacks taking place not inside of the Russian region of Chechnya, but outside of it.

What's different from this, from what took place in Beslan, of course, is this seemed to involve less civilians. This was not a hostage-taking of civilians like we had tragic hostage-taking in Beslan, where more than a thousand hostages were taken and more than 330 of them were killed, more than half of those children.

WHITFIELD: Children.

CHILCOTE: This time, the rebels went after government institutions. They went after the police stations, the prisons.

WHITFIELD: Well coordinated.

CHILCOTE: Well coordinated, obviously planned in advance. The Russian government says maybe they had to move it up because of another military operation that was going on. They wanted to distract them from that. But this was well planned.

This is the Chechen rebels way of saying, hey, we're still out here, President Putin. We're still a force and a problem that you're going to have to deal with.

WHITFIELD: All right. Ryan Chilcote, thanks so much. Always good work.

CHILCOTE: A pleasure. Thank you.

WHITFIELD: Great to see you.

Well, flood warnings and evacuations in the northeast of this country, and it's expected to get worse. Details straight ahead.

Also coming up, bird flu fears in Europe? Discovery of a deadly strain in a flock of turkeys. As health officials worried about its spread.

(COMMERCIAL BREAK) WHITFIELD: The weekend earthquake in South Asia has left nearly 2.5 million people homeless in Pakistan, according to the country's president. General Pervez Musharraf says delivery aid to those who have lost everything is his country's top priority.

Meantime, 40,000 government troops are moving into areas hit hard by the quake. And international aid for quake victims has climbed to $360 million. President Musharraf says at least 23,000 people died in the disaster.

People in the already saturated northeast of this country face a new round of heavy rains today, raising the chance of more flooding across the region.

CNN's Brian Todd has more on the storms that have already flooded streets, knocked out power and washed away homes.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice over): National Weather Service officials say they haven't seen a one-two punch like this in the northeastern U.S. in a long time. Two huge storm systems, last weekend and now in mid-week that have dumped at least four inches of rain on most of the region from northern New Jersey to southwestern New Hampshire, with some places getting up to a foot.

RON HORWOOD, NATIONAL WEATHER SERVICE: The flooding was extreme in portions of southwestern New Hampshire and bad as well on the border of Massachusetts and New York State and the Berkshires, also southern Vermont, where we had small streams and creeks experience major flash flooding during the past weekend. And that encompassed everything from road closures to actually bridges being washed out.

TODD: New Hampshire emergency management officials say all the major roads in the southwestern portion of that state sustained some damage. One small town in that area was especially hard hit.

UNIDENTIFIED FEMALE: This was the entrance to our front porch, which was all glassed in. And then our house ran to the right of it.

TODD: Marlene Wade (ph) talks about the house in Alstead, New Hampshire, that she's lived in for nearly 50 years. Much of it swept away in the floodwaters running over from the Cold River. Some houses in Alstead were washed as far as two and a half miles down stream from their foundations.

In northern Massachusetts, the swollen Green River destroyed a trailer park, leaving many people homeless. In Hackensack, New Jersey, motorists try a maneuver that weather service officials say is especially dangerous. They tell CNN most of the fatalities from these storms occurred when people tried to drive down flooded roads.

And weather service officials say the region is not getting a break. They say most of the area will continue to get moderate to heavy rainfall until at least Sunday.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: And CNN meteorologist Dave Hennen is with me now with more on this very serious situation across the northeast -- Dave.

(WEATHER REPORT)

WHITFIELD: A controversial call at the plate during the American League championship game. Did this ball right there, did it hit the dirt before the glove? And should Major League Baseball use instant replay? We're rounding the bases on that one, coming up.

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. Coming up, while Google might soon be increasing its presence on the Internet.

I'll have that story and a check on the markets next on LIVE FROM. So stay with us.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

WHITFIELD: Charges, rumors and speculation continue to swirl through the Middle East following the death of Syrian interior minister Ghazi Kanaan. The Syrian government says he committed suicide, but some say there's more to the story.

CNN senior international correspondent Brent Sadler has a report.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): He was thought invincible. General Ghazi Kanaan, once wielding immense power over Lebanon as Syria's intelligence chief for two decades. An Alawite general belonging to the same Shiite Muslim sect that holds power in Damascus through Syria's long-ruling Assad family.

In the United States, he was listed as a supporter of terror, his assets frozen, the Syrian interior minister, when a bullet took his life. Brought to this Damascus hospital with the fatal wound, the apparent victim of his own hand.

(on camera): The authorities here were quick to officially confirm a top ministerial suicide. Syria's long-serving security supremo died, say doctors, from a single gunshot to the head.

(voice-over): But it's events leading up to Kanaan's startling death that draw most attention. The announcement came about an hour after he gave an emotional statement to a Lebanese radio station, rejecting unsubstantiated allegations made by a Lebanese TV channel that Kanaan was mixed up in a multi-million dollar political corruption scandal. It's allegations of corruption and political gerrymandering in Lebanon that caught the attention of a United Nations team probing the February assassination of former Lebanese Prime Minister Rafik Hariri. Kanaan was questioned by the investigators just three weeks ago. The U.N.'s findings will be released soon, Syria bracing for possible repercussions.

Syria's president was speaking exclusively to CNN during the last moments of Kanaan's life, adamantly denying Syrian complicity in the Hariri murder.

CHRISTIANE AMANPOUR, CNN CHIEF INT'L CORRESPONDENT: Would you have ordered such an assassination?

PRES. BASHAR AL-ASSAD, SYRIA: This is against our principle and my principle, and I would never do such a thing in my life.

SADLER: The timing and manner of Kanaan's death serve to deepen the Hariri murder mystery, say observers here, and will intensify the spotlight on an embattled Syrian leadership.

JOSHUA LANDIS, AUTHOR, SYRIACOMMENT.COM: This is going to be spun in 100 different ways. But, basically, the Syrian regime for the last 35 years has been extremely cohesive.

SADLER: And, insist President Assad, a ruling system that will remain steadfast despite unrelenting outside pressure.

Brent Sadler, CNN, Damascus.

(END VIDEOTAPE)

WHITFIELD: Despite President Assad's denials, many Lebanese still blame Syria for the assassination of Rafik Hariri, Lebanon's former prime minister. There's even skepticism about Syria's claim that Kanaan took his own life.

Joining us from Washington is the Syrian ambassador to the United States, Imad Moustapha. Good to see you, Mr. Ambassador. Ghazi Kanaan, as we learned in that proceeding piece, was very powerful, not just in Syria, but as well, in Lebanon. What kind of pressure might he have been under in order to allegedly commit suicide?

IMAD MOUSTAPHA, SYRIAN AMBASSADOR TO U.S.: It's very, very difficult to judge from here from Washington. I don't want to do like others do, like sitting comfortably in their armseats and saying, well, he did this and he didn't do that.

But what I can tell you is the following. The late General Ghazi Kanaan spent most of his career life working in Lebanon and for Lebanon and towards strengthening the relations between Syria and Lebanon. I think he's been in the last year considerably disappointed for the state of the affairs between Syria and Lebanon, and he was particularly hurt by the fact that the Lebanese are accusing Syria of having anything to do with the assassination of Hariri. It is so telling, so telling, that his very last statement before committing suicide was that he asked the Lebanese media to stop leveling these accusations against Syria and against himself. But most extraordinarily, he even defended General Hariri himself in his very last statement. And then, his very last word was, this will be my last statement -- the last statement I will ever...

WHITFIELD: That being said on the radio during a conversation.

MOUSTAPHA: Yes, he said it and he immediately committed suicide after it.

WHITFIELD: And you are convinced, as well, that he did, indeed, commit suicide. Syrian police say they have conducted an exhaustive probe and they are, indeed, convinced that he used his own favorite gun, which happened to be a U.S. Smith and Wesson, reportedly -- used his own gun, pulled the trigger, killed himself.

MOUSTAPHA: This is what the medical examiner in Syria confirmed, also (INAUDIBLE) police report. And I can't say anything more than he almost, he almost told the whole world that this would be his very last sentence. And he said this to the voice of Lebanon, a Lebanese radio station.

WHITFIELD: And Mr. Ambassador, there is an awful lot of skepticism from other groups; in particular, opposition group leaders here in the U.S. have said that they believe that perhaps there may have been an assassination.

And this also coming -- this reported or apparent suicide coming on the heels of a very tough interrogation by U.N. investigators who are looking into the death of Rafik Hariri. Would there be any connection, in your view? The timing of his death and it following this very tough interrogation by the U.N.?

MOUSTAPHA: Let's separate issues, because you have put two issues here. First, let me assure you that there are no political opposition leaders from Syria here in the United States. Those figures who are here in the United States are just con artists who are vetting the U.S. administration from their money, claiming that they are opposition leaders. We do have opposition leaders. I respect them a lot. I might disagree with them. But they live in Syria and working in Syria for their beliefs and what they believe in.

Now, let separate issues and come back to the other issue. It's very difficult to tell what were the true motives behind the suicide of Ghazi Kanaan. President Assad has said yesterday to CNN as explicitly as possible, that Syria has never had anything to do with this heinous crime that really damaged Syria more than anybody else. But, most importantly, he also said that if any Syrian is proven to be related to this terrible, terrible crime, then Syria would like to see him punished, whether by international tribunal or...

WHITFIELD: And a Syrian president said that in the CNN interview that took place shortly before this reported death of Kanaan. So, was the timing of that, in any way, in your view, suspicious? MOUSTAPHA: I'm in no place to speculate. The correlation cannot be proven that the man is dead now. And we really do not know what has happened. The only thing we know is he made this statement to Radio Lebanon and he said almost a farewell to the world, and he committed suicide.

WHITFIELD: All right. Ambassador Imad Moustapha, thank you so much. Ambassador to -- Syrian ambassador to the U.S. Thank you for joining us.

MOUSTAPHA: Thank you very much.

WHITFIELD: Flu detective. Meet the scientist who has been on the trail of a terrifying disease. Could it strike again?

And casino dreams and debate. While some think the success of New Orleans depends on the number of its slot machines. We'll explain, straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

WHITFIELD: A deadly strain of bird flu has turned up on Europe's doorstep. The European commission says the H5-N1 strain has been found in Turkish poultry and is likely present in Romania as well.

If H5N1 is confirmed in Romania, it would be the first time that strain has shown up in Europe. Doctors are afraid the strain could develop into a strain that endangers humans.

Scientists say the H5N1 bird flu strain is similar to the strain that caused a catastrophic global epidemic in 1918. Researchers are studying the 1918 virus in hopes of developing a vaccine to prevent a new epidemic.

If a vaccine is developed, much of the credit will go to a scientist who began his work more than a half century ago. CNN's Thelma Gutierrez has his story.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): In this cabin in the foothills of northern California lives a retired scientist. For 50 years, Dr. Johan Hultin has been on the trail of one of the deadliest killers known to man.

HULTIN: It's on its way, by the way. It's on its way.

GUTIERREZ: The Spanish influenza of 1918 killed some 100 million people around the globe.

HULTIN: It's terrible. Suffocating and rapidly, within hours.

GUTIERREZ: As a young medical student, Hultin decided to search for the virus in the Arctic, where entire villages perished and were buried in mass graves beneath the permafrost.

So, Hultin headed for Alaska, seeking permission from tribal elders.

HULTIN: I got permission to open that mass grave. There were 72 buried.

GUTIERREZ: Ninety percent of the village, wiped out all those years ago. Hultin collected samples and tried to reproduce the virus.

HULTIN: I failed -- terribly disappointing. I failed.

GUTIERREZ: Fast forward 46 years. Johan Hultin had retired from a distinguished career as a pathologist. Still, the mystery of the Spanish flu nagged at him until he came upon Dr. Taubenberger in Washington, who's genetically profiling the virus.

HULTIN: My only question was: if I went back and got a good sample, would he take the sample?

GUTIERREZ: So, on the eve of his 73rd birthday, Dr. Hultin headed back to Alaska, back to the mass grave he had opened 50 years earlier and back to another meeting with the village elder.

HULTIN: She remembered me. She was six years old when I was there in '51 and she remembered me. That's what made a difference. And then, I came across a young woman about 30 who had been obese in life.

GUTIERREZ: The woman's weight had prevented her diseased lungs from decaying. Hultin sent off the carefully preserved lungs to Dr. Taubenberger.

HULTIN: Ten days after he had received my specimens in Washington, he called me and he said, "Johan, we have the 1918 --"

I'm sorry. And it was a great moment for me.

GUTIERREZ: The genetic code of the Spanish influenza now hangs on Hultin's wall.

(on camera): And all of this information possible because of this work?

HULTIN: Yes.

GUTIERREZ (voice-over): Hultin, at age 81, says the race now is for an effective vaccine. If it's found, it may be because of an anonymous young Inuit woman and a scientific detective who just wouldn't quit.

Thelma Gutierrez, CNN, Bear Valley, California.

(END VIDEOTAPE)

WHITFIELD: Still ahead on LIVE FROM: Three strikes and you're out, or maybe not. The controversial call has Los Angeles Angels fans crying foul.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: And I'm Sibila Vargas in Hollywood.

You won't see any new episodes of "The Simple Life" on Fox Network any more. And ready to find out who the next 007 bond man will be? I'll have those stories and more on The Hollywood Scoop.

(COMMERCIAL BREAK)

VARGAS: I'm Sibila Vargas in Hollywood.

Some scary moments for actor Josh Holloway and his wife. The two were reportedly robbed at gunpoint in their home in Honolulu. The two were apparently in bed when the prowler rousted the couple and took some cash, credit cards and then drove away with Holloway's Mercedes- Benz.

Josh Holloway plays con man, Sawyer, on ABC's megahit, "Lost." And, according to reports, it did not appear that the robber recognized the actor. The show is shot in Hawaii.

Well, it seems Paris and Nicole's 15 minutes of fame might finally be over, at least on Fox. The network has canceled plans to air the fourth season of "The Simple Life."

Paris Hilton and Nicole Richie's friendship has reportedly been on the rocks, which caused some people to wonder how the show would go on. But all you "Simple Life" fans out there, don't fret.

The studio that actually produces the show, 20th century Fox, is hopeful that the show will find a new home on another network.

Actor Anthony Anderson is looking to put a little hustle and flow into his Domino game. The actor, mother, actor Makai Phifer and a few other celebs have signed up to play in the Professional Domino Association in L.A.

PDA was created to give players a forum to display their skills. First prize winner gets 5,000 bucks.

Well, it's just a matter of time. In less than 24 hours, we'll know the man who will be uttering those famous words: "My name is Bond, James Bond."

Sony Pictures will be ending months of speculation, revealing the name of a new 007 at a press conference in London. Now, of course, it's been rumored that British actor Daniel Craig will be playing the spy.

According to British reports, the 37-year-old beat out a whole list of contenders that included Clive Owen, Colin Firth, and Colin Farrell.

Casino Royale, which is the 21st Bond film, is scheduled to be released next year.

And that's a look at the world of entertainment. More LIVE FROM after the break. (COMMERCIAL BREAK)

WHITFIELD: Well, six weeks after Hurricane Katrina, wheels are beginning to turn in New Orleans. No, not the wheels of heavy industry -- more like roulette wheels and slot machines.

A few of the city's riverboat casinos have reopened their doors. Some officials are looking to more casinos as a way to economic recovery, but others aren't so sure. Our John King reports.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Back in business at the Treasure Chest casino, the slots spinning an occasional jackpot, gambling making its post post-hurricane turn the Big Easy and drawing a bustling crowd to the river boats.

UNIDENTIFIED MALE: Everybody is smiling, all of the employees and all of the customers. It's like the semblance of life is back.

KING: It is this buzz of activity and all the money changing hands that Mayor Ray Nagin had in mind in proposing a major expansion of legalized gambling in New Orleans.

MAYOR RAY NAGIN, NEW ORLEANS: We have an incredible opportunity right now.

KING: Little support, though, from Governor Kathleen Blanco who says gambling won't be on the agenda for the special legislative session scheduled next month to address hurricane recovery needs.

The governor sides with those who worry predictions of the financial windfall for more casinos are overly optimistic and who believe too much emphasis on the glitz of gambling could damage both the city's broader economic base and its unique character.

JULIE QUINN, LOUISIANA STATE SENATE: What's indigenous to Louisiana is Cajun, good food, good music, tourists, Bourbon Street, our port, our oil and gas, our hospitality, our way of life.

KING: Eleven states allow casino gambling, with Nevada the runaway leader in casino revenues, more than $10.5 billion last year. Mississippi ranked third at nearly $3 billion, and Louisiana fifth, its casinos generating $2.2 billion in revenue.

The city's only land-based casino, Harrah's, remains shuttered six weeks after the storm. The mayor wants more casinos like this one downtown, initially by allowing hotels with more than 500 rooms to add gambling space.

TIM RYAN, CHANCELLOR, UNIV. OF NEW ORLEANS: The one impact of this is it gets money in quickly.

KING: University of New Orleans Chancellor Tim Ryan is an economist whose 1998 study for the state concluded gambling's benefits outweighed the costs. He still believes that, but predicts the margins could be smaller now because of competition, especially from neighboring Mississippi.

RYAN: Mississippi, as a result of the storm, has legalized land- based casino gambling. And the Mississippi Gulf coast is only 60, 70 miles away.

KING: That competition is one reason why supporters of more gambling in New Orleans want faster action. But so far, the odds favor those who oppose betting on casinos to drive the city's recovery. John King, CNN, New Orleans.

(END VIDEOTAPE)

WHITFIELD: Some credit card companies are offering yet another reward, no fees for late payments. But before you get too excited, there could be a catch. Susan Lisovicz has more, live from the New York Stock Exchange. Susan, there's always a catch, isn't there if it sounds like a good deal?

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WHITFIELD: Teenage golf prodigy Michelle Wie makes her professional debut just a few moments from now, actually. She's scheduled to tee off at the top of the hour at the LPGA tournament in Palm Desert, California. Wie turned 16 -- sweet 16 -- on Tuesday. She has already signed endorsement deals worth up to $10 million a year, and her talent has drawn comparisons to a young Tiger Woods. Go, Wie.

The Los Angeles Angels and Chicago White Sox are tied at one game apiece in their battle for the American League pennant, but fans will be talking about last night's game forever and its controversial ending for a very long time. CNN's Larry Smith is here. Oh, my gosh, baseball fanatics going crazy over this.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Yes, everyone is asking me, what did you think? What did you think? What do you think? And I'm like, well, I think it was pretty obvious, look at the replay. Unfortunately, in baseball, you don't have replay to go to.

But unlike the crosstown Cubs a couple of years ago, the White Sox got a break during a playoff game. Now, this is the most infamous umpire call, or miscall, that we have seen in 20 years, back to '85. Home plate umpire, Doug Eddings, last night called strike three -- he does this -- and called A.J. Pierzynski out like this and yet Pierzynski was allowed to take first base and continue the game.

Now, several replays to show you. On this first one, watch Eddings. He's in black behind home plate. Let's go to U.S. Cellular field. This game was heading into extra innings, game two of the American League Championship Series, tied at one.

There's a swing, there's strike three, there's the out and yet, Pierzynski, if the ball is not caught on strike three the runner can advance. You have to throw an out at first base. The replays, it appears that catcher, Josh Paul, did make the catch or did he?

Now, Paul could have avoided all of this by simply tagging Pierzynski and ending all the controversy. Mike Scioscia, by the way, could have gone to the third-base umpire for an appeal. He did not. A pinch runner comes on, steals second base and then Joe Crede with the game winning double. Just like that, the White Sox tied the series at one apiece. And Mike Scioscia, by the way, not very happy after the game.

(BEGIN VIDEO CLIP)

MIKE SCIOSCIA, ANGELA MANAGER: When the umpire calls a guy out and you're the catcher and I've caught my share of them, he's out. He didn't call swing, he wrung him up with his fists and said, you're out.

UNIDENTIFIED MALE: This is a game about inches. And we take advantage, and the two inches helped us today. I think I always say I'd rather be lucky and be good.

(END VIDEO CLIP)

SMITH: Both those managers, by the way, former baseball players. And as you can imagine, Angels' manager not happy, White Sox manager he will take that.

WHITFIELD: Happy.

SMITH: By the way, no real fallout. The game is over, they move on. Off day today, they have game three tomorrow night in Anaheim. However, the Angels today, no media availability, they did not call a media session, as most of the teams do, to talk about the game. So ...

WHITFIELD: Interesting. So I wonder, this is not the end. I imagine this is the beginning of perhaps talk about the whole instant replay. Would it be something they want to institute?

SMITH: Well, you know what? Not in baseball. I mean, so many times it's happened before. I mean, it will be something to talk about. And if the Angels lose the series, they'll point to this game. If they win, just a footnote in history.

WHITFIELD: All right, Larry. Thanks so much.

SMITH: OK.

WHITFIELD: Well, that's going to do it for this hour of LIVE FROM. I'm Fredricka Whitfield at the CNN Center in Atlanta.

Now to Kyra Phillips, in for Wolf Blitzer, live in THE SITUATION ROOM.

KYRA PHILLIPS, CNN ANCHOR: I'm Kyra Phillips, and you're in THE SITUATION ROOM, where news pictures and information are arriving all the time. Standing by, CNN reporters across the U.S. and around the world to bring you the day's top stories.

Happening right now, it's 3:00 p.m. in the Northeastern United States. Plagued by days of rain and deadly flooding with no let up in sight, thousands of people bracing for the worst.

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