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CNN Live Today

Anxious Palestinian Leaders in Urgent Meetings

Aired November 05, 2004 - 10:31   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.


RICK SANCHEZ, CNN ANCHOR: It is 31 minutes after the hour. I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan. Good morning once again. Let's take a look at what's happening now in the news.

U.S. law enforcement officials say that heightened terror fears surrounding the presidential elections led to more than 700 arrests since last year. They can't say for sure that they foiled any planned terror attacks. Since last year, more than 700 people have been arrested on immigration violations. Thousands were questioned by the FBI.

Another mixed signal on the economy this morning. First, the government says last month saw the sharpest job growth in seven months. A construction surge in areas hard-hit by the hurricanes helped fuel last month's creation of 337,000 jobs. However, the unemployment rate also edged up by 0.1 percent. In about 15 minutes, our senior business correspondent, Rhonda Schaffler, will help break down those numbers.

We're keeping a close eye this morning on Falluja, as U.S. and Iraqi forces gear up for an offensive on the insurgent stronghold. U.S. Marines issued a statement today, listing a series of strikes on the city there as the coalition steps up its movement on militant and terrorist networks.

Palestinian militants say the death of Yasser Arafat would have no impact on their Islamic war against Israel. Leaders of Hamas and the Islamic Jihad agreed on the pledge during a meeting in Gaza. Sources say they also agree to work together to prevent chaos in Palestinian areas in the event of Arafat's death.

SANCHEZ: Let's stay with the story of Arafat, if we could. He is still clinging to life inside a French hospital, so say sources there. U.S. officials say Arafat is reported to be in a coma. His condition is described as very serious. Anxious Palestinian leaders have been in urgent meetings over the transfer of authority and the potential for violence in the event of Arafat's death.

CNN's John Vause is joining us now from Ramallah on the West Bank with the very latest reaction there.

John, over to you.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Rick. Well, the Palestinian militant groups, the rival factions met in Gaza a few hours ago, agreeing to a show of unity and also to maintain law and order. But also at that meeting, the militant groups Hamas and Islamic Jihad have agreed that their "military struggle," in their words, against Israel will continue whether Yasser Arafat lives or dies.

Now reigning in the militant groups will be one of the biggest challenges confronting whoever it is who replaces Yasser Arafat. Israel has made it a precondition of peace negotiations that the terrorist organization within the West Bank and Gaza be dismantled.

In the past, Israel has accused Arafat of refusing the crack down on militant groups like Hamas and Islamic Jihad, even saying that Arafat encouraged their terrorist activities and attacks on Israelis. It is a charge which Arafat has always denied.

Of course there's a lot of speculation now about who will take over from Yasser Arafat. Right now, his responsibilities have been pretty much split between the current prime minister, Ahmed Qorei, and the former prime minister, Mahmoud Abbas, who is also the No. 2 man of the PLO. But there are predictions that whoever it is that takes over, or whatever form of committee of whatever group of people takes over, they will not be forgiven for the same amount of cronyism and corruption, which was the hallmark of Arafat's leadership -- Rick.

SANCHEZ: John Vause, we thank you so much for that report. We will be checking back with you.

Meanwhile, crowds already gathering in Gaza, awaiting more on Arafat's condition. Hundreds are marching the streets, carrying portraits of Arafat. They're waving Palestinian flags, and as it's described to us, simply keeping vigil.

Here are some of the other stories that we're following on this day coast to coast.

KAGAN: A military investigation is under way in little Egg Harbor (ph), New Jersey after an F-16 fires 25 rounds into and around a school. There were no injuries, but also no explanation as to why the Air National Guard pilot opened fire some 3 1/2 miles away from the firing range.

SANCHEZ: Does seem bizarre.

Searchers on Oregon's Mt. Hood have located two climbers after a 911 for a rescue. One climber died in a fall into the crevice. His 37-year-old companions survived and was airlifted to a hospital. He was treated for a broken arm and for broken ribs.

Santa bringing gifts. How about this man's entry by chimney, bringing charges. Police in Portland, Oregon arresting the 18-year- old when a homeowner found him lodged in a chimney. He suffered some scratches in his adventure, and the scrape with the law also left him charged with burglary. SANCHEZ: And this, a dream takes root, and then branches out, atop this tree in Burlington, Vermont. The city joined efforts with local volunteers and a private charity to provide this build this handicap-accessible treehouse. There it is. It's the eighth structure by Forever Young Treehouses, which is hoping to build one in each of the 50 states within the next four years. Looks like fun.

KAGAN: Looks like fun.

Some people might think it is fun to own their own business, maybe not start it, but buy somebody else's.

Gerri Willis is just ahead with tips on how you could do that and what you need to look out for.

SANCHEZ: Stay with us.

(COMMERCIAL BREAK)

SANCHEZ: It's all positive right now as far as the economy is looking, at least in the last couple of days.

KAGAN: It's all good all right. Let's check in with Rhonda Schaffler. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Daryn and Rick, certainly positive when we looks at the jobs picture, as you reported earlier. Many more jobs created in October than had been expected. And that is having a ripple effect throughout the markets today.

Employers hired 337,000 new workers last month, the biggest gain since March and double what the economists were forecasting. The government also revised up the number of jobs created in August and September.

A separate survey showed the employment rate ticked up to 5.5 percent because more people were actually out looking for work. Analysts say the strong employment figures all but assure that the Federal Reserve will raise the key interest rate by another quarter percentage point to two percent when it meets next week.

The report on jobs prompting a major sell-off on the bond market, but stocks are rallying sharply. Once again, the Dow surging 80 points. Nasdaq heading about one percent. And the S&P 500 is up, as well. It is trading at its highest level in two-and-a-half years. The market's been on a roll since President Bush's reelection became clear on Wednesday.

That is the very latest from Wall Street. Daryn, back to you.

KAGAN: All right. Thank you for that.

All right, if you ever thought about kind of getting away from the...

SANCHEZ: Music.

KAGAN: Getting away from the music and starting your own business, being your own boss, no more of these workplace politics -- not like that would happen around here or bureaucratic runarounds.

Before you leap, though, CNN personal finance editor Gerri Willis, you were talking about not just starting your own business, but what if you want to own someone else's? Right? That's what we're focusing....

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Exactly. Hey, you can start your own business, and certainly you can spend all your time trying to grow that little thing to an enterprise, or you can just buy somebody else's business.

Brokers, though, remember, aren't your best friend. You'll be tempted to use a broker if you're buying a business. But remember, they're paid on commission by the seller. So, their incented to get the biggest price and close the deal as quickly as possible. So, if you are going to use one, shop carefully. Make sure you get somebody you really like. And look at the Web site ibba.org.

KAGAN: All right. Moving on with our other tips. You also want to, though, do your due diligence. You want to do your homework.

WILLIS: Do your homework. If you're competing with other people in the marketplace, find out who the competition is, how good their business is. Check them out. And as you're looking at businesses to buy, make sure you don't factor in unreported income. If somebody tells you that there's money they got in the front door they didn't report to Uncle Sam, ignore it.

KAGAN: So, someone says, "I have this business. I have this business I want to sell you. I've got a great deal. I'm going to finance it for you."

WILLIS: Well, I got to tell you, it's a good way to go. You know, you may find a bank might not want to finance your new business, so turn to the seller and borrow the money from them. It's the most common way these deals are done. You'll probably pay a little bit of a higher rate of interest.

KAGAN: How do you know what the business is worth?

WILLIS: It is based on profit. So, how much money that business makes on an annual basis is your first clue to understanding how much you'll pay. Back out your pay, back out the taxes, and then you'll pay a multiple of three to five times that amount to buy the business.

KAGAN: And what about buying into one of these franchises?

WILLIS: This is a real short-cut, I got to tell you. An easy way to do it -- make sure you interview other franchisees before you get into the business. Make sure you understand you're getting enough support in terms of marketing dollars, in terms of information about how the business should operate. Check out a couple of fees that you're going to necessarily be charged -- royalty rates, which is a percentage of your sales, and then the franchise fee, which is the big nut you'll pay to get, you know -- whatever, the McDonald's signs or whatever you're buying in the first place.

It's tricky, but it's a real jump-start on getting your own business.

KAGAN: All right. Gerri Willis, thank you. You have a great weekend.

WILLIS; You, too.

SANCHEZ: You've got to be real liquid to do that, though.

KAGAN: To be able to...

SANCHEZ: To get a franchise.

KAGAN: Yeah...

SANCHEZ: Cash on hand.

KAGAN: Yeah.

SANCHEZ: Well, having trouble settling down with that just perfect person?

KAGAN: Why are you looking over at me?

SANCHEZ: Well, because I know you like this movie.

KAGAN: OK. We're talking movies. OK.

SANCHEZ: So does "Alfie."

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Alfie!

UNIDENTIFIED FEMALE: Alfie!

UNIDENTIFIED FEMALE: Alfie!

JUDE LAW, ACTOR: I'm a blessed man.

(END VIDEO CLIP)

KAGAN: Still to come, Jude Law takes to the big screen with a blast from the past.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SPENCER FOX, ACTOR: Whoa!

(END VIDEO CLIP)

SANCHEZ: It's the creative powerhouse behind "Toy Story," and it's back with a new feature film. This one could be good. Could be the best yet, some people are saying -- not the person.

"The Incredibles" is about middle-class suburbanites who happen to be superheroes. Who knew? It opens in theaters today. So does the new remake of "Alfie" starring Jude Law. That's the one Daryn wants to see.

Matinee superhero "Mr. Moviefone," also known as Russ Leatherman, is with us from Los Angeles to tell us about this. Hey, Russ. This is the first chance you and I get to hook up here.

RUSS LEATHERMAN, "MR. MOVIEFONE": Well, happy Friday. And we picked a good weekend to have our first chat, because we do have "The Incredibles" hitting theaters. You're right. It's from the guys at Pixar, who brought us "Toy Story," "Finding Nemo." And this movie is just fantastic. It's incredible, if you will. It's really, I think, maybe the best animated feature of the year, one of the best movies of the year.

He's a washed up, has-been superhero who goes and lives in suburbs for 15 years with his wife and they have some kids and they get fat on the couch and all those things that happen to all of us. But Mr. Incredible he wants back in the superhero game. So, one of his villainous foes sort of resurfaces, and he and the family go after him.

Now, the thing that I really liked about this movie is, one, the animation is spectacular -- as we've come to expect from the guys at Pixar -- but the story is also fantastic. There's a lot of action, a lot of comedy. It's as good for the adults as it is for the kids. So, I would say you can grab the kids, your grandma, Aunt Mabel, take the whole family. In fact, take the neighborhood to go see "The Incredibles." It might be one of the best movies you've seen all year long.

SANCHEZ: The technique with the animation here, they're calling it human animation. Is it different from what we've seen before, or is it different from a movie coming out next week, where it's going to be really bizarre?

Well, it's very different than the movie we're going to see next week, "Polar Express." And the thing with the guys at Pixar is they seem to have figured it out. A lot of the other companies are trying to figure out, do I make the characters more human, more animated. Where does this thing end up? I think these guys hit it right on the money. You're going to watch this movie, you're not going to be distracted by the animation. You're going to think it really helps the story. But the great thing about the movie is the fact that the story is terrific. We're not really focused on the animation; we're focused on these superheroes getting back into the game. So like I said, this is one of the best movies of the year, and I think you're going to really love it.

SANCHEZ: No, listen, I've got four kids. Pixar for me has made going to the movies with my kids fun again. Let me ask you about a movie I probably can't take my kids to "Alfie."

LEATHERMAN: Yes, I wouldn't take the kids, but you might want to grab Daryn over there and take her, because she's going to like this one. The ladies love Jude Law, and I think every man wants to be Jude Law.

KAGAN: Jude Law is no Rick Sanchez, I'm here to tell you.

LEATHERMAN: That's what I'm talking about. But he is something. And he's really terrific in this movie. It's a remake of the 1966 movie with Michael Caine. He's really a womanizing limo driver who goes around and tries to bed every woman he can find, and sort of leaves a path of destruction in his wake. I think this is a really good movie. And here's why, very few people could pull this role off. Jude Law is a very charming guy. You want to hate the guy, but you can't really hate him. Maybe Hugh Grant could have done it. But you know, what, he's a cad, but we somehow end up sympathizing with him and loving him.

So I like this movie. It's not terrific, but it's certainly not as bad as a lot of people are saying, and I think it's worth checking out.

SANCHEZ: Yes, you know what, I could have pulled that off.

LEATHERMAN: I think you could have, Rick, just knowing you in the little time I have, I'm pretty sure.

SANCHEZ: My wife is laughing as we speak, I know it; I can hear her now.

Hey, thanks a lot. Look forward to talking again next week.

LEATHERMAN: Absolutely. Any time. Thanks so much.

SANCHEZ: For more on the movies and all the latest entertainment news, launch your Internet browser, ping to CNN.com/entertainment, and we're back in a flash ourselves in just a bit with the weekend forecast.

(COMMERCIAL BREAK)

KAGAN: Another dream came true on the football field of Gilberts High School in Gilbert, Arizona.

Patty Kirkpatrick has this real life fairy tale from affiliate station KTVK.

(BEGIN VIDEOTAPE)

PATTY KIRKPATRICK, KTVK REPORTER (voice-over): Marisa Robson (ph) and Joe Mclarny (ph) are sweethearts at Gilberts Highland High School.

UNIDENTIFIED FEMALE: I feel happy.

KIRKPATRICK: They are special in more ways than one. The pair were crowned as homecoming king and queen.

QUESTION: How's that make you feel when you got to put the crown on?

UNIDENTIFIED MALE: Happy.

QUESTION: Happy?

KIRKPATRICK: But it was almost not to be. Highland's 2,500 students nominated three boys and three girls as homecoming finalists. Both Marisa and Joe made the final cut. But their parents and teachers wondered if that was really a good thing. What would happen if they didn't win?

UNIDENTIFIED FEMALE: Tried to prepare them for, well, you know, it is just an honor to be nominated.

KIRKPATRICK: Home video catches the special moment.

UNIDENTIFIED MALE: Patrick Houston (ph) and Marisa Robson (ph)

KIRKPATRICK: Marisa wins. But the winner for homecoming king is the kicker on the football team, Patrick Houston.

UNIDENTIFIED MALE: They mentioned my name, then her name. And it's like, I don't know, I kind of looked over at Joe. It's like, I don't know, it's got to go to him.

KIRKPATRICK: So as quickly as last year's homecoming king can crown Patrick, the 17-year-old senior decides to turn over his crown and his cape to Joe.

UNIDENTIFIED MALE: Seeing Joe's face once I gave it to him and shaking his hand, I mean, there's no better feeling, I don't think than that one right there.

KIRKPATRICK: For Highland's students and parents, there's hardly a dry eye in the house.

UNIDENTIFIED FEMALE: It was just -- it was overwhelming. It was amazing.

KIRKPATRICK: For Joe and Marisa, words can't describe the gratitude they feel.

UNIDENTIFIED MALE: I think that Pat's a nice guy.

(END VIDEOTAPE)

KAGAN: Look at the beaming faces. You know, at his homecoming, the kicker who turned over the crown, Patrick Houston, he said his goal today is to become someone's hero. For many, he has already done.

SANCHEZ: He certainly has. That was a nice gesture.

KAGAN: KTVK, my old TV station I used to work at.

SANCHEZ: He's a kicker. If he was a linebacker, he wouldn't have.

KAGAN: Probably not.

Just east of Phoenix, the folks in Gilbert. So congratulations to all of them.

(WEATHER REPORT)

KAGAN: And the second hour of CNN LIVE TODAY begins right now.

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 November 5, 2004 - 10:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: It is 31 minutes after the hour. I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan. Good morning once again. Let's take a look at what's happening now in the news.

U.S. law enforcement officials say that heightened terror fears surrounding the presidential elections led to more than 700 arrests since last year. They can't say for sure that they foiled any planned terror attacks. Since last year, more than 700 people have been arrested on immigration violations. Thousands were questioned by the FBI.

Another mixed signal on the economy this morning. First, the government says last month saw the sharpest job growth in seven months. A construction surge in areas hard-hit by the hurricanes helped fuel last month's creation of 337,000 jobs. However, the unemployment rate also edged up by 0.1 percent. In about 15 minutes, our senior business correspondent, Rhonda Schaffler, will help break down those numbers.

We're keeping a close eye this morning on Falluja, as U.S. and Iraqi forces gear up for an offensive on the insurgent stronghold. U.S. Marines issued a statement today, listing a series of strikes on the city there as the coalition steps up its movement on militant and terrorist networks.

Palestinian militants say the death of Yasser Arafat would have no impact on their Islamic war against Israel. Leaders of Hamas and the Islamic Jihad agreed on the pledge during a meeting in Gaza. Sources say they also agree to work together to prevent chaos in Palestinian areas in the event of Arafat's death.

SANCHEZ: Let's stay with the story of Arafat, if we could. He is still clinging to life inside a French hospital, so say sources there. U.S. officials say Arafat is reported to be in a coma. His condition is described as very serious. Anxious Palestinian leaders have been in urgent meetings over the transfer of authority and the potential for violence in the event of Arafat's death.

CNN's John Vause is joining us now from Ramallah on the West Bank with the very latest reaction there.

John, over to you.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Rick. Well, the Palestinian militant groups, the rival factions met in Gaza a few hours ago, agreeing to a show of unity and also to maintain law and order. But also at that meeting, the militant groups Hamas and Islamic Jihad have agreed that their "military struggle," in their words, against Israel will continue whether Yasser Arafat lives or dies.

Now reigning in the militant groups will be one of the biggest challenges confronting whoever it is who replaces Yasser Arafat. Israel has made it a precondition of peace negotiations that the terrorist organization within the West Bank and Gaza be dismantled.

In the past, Israel has accused Arafat of refusing the crack down on militant groups like Hamas and Islamic Jihad, even saying that Arafat encouraged their terrorist activities and attacks on Israelis. It is a charge which Arafat has always denied.

Of course there's a lot of speculation now about who will take over from Yasser Arafat. Right now, his responsibilities have been pretty much split between the current prime minister, Ahmed Qorei, and the former prime minister, Mahmoud Abbas, who is also the No. 2 man of the PLO. But there are predictions that whoever it is that takes over, or whatever form of committee of whatever group of people takes over, they will not be forgiven for the same amount of cronyism and corruption, which was the hallmark of Arafat's leadership -- Rick.

SANCHEZ: John Vause, we thank you so much for that report. We will be checking back with you.

Meanwhile, crowds already gathering in Gaza, awaiting more on Arafat's condition. Hundreds are marching the streets, carrying portraits of Arafat. They're waving Palestinian flags, and as it's described to us, simply keeping vigil.

Here are some of the other stories that we're following on this day coast to coast.

KAGAN: A military investigation is under way in little Egg Harbor (ph), New Jersey after an F-16 fires 25 rounds into and around a school. There were no injuries, but also no explanation as to why the Air National Guard pilot opened fire some 3 1/2 miles away from the firing range.

SANCHEZ: Does seem bizarre.

Searchers on Oregon's Mt. Hood have located two climbers after a 911 for a rescue. One climber died in a fall into the crevice. His 37-year-old companions survived and was airlifted to a hospital. He was treated for a broken arm and for broken ribs.

Santa bringing gifts. How about this man's entry by chimney, bringing charges. Police in Portland, Oregon arresting the 18-year- old when a homeowner found him lodged in a chimney. He suffered some scratches in his adventure, and the scrape with the law also left him charged with burglary. SANCHEZ: And this, a dream takes root, and then branches out, atop this tree in Burlington, Vermont. The city joined efforts with local volunteers and a private charity to provide this build this handicap-accessible treehouse. There it is. It's the eighth structure by Forever Young Treehouses, which is hoping to build one in each of the 50 states within the next four years. Looks like fun.

KAGAN: Looks like fun.

Some people might think it is fun to own their own business, maybe not start it, but buy somebody else's.

Gerri Willis is just ahead with tips on how you could do that and what you need to look out for.

SANCHEZ: Stay with us.

(COMMERCIAL BREAK)

SANCHEZ: It's all positive right now as far as the economy is looking, at least in the last couple of days.

KAGAN: It's all good all right. Let's check in with Rhonda Schaffler. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Daryn and Rick, certainly positive when we looks at the jobs picture, as you reported earlier. Many more jobs created in October than had been expected. And that is having a ripple effect throughout the markets today.

Employers hired 337,000 new workers last month, the biggest gain since March and double what the economists were forecasting. The government also revised up the number of jobs created in August and September.

A separate survey showed the employment rate ticked up to 5.5 percent because more people were actually out looking for work. Analysts say the strong employment figures all but assure that the Federal Reserve will raise the key interest rate by another quarter percentage point to two percent when it meets next week.

The report on jobs prompting a major sell-off on the bond market, but stocks are rallying sharply. Once again, the Dow surging 80 points. Nasdaq heading about one percent. And the S&P 500 is up, as well. It is trading at its highest level in two-and-a-half years. The market's been on a roll since President Bush's reelection became clear on Wednesday.

That is the very latest from Wall Street. Daryn, back to you.

KAGAN: All right. Thank you for that.

All right, if you ever thought about kind of getting away from the...

SANCHEZ: Music.

KAGAN: Getting away from the music and starting your own business, being your own boss, no more of these workplace politics -- not like that would happen around here or bureaucratic runarounds.

Before you leap, though, CNN personal finance editor Gerri Willis, you were talking about not just starting your own business, but what if you want to own someone else's? Right? That's what we're focusing....

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Exactly. Hey, you can start your own business, and certainly you can spend all your time trying to grow that little thing to an enterprise, or you can just buy somebody else's business.

Brokers, though, remember, aren't your best friend. You'll be tempted to use a broker if you're buying a business. But remember, they're paid on commission by the seller. So, their incented to get the biggest price and close the deal as quickly as possible. So, if you are going to use one, shop carefully. Make sure you get somebody you really like. And look at the Web site ibba.org.

KAGAN: All right. Moving on with our other tips. You also want to, though, do your due diligence. You want to do your homework.

WILLIS: Do your homework. If you're competing with other people in the marketplace, find out who the competition is, how good their business is. Check them out. And as you're looking at businesses to buy, make sure you don't factor in unreported income. If somebody tells you that there's money they got in the front door they didn't report to Uncle Sam, ignore it.

KAGAN: So, someone says, "I have this business. I have this business I want to sell you. I've got a great deal. I'm going to finance it for you."

WILLIS: Well, I got to tell you, it's a good way to go. You know, you may find a bank might not want to finance your new business, so turn to the seller and borrow the money from them. It's the most common way these deals are done. You'll probably pay a little bit of a higher rate of interest.

KAGAN: How do you know what the business is worth?

WILLIS: It is based on profit. So, how much money that business makes on an annual basis is your first clue to understanding how much you'll pay. Back out your pay, back out the taxes, and then you'll pay a multiple of three to five times that amount to buy the business.

KAGAN: And what about buying into one of these franchises?

WILLIS: This is a real short-cut, I got to tell you. An easy way to do it -- make sure you interview other franchisees before you get into the business. Make sure you understand you're getting enough support in terms of marketing dollars, in terms of information about how the business should operate. Check out a couple of fees that you're going to necessarily be charged -- royalty rates, which is a percentage of your sales, and then the franchise fee, which is the big nut you'll pay to get, you know -- whatever, the McDonald's signs or whatever you're buying in the first place.

It's tricky, but it's a real jump-start on getting your own business.

KAGAN: All right. Gerri Willis, thank you. You have a great weekend.

WILLIS; You, too.

SANCHEZ: You've got to be real liquid to do that, though.

KAGAN: To be able to...

SANCHEZ: To get a franchise.

KAGAN: Yeah...

SANCHEZ: Cash on hand.

KAGAN: Yeah.

SANCHEZ: Well, having trouble settling down with that just perfect person?

KAGAN: Why are you looking over at me?

SANCHEZ: Well, because I know you like this movie.

KAGAN: OK. We're talking movies. OK.

SANCHEZ: So does "Alfie."

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Alfie!

UNIDENTIFIED FEMALE: Alfie!

UNIDENTIFIED FEMALE: Alfie!

JUDE LAW, ACTOR: I'm a blessed man.

(END VIDEO CLIP)

KAGAN: Still to come, Jude Law takes to the big screen with a blast from the past.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SPENCER FOX, ACTOR: Whoa!

(END VIDEO CLIP)

SANCHEZ: It's the creative powerhouse behind "Toy Story," and it's back with a new feature film. This one could be good. Could be the best yet, some people are saying -- not the person.

"The Incredibles" is about middle-class suburbanites who happen to be superheroes. Who knew? It opens in theaters today. So does the new remake of "Alfie" starring Jude Law. That's the one Daryn wants to see.

Matinee superhero "Mr. Moviefone," also known as Russ Leatherman, is with us from Los Angeles to tell us about this. Hey, Russ. This is the first chance you and I get to hook up here.

RUSS LEATHERMAN, "MR. MOVIEFONE": Well, happy Friday. And we picked a good weekend to have our first chat, because we do have "The Incredibles" hitting theaters. You're right. It's from the guys at Pixar, who brought us "Toy Story," "Finding Nemo." And this movie is just fantastic. It's incredible, if you will. It's really, I think, maybe the best animated feature of the year, one of the best movies of the year.

He's a washed up, has-been superhero who goes and lives in suburbs for 15 years with his wife and they have some kids and they get fat on the couch and all those things that happen to all of us. But Mr. Incredible he wants back in the superhero game. So, one of his villainous foes sort of resurfaces, and he and the family go after him.

Now, the thing that I really liked about this movie is, one, the animation is spectacular -- as we've come to expect from the guys at Pixar -- but the story is also fantastic. There's a lot of action, a lot of comedy. It's as good for the adults as it is for the kids. So, I would say you can grab the kids, your grandma, Aunt Mabel, take the whole family. In fact, take the neighborhood to go see "The Incredibles." It might be one of the best movies you've seen all year long.

SANCHEZ: The technique with the animation here, they're calling it human animation. Is it different from what we've seen before, or is it different from a movie coming out next week, where it's going to be really bizarre?

Well, it's very different than the movie we're going to see next week, "Polar Express." And the thing with the guys at Pixar is they seem to have figured it out. A lot of the other companies are trying to figure out, do I make the characters more human, more animated. Where does this thing end up? I think these guys hit it right on the money. You're going to watch this movie, you're not going to be distracted by the animation. You're going to think it really helps the story. But the great thing about the movie is the fact that the story is terrific. We're not really focused on the animation; we're focused on these superheroes getting back into the game. So like I said, this is one of the best movies of the year, and I think you're going to really love it.

SANCHEZ: No, listen, I've got four kids. Pixar for me has made going to the movies with my kids fun again. Let me ask you about a movie I probably can't take my kids to "Alfie."

LEATHERMAN: Yes, I wouldn't take the kids, but you might want to grab Daryn over there and take her, because she's going to like this one. The ladies love Jude Law, and I think every man wants to be Jude Law.

KAGAN: Jude Law is no Rick Sanchez, I'm here to tell you.

LEATHERMAN: That's what I'm talking about. But he is something. And he's really terrific in this movie. It's a remake of the 1966 movie with Michael Caine. He's really a womanizing limo driver who goes around and tries to bed every woman he can find, and sort of leaves a path of destruction in his wake. I think this is a really good movie. And here's why, very few people could pull this role off. Jude Law is a very charming guy. You want to hate the guy, but you can't really hate him. Maybe Hugh Grant could have done it. But you know, what, he's a cad, but we somehow end up sympathizing with him and loving him.

So I like this movie. It's not terrific, but it's certainly not as bad as a lot of people are saying, and I think it's worth checking out.

SANCHEZ: Yes, you know what, I could have pulled that off.

LEATHERMAN: I think you could have, Rick, just knowing you in the little time I have, I'm pretty sure.

SANCHEZ: My wife is laughing as we speak, I know it; I can hear her now.

Hey, thanks a lot. Look forward to talking again next week.

LEATHERMAN: Absolutely. Any time. Thanks so much.

SANCHEZ: For more on the movies and all the latest entertainment news, launch your Internet browser, ping to CNN.com/entertainment, and we're back in a flash ourselves in just a bit with the weekend forecast.

(COMMERCIAL BREAK)

KAGAN: Another dream came true on the football field of Gilberts High School in Gilbert, Arizona.

Patty Kirkpatrick has this real life fairy tale from affiliate station KTVK.

(BEGIN VIDEOTAPE)

PATTY KIRKPATRICK, KTVK REPORTER (voice-over): Marisa Robson (ph) and Joe Mclarny (ph) are sweethearts at Gilberts Highland High School.

UNIDENTIFIED FEMALE: I feel happy.

KIRKPATRICK: They are special in more ways than one. The pair were crowned as homecoming king and queen.

QUESTION: How's that make you feel when you got to put the crown on?

UNIDENTIFIED MALE: Happy.

QUESTION: Happy?

KIRKPATRICK: But it was almost not to be. Highland's 2,500 students nominated three boys and three girls as homecoming finalists. Both Marisa and Joe made the final cut. But their parents and teachers wondered if that was really a good thing. What would happen if they didn't win?

UNIDENTIFIED FEMALE: Tried to prepare them for, well, you know, it is just an honor to be nominated.

KIRKPATRICK: Home video catches the special moment.

UNIDENTIFIED MALE: Patrick Houston (ph) and Marisa Robson (ph)

KIRKPATRICK: Marisa wins. But the winner for homecoming king is the kicker on the football team, Patrick Houston.

UNIDENTIFIED MALE: They mentioned my name, then her name. And it's like, I don't know, I kind of looked over at Joe. It's like, I don't know, it's got to go to him.

KIRKPATRICK: So as quickly as last year's homecoming king can crown Patrick, the 17-year-old senior decides to turn over his crown and his cape to Joe.

UNIDENTIFIED MALE: Seeing Joe's face once I gave it to him and shaking his hand, I mean, there's no better feeling, I don't think than that one right there.

KIRKPATRICK: For Highland's students and parents, there's hardly a dry eye in the house.

UNIDENTIFIED FEMALE: It was just -- it was overwhelming. It was amazing.

KIRKPATRICK: For Joe and Marisa, words can't describe the gratitude they feel.

UNIDENTIFIED MALE: I think that Pat's a nice guy.

(END VIDEOTAPE)

KAGAN: Look at the beaming faces. You know, at his homecoming, the kicker who turned over the crown, Patrick Houston, he said his goal today is to become someone's hero. For many, he has already done.

SANCHEZ: He certainly has. That was a nice gesture.

KAGAN: KTVK, my old TV station I used to work at.

SANCHEZ: He's a kicker. If he was a linebacker, he wouldn't have.

KAGAN: Probably not.

Just east of Phoenix, the folks in Gilbert. So congratulations to all of them.

(WEATHER REPORT)

KAGAN: And the second hour of CNN LIVE TODAY begins right now.

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