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CNN SATURDAY MORNING NEWS

Ernesto Soaks Atlantic Coast; Hurricane John Hits Mexico; Kofi Annan Meets With Iranian Leadership

Aired September 2, 2006 - 07:00   ET

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

RANDI KAYE, CNN ANCHOR: Ernesto soaks the Atlantic coast. This morning, extensive flooding reported across Virginia, Maryland and North Carolina.
RICK SANCHEZ, CNN ANCHOR: We have been watching the storm for you throughout the morning with a host of CNN affiliates up and down the coast.

We've also got CNN reporter Rob Marciano standing by. He's going to be in Virginia. And Ines Ferre, she's in Maryland. They're going to join us live with the latest in just a little bit.

KAYE: Also, Hurricane John roars ashore in Mexico. CNN's Harris Whitbeck rode out the storm and we will talk with him in just a moment.

SANCHEZ: From the CNN Center, this is CNN SATURDAY MORNING.

It's September 2nd.

Good morning.

I'm Rick Sanchez.

KAYE: And I'm Randi Kaye.

Betty Nguyen is off this week.

Thanks so much for being with us.

U.N. chief Kofi Annan is in Tehran. Topping the agenda is Iran's refusal two days ago to give up uranium enrichment. The Secretary- General is also seeking assurances that Iran will not try to rearm Hezbollah in Lebanon.

A live report Iran is coming up in about 30 minutes.

SANCHEZ: Also, the former president of Iran is in the United States today. Mohamad Khatami is scheduled to address the Islamic Society of North America tonight in suburban Chicago. He is the highest profile Iranian to visit the U.S. since Washington cut ties after the 1979 Islamic Revolution. Khatami will be in Washington and New York next week.

KAYE: Violence across Iraq has claimed at least 20 lives since yesterday. Two people were killed by a pair of car bombs today in Baghdad. Three traffic police were shot to death in the city of Baquba. And 14 pilgrims from Pakistan and India on a bus headed to Karbala were shot to death yesterday by gunmen.

In Britain, authorities say anti-terror sweeps have netted 16 suspects in London and Manchester. Scotland Yard says 14 of the men were arrested after months of surveillance. One raid reportedly took place at a restaurant. An official statement said the men were arrested on suspicion of the "commission, preparation or instigation of acts of terrorism."

SANCHEZ: A spokesperson for AirTran Airways says one of its jets made an emergency landing in Denver early this morning because of a passenger's strange behavior. Flight 47 was headed from Atlanta to San Francisco. The official says the male passenger had collected numerous air sickness bags, kept ducking in and out of the bathrooms and ignored commands from the flight crew. The man was arrested in Denver.

KAYE: We run-down the top stories every 15 minutes here on CNN SATURDAY MORNING, with in-depth coverage all morning long.

Your next check of the headlines is coming up at 7:15 Eastern.

We begin this morning with Ernesto's wet rampage along the East Coast. First to Virginia, where Ernesto has taken lives and left hundreds of thousands drenched and powerless. Crews are out this morning trying to assess the damage.

Let's get first to CNN's Rob Marciano.

He is along the Virginia coast -- Rob, how is it looking there this morning?

ROB MARCIANO, CNN METEOROLOGIST: Well, it's a little bit drier this morning, thankfully, Randi.

Just a little bit of mist in the air. But the floodwaters, for the most part, receded quite a bit. They came in with this storm, a storm that, in some places, brought over 10 inches of rain in a short amount of time. That's enough to flood just about anywhere.

You couple that with a bit of a storm surge. The Chesapeake Bay behind me. Tidal surges anywhere from three to four feet above normal, and this town in eastern Virginia, right along the tidewater here near the Hampton Roads area, we saw flooding here in the town of Poquoson knee, and, in some cases, waist deep.

So folks here who saw some serious flooding back in 2003 from Hurricane Isabel saw another batch of flooding from Tropical Storm Ernesto.

As you mentioned, a lot of people without power. At the height of the storm, over 200, 000 people without power. Emergency crews or utility crews were not allowed to go out because it was so windy and so dangerous. But that number has now dropped to under 100, 0000. There were some fatalities. Just up the road in Gloucester County. With all of the rain not only from this storm, but they had a batch of severe storms earlier in the week. So the ground was already saturated. So it didn't take hurricane force winds to knock down trees. We had winds 30, 40, in some cases gusting to 50 miles an hour.

That was enough to take down trees, some power lines and the fatalities in Gloucester County were from a tree that fell on top of their home while they were inside. So, even though Tropical Storm Ernesto never made it to hurricane status, at landfall, certainly a dangerous storm.

The good news this morning is that things are starting to dry out -- Randi.

KAYE: All right, thank you, Rob.

We'll check back with you a little bit later on.

SANCHEZ: Let's do this now. Let's move north to Maryland. That's where some heavy rain from Ernesto has forced evacuations.

CNN's Ines Ferre is joining us now.

She is in Annapolis, I understand.

What's the situation there -- Ines?

INES FERRE, CNN CORRESPONDENT: Well, Rick, right now I'm right next to the city dock here in downtown Annapolis, one of the lowest points of the city. And we talked to some boat owners who say that during high tide about six hours ago, the water had risen just above the wooden dock over there and one boat owner, Jerry Rudi (ph), said that he had to get up four to five times to loosen the tie that -- the tie line for his boat. But we can see right now we're at low tide and we're expecting another high tide in about six hours.

One of the big concerns here are the storefronts just across the dock. You can see some of the sandbags that storeowners have put out right in front of their storefront. The city has been preparing for Ernesto for days now.

A lot of people here recall Hurricane Isabel in 2003, where they say that the water had risen just to waist high. A lot -- all these stores had to close.

And right here, you can see where this morning, during high tide, the water came just -- just up to this -- to the entrance, right above the step here.

So we spoke to the harbor master last night. He said that they were really taking a look at the winds. That's one of the big factors, with the tide. But he said this could have been worse. It could have been a full moon and it could have been a worse high tide -- Rick.

SANCHEZ: Ines Ferre taking a look at the situation there. And as you say, it does appear to be much better than some had anticipated -- Randi, back over to you.

KAYE: OK, thanks, Rick.

Hurricane John looses a little steam, roaring up the Baja Peninsula today, but mostly sparing resorts like Cabo San Lucas. Still, the category two storm's high winds and lashing rain chased thousands into shelters in Mexico. But it could have been worse.

CNN's Harris Whitbeck is live on the phone from Cabo San Lucas -- good morning, Harris.

HARRIS WHITBECK, CNN CORRESPONDENT: Good morning, Randi.

As you say, the major tourist towns on the Cabo -- on the Baja, California peninsula were spared. But Hurricane John is now -- has probably just headed over the city of La Paz, which is a city of about 150, 000 people on the eastern coast of the Baja Peninsula.

As you say, it has weakened slightly. And as it has interacted with land, it is expected that it will weaken even more.

Still, the big concern among local authorities is the amount of rain it might carry. And that rain could cause mudslides and flash floods in this part of the Baja Peninsula.

So there is still a lot of concern about that. A lot of people are still in shelters tonight, mostly local residents. Here in Cabo San Lucas, a lot of tourists are breathing a sigh of relief. Many thought they were going to have another night in shelters that were set up in their hotels. That order was lifted last night and most tourists were able to return to their rooms.

The question today is whether they're going to stay around and wait for the sunshine, which would take a couple of days, or try to get flights back out. And with the weather conditions the way they are, still no word as to when the airports in the region might reopen -- Randi.

KAYE: And, Harris, from what I understand, about 7, 000 people spent the night in hotel ballrooms, as well.

Where did you ride it out?

WHITBECK: I was outside waiting for it. We were -- we're staying at a hotel, obviously. And we were allowed to stand near the beach and, you know, watch this phenomenon. Again, it wasn't as bad as we thought. It could have been a lot worse. But at the last minute the storm just kind of wobbled to the east and spared the Cabo San Lucas and Los Cabos area, which is a major tourism destination here on the peninsula, and headed northeast.

Not much word about how La Paz is riding this out. Again, that's a population of about 150, 000 people, so we have to check that out and keep an eye on what might be going on up there. KAYE: All right, we'll get that from you later on in the show.

Thanks.

Harris Whitbeck reporting for us live.

SANCHEZ: Thousands of American tourists were caught in this storm.

And Steve Vann is the consular chief at the U.S. Embassy in Mexico-City.

He's joining us now live by phone this morning to give you a sense now of what they are doing to try and give some relief to some of the people who may feel that they're trapped in that area because, as you just heard in that report, Mr. Vann -- I don't know if you did or not -- but the airports haven't opened yet. Some people may want to be able to get out of there.

Is there anything that you can do to help them?

STEVE VANN, CONSULAR CHIEF, U.S. EMBASSY, MEXICO CITY: Absolutely.

The primary goal of being here is to assist Americans who have need. And right now, one of the major issues will be getting people out. I know the airport was closed yesterday and there were people who were trying to leave who couldn't.

So we plan on being at the airport first thing that it opens. I've been in touch with the airport manager and he's given us a pledge of assistance. So as soon as it's light and the airport is open, someone will be out there.

SANCHEZ: You know, obviously as a tourist, you pays your money and you takes your chance. You go to a place like this and, you know, if they're getting hit by a storm, you might lose electricity, you might be uncomfortable in your hotel. But for the most part, you get to ride it out.

It doesn't sound like this has been extremely severe.

Have you gotten any calls that would read different than what I just described?

What kind of response are you getting from Americans who are spending time there around Cabo?

VANN: You're absolutely right. It's been pretty quiet. I think we dodged a bullet. The hurricane, the last I heard, is going up the east coast of Cabo and it's of -- it's reduced in force. So we've been pretty lucky here. Mostly it's just been some light winds, not nothing heavy. A lot of rain -- I mean quite a lot of rain. So we're still urging people to stay inside, listen to the emergency services, you know, before they venture out and, you know, it's still a hurricane warning so still treat it as such. SANCHEZ: But if they do need help, they can call your office?

VANN: Well, they can call -- there are several numbers they can call and we're here.

SANCHEZ: OK.

VANN: They can call the consular agcy or, you know, if they get through to the State Department or the embassy, they'll be able to get in touch with us.

SANCHEZ: Steve Vann, consular chief at the U.S. Embassy in Mexico-City.

Let's do this now. Let's go over to Reynolds Wolf.

He's been following this storm -- John -- it looks like John is really the one who could be somewhat problematic, although, all things considered, it's pretty much died down, as well, right, and is heading out?

REYNOLDS WOLF, CNN METEOROLOGIST: Absolutely.

It's going to be affecting parts of the Baja and eventually moving deeper into the Pacific and not really affecting much of us. Thankfully, it could have been a lot worse, Rick, as we just mentioned moments ago. But things will be improving for the Baja.

Meanwhile, in the Northeast, we're still dealing with the after effects of Ernesto, or, rather, what is left of Ernesto. Heavy rainfall this morning up near New York, into Wilmington, Philadelphia, back up to Allentown.

Now, in Scranton and Hazelton, you'll remember, just a month or so ago, they were dealing with some severe flooding. That rain is now going to be drifting right through that territory. They could see another one to three inches of rain before all is said and done.

As we make our way back over toward Pittsburgh, more of the same, too. They could see anywhere from one to two, maybe even as much as three inches of rainfall as this system edges its way farther to the north.

(WEATHER REPORT)

ANNOUNCER: CNN, your hurricane headquarters.

KAYE: And we are just getting warmed up this morning.

Straight ahead, the manhunt in New York intensifies. Three state troopers shot and the suspect is still on the run.

SANCHEZ: New this morning, Kofi Annan arrives in Iran. He's trying to defuse that nuclear showdown that's going on there.

We're going to get a live report from the Iran capital. KAYE: And remember the very public spat between Brooke Shields and Tom Cruise?

Well, there may be a truce between the superstars. Yes, cubit?

We'll fill you in a little later on CNN SATURDAY MORNING.

(COMMERCIAL BREAK)

SANCHEZ: It was supposed to be kept anonymous. But the identity of a senator opposing a spending disclosure bill is revealed and we're going to tell you how that happened coming up in our 8:00 hour.

Also, in about five minutes, we're going to update you on the hunt for the man suspected of gunning down three New York State troopers.

Stay with CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAYE: Now in the news, Ernesto downgraded this morning, but it's still posing plenty of flooding problems. The storm is being blamed for at least six deaths. Hundreds of thousands are still without power across the midatlantic. Flood watches and warnings are posted for several Eastern states.

Mexico's Baja Peninsula capital La Paz braces for 100 mile per hour winds. But Hurricane John appears to have spared the popular tourist areas like Cabo San Lucas. Up to 18 inches of rain, however, could trigger flooding and, of course, mudslides in some areas.

Reynolds Wolf is standing by.

He's got all the news on all of these storms.

It looks like a lot of these folks are in the clear though, right?

WOLF: Absolutely.

You know, things are going to be much better for today. We're already showing you live images from where Rob Marciano has been stationed in parts of Virginia where the skies are beginning to clear up a little bit and things, as he reported, are drying out.

Now, what is left of Ernesto is going to be traveling a bit more to the north, places like Buffalo and Syracuse. Partly cloudy skies now. But this whole swath of rain is going to be moving in through your neighborhoods. You're going to be getting some heavy rain at times, anywhere from one to two, maybe as much as three or four inches of rain as this system edges to the north.

But it is in its dying stages. In fact, not even a depression at this time. It just, again, what is left of Ernesto. If you happen to be, say, in New York or Boston, you're going to be dealing with the scattered showers for much of the day. Over to Detroit, not much for you. But for Cleveland, you'll be seeing a few scattered showers.

Zooming in closer to a few places, Philadelphia, you're going to be dealing with scattered showers here and there. Still, everything falling from the south to the north, into the Northeast from Allentown back up to Scranton. Some heavier rainfall now moving through Elmira and back over to Binghamton, as well.

That is a look at your forecast.

We're going to have more on that coming up very soon.

And let's send it back to you at the news desk.

KAYE: OK, thank you, Reynolds.

WOLF: You bet.

KAYE: Rick.

SANCHEZ: U.N. Chief Kofi Annan is in Tehran. He's topping the agenda on Iran's refusal two days ago to give up Iranian -- pardon me -- uranium enrichment. The Secretary-General is also seeking assurances that Iran will not try to rearm Hezbollah in Lebanon.

A live report from Iran is coming up on this in about 20 minutes from now.

British authorities say anti-terror sweeps have netted 16 suspects in London and Manchester. Scotland Yard says 14 of the men were arrested after months of surveillance. One raid reportedly took place in a restaurant. An official statement said the men were arrested on suspicion of the "commission, preparation or instigation of acts of terrorism."

The debate over Pluto might not be over yet. The Reuters News Service reports that hundreds of U.S. scientists are challenging a decision by world astronomers to strip Pluto of its status as a planet. The scientists reject the group's definition of what constitutes a planet. And then on and on we go.

We run-down the top stories every 15 minutes here on CNN SATURDAY MORNING, with in-depth coverage all morning long.

Your next check of the headlines is coming up at 7:30 Eastern.

KAYE: In New York, authorities have upped the ante in the search for an escaped convict suspected of shooting two state troopers this week and a third in April. The troopers union says they've more than quadrupled the reward money for any information leading to the arrest of Ralph "Bucky" Phillips. It's jumped from $50, 000 to $225, 000.

More from Melissa Holmes of our affiliate station WIVB. (BEGIN VIDEO TAPE)

MELISSA HOLMES, WIVB CORRESPONDENT: Are you surprised that it came to this?

UNIDENTIFIED FEMALE: No. No, not at all. Not at all, because you mess with family. You're messing with family.

HOLMES (voice-over): Some of Ralph "Bucky" Phillips' friends and family members continue to defend him, even now that the fugitive is suspected of shooting two state troopers in Chautauqua County.

UNIDENTIFIED FEMALE: Bucky is not a bad guy and they're -- I don't understand why they're going after him like -- why aren't they going after him like bad people? He's not a bad person.

HOLMES: Some believe if Phillips did pull the trigger on the troopers last night, it may have been because his grandchildren were taken away from their mother this week. They believe police went too far, using Phillips' family to try and lure him in.

UNIDENTIFIED FEMALE: And it came down to using the grandchildren as a tool because they can't do it themselves.

UNIDENTIFIED FEMALE: For someone that has been hunted these many months with this amount of manpower, to purposefully antagonize an individual by stripping away family members -- what did they expect the response would be, you know? Is he just going to walk out and surrender and say well, here I am?

UNIDENTIFIED FEMALE: We have all been through a lot and we're tired and we want it to end. But I don't want to it to end like this. I don't want him to die.

HOLMES: Phillips' sister is making a plea to her brother, hoping this manhunt and the violence will come to an end.

UNIDENTIFIED FEMALE: I just want to say that I love you and I wish this wasn't happening and I wish you wouldn't have done this.

UNIDENTIFIED FEMALE: If they get him in sight, they're going to shoot him. I know they're going to kill him.

(END VIDEO TAPE)

SANCHEZ: Wow!

KAYE: That was Melissa Holmes of our affiliate station, WIVB-TV.

SANCHEZ: Shifting gears here somewhat, the college football season is upon us, as if most people haven't noticed by now. There are dozens of season openers right through Monday. In fact, they started just last night, right, or Thursday?

The sports doctor, Rick Horrow, is going to be joining us next to talk about the business of sports. KAYE: And it's apparently mea culpa, mea culpa. Brooke Shields says Tom Cruise offers her an apology.

(COMMERCIAL BREAK)

SANCHEZ: College football is not just for weekends anymore, at least not just Saturdays. The '06-'07 season kicked off Thursday with 29 games, more weekday games than ever before. College football has really developed into a family event. And this year, some may get to see a 12th regular season game.

Now, that could mean substantial television money for some of the teams. Almost 33 million fans attended college football games last year.

This season, those game tickets will probably cost a few dollars more. And when fans fill the stands, there's lots and lots of teams' merchandise to buy, as well.

What does this all add up to?

Sports and money. If you don't think it's big business, college football, college basketball, college baseball, then you haven't been paying attention lately.

Somebody who knows that all too well is sports business analyst Rick Horrow.

He's the author of "When the Game Is On the Line."

And Rick is good enough to join us this morning from West Palm Beach, Florida -- hey, Rick, how are you?

RICK HORROW, CNN SPORTS BUSINESS ANALYST: Hey, Sanchez, listen, you just called me the sports doctor. If that were the case, I could charge a lot higher for my services. So I appreciate the effort.

And, by the way, I'm opening the jacket and the shirt today so you can see the football tie, which not only doesn't match anything, but it's the only way to kick off the season, let me say.

SANCHEZ: What is it? Is it Gator, Hurricane or Seminole?

HORROW: It's generic. I'm going to the game. I'm a Miamian. You know that. So I'll be rooting loud for the Hurricanes. We'll see what happens Monday night. That will be a good game.

SANCHEZ: You know one thing I've noticed is you watch sports, you see lately -- especially the commercials. There's Wendy's. There's Ford. Home Depot all over the place.

Is there a corporatization taking place in the sports world, college sports world?

HORROW: Yes. A great word, and there is. And the reason why is there is a need -- it's a monetization. You know, these college programs average about $23 million in expenses. They've got to find them somewhere. And only 40 of them, Rick, as you may know, run-in the black.

So you go to corporate America and you try to get money -- $480 million in advertising revenue just for college games. In fact, the University of Maryland sold the rights to the field itself to Chevy Chase Bank for $20 million.

You're also looking for rich donors. T. Boone Pickens of Mesa Petroleum donated $165 million to Oklahoma State University. That was a great thing.

Corporations and Bowl Games -- Brut is now sponsoring the Sun- Bowl in El Paso. And never fear -- remember the pool land, Wheaties, their Independence Bowl, which everybody made fun-of? They lost a sponsor. They just got one three weeks ago called Petro Sun, starting next year.

Hey, so we can all rest a little easier as far as corporate America is concerned.

SANCHEZ: All right, let me ask you -- and I'm going to challenge you on this just a little bit -- if we let corporate America too much into the game, does it really lose its amateur status?

HORROW: Well, we lost its amateur status a long time ago, my friend.

SANCHEZ: Yes, but...

HORROW: College football...

SANCHEZ: Well, hold on.

Maybe we've lost it for the game, but we still treat the players -- if I was to send a dollar to a college football player, he would be kicked out and his team could be put on probation.

HORROW: No, if you'd send about $0.25, $0.30 he'd be kicked out.

SANCHEZ: Absolutely.

HORROW: And, by the way, that's for another day. We have a long issue about that. And we'll talk about it, certainly, before the Bowl Games. Nebraska, other states, have looked at how to maybe compensate athletes and understand that they bring a lot of money to these games.

It's going to bring -- it's going to come to a head during video games. You can use a likeness and a physical attribute of a player, but not his name. He doesn't get any money, the schools do.

So there's another example of raising revenue for schools.

Licensing, by the way, $3 billion in revenue. Ohio State just came out with a cereal called Buckeye Heroes, $3.95 a box. The official Ohio State logo on the cereal. SANCHEZ: Yes.

HORROW: They've got mustard, they've got other things, to raise money for the schools.

So they're looking at this, Rick, as a medium sized business (UNINTELLIGIBLE).

SANCHEZ: Yes, it almost -- it seems like the players are not getting a lot out of that, but the schools certainly are, and the athletic director is, as well.

Let me ask you what your foul ball is this week.

HORROW: Hey, Marion Jones. The A sample, B sample testing is coming back. We all know too well now, Landis, Gatlin, Barry Bonds -- who's taking steroids, who's not. Congress is looking into it again, at the NFL's expense, major league baseball.

And Marion Jones, we thought, might be above the fray. But now we're in this whole situation of what is her last test going to do and how are the doping and track authorities going to deal with it?

It's a negative situation.

SANCHEZ: All right, that's your foul ball, as we do each week.

We ask you now for your fair ball.

This is the good with the bad.

HORROW: Hey, this is a great with the bad. I don't know if you saw it.

Did you see that Baghdatis-Agassi match two nights ago in the U.S. Open? It was huge. It was incredible. It was the most exciting match that I've seen in a long time.

Andre Agassi is retiring from tennis, but the world hopes he takes a little longer to get there and maybe get into the second week at the U.S. Open. He makes $12 million a year for his charitable foundation. He won $30 million in his career for prize money on the court.

That doesn't tell the story -- $300 million in endorsements and truly a tennis ambassador.

A shameless plug. I'll be at the Open next week, so we'll talk a little bit about tennis then, too, man.

SANCHEZ: It's Saturday morning and what better to be talking sports with Rick Horrow, a good old friend?

Thanks so much, Rick.

HORROW: All right. SANCHEZ: Appreciate you taking the time to talk to us.

HORROW: Talk to you guys next week.

SANCHEZ: All right.

Still ahead here on CNN SATURDAY MORNING, the head of the United -- pardon me. The head of the United Nations is now in Tehran to make another play at diplomacy. A live report is just ahead.

Stay with us.

(COMMERCIAL BREAK)

WOLF: You know it seems like such a simple game. I mean you get there, you get the club, you swing and you hit the ball. But it can be frustrating. However, you won't be frustrated if you're playing golf today in Houston. Your Fairway Forecast looks pretty good there.

High temperatures warming up to 85 degrees, with a mix of sunshine and clouds and wind out of the southeast anywhere from five or 10 miles per hour.

That's a look at today's Fairway Forecast.

(COMMERCIAL BREAK)

KAYE: Now in the news, Ernesto is still a storm to be reckoned with. Flash flood watches and warnings are in effect along the Atlantic Coast. Hundreds of thousands of people are without power and Ernesto is blamed for at least six deaths.

It's raining sideways along Mexico's Baja Peninsula. Hurricane John made landfall there earlier today. The category two storm mostly spared local resort towns, but is lashing those beaches with gusting winds and driving rain.

A lot of people who cheated Uncle Sam on their tax returns this year probably got away with it. The Treasury inspector general says the IRS gave away $318 million in improper refunds. That is because a computer program that screens tax returns for fraud just wasn't working.

SANCHEZ: North Korea says that U.S. missile defense testing is increasing tensions on the Korean Peninsula. And it's accusing the U.S. of threatening war.

U.S. military officials say they are pleased with the latest test. An interceptor missile destroyed a mock warhead over the Pacific Ocean just yesterday.

Mexican President Vicente Fox was forced to abandon his last state of the nation address yesterday. Shortly before his scheduled speech, leftist lawmakers seized control of the stage. They were protesting July's disputed presidential election in which their candidate, Andres Obrador, lost by a narrow margin. Fox later delivered a televised address.

That election, by the way, has been disputed.

We run-down the top stories every 15 minutes here on CNN SATURDAY MORNING, with in-depth coverage all morning long.

Your next check of the headlines is coming up at 7:45 Eastern.

ANNOUNCER: CNN, your hurricane headquarters.

KAYE: Welcome back to CNN SATURDAY MORNING.

I'm Randi Kaye.

SANCHEZ: And I'm Rick Sanchez.

Let's do this. Let's get caught up on what's going on weather wise, because we've got two systems, really, one on the East Coast and one on the West Coast, that we've been following for you.

Reynolds Wolf standing by -- Reynolds.

WOLF: OK, guys.

Let's take a look at what's happening on the east side of things, then we'll head out onto the west side.

Right now up into New England, parts of the Great Lakes, we're seeing some scattered showers, some storms. In terms of severity, these storms are not really that strong. But they're bringing some heavy rainfall, anywhere from one to three inches of rain, in some places, as much as four.

And as this charges its way to the north, it is going to be losing quite a bit of its punch. But still, there could be some flash flooding. Certainly something you want to watch out for in parts of New York, up in Philadelphia, even in Williamsport, even in Binghamton. Elmira about to get some heavy showers at this hour. And we're going to be seeing that throughout the afternoon and into the evening, as well, in places like Pittsburgh.

Meanwhile, we're also taking a look at the rest of the nation. And we're seeing John off the Baja. That will be starting its way out into the Pacific, interacting with cooler water and then dying out, thankfully. And we're going to see some scattered showers in parts of the Four Corners, perhaps some flooding in El Paso.

We'll have more on your forecast around the nation coming up in just a few moments -- back to you.

SANCHEZ: All right, Reynolds, thanks so much.

You know, British authorities apparently have announced another round of terror suspects. This time, 16 men were arrested in London and Manchester.

Let's try and get the latest on this.

We have our political editor, Robin Oakley, who is in London following this -- Robin, is this tied to any specific threat or crime?

ROBIN OAKLEY, CNN CORRESPONDENT: No, not on this occasion, Rick. There were 14 men picked up in London, as you say. Twelve of them at a Chinese restaurant late last night, two others in Greater Manchester in northern England. But police are saying these are in connection with potential offenses to do with the recruitment and training of terrorists.

They are stressing there's no particular link, for example, to the alleged plot to blow up airliners en route from the -- from Britain to the U.S. which was disclosed on August the 10th, or, indeed, to the July 7 bombings last year on the London subway, when four suicide bombers killed 52 people.

This is much more a part of the general surveillance, in particular of the Muslim community in Britain, with regard to potential support for and finance for terrorist operations -- Rick.

SANCHEZ: Are they almost being termed agitators? In other words, the kind of people that could create problems in the future, thereby making this a bit of a preemptive move on the part of authorities there?

OAKLEY: Well, what the authorities are saying, Peter Clark, who is head of anti-terrorism at Scotland Yard, the Metropolitan Police anti-terror chief, he's given an interview to the BBC due to be aired tomorrow in which he says that literally thousands of Muslims in Britain are now under surveillance. And not because they are all seen as being involved in specific plots -- though the home secretary, John Reed, has talked of 24 different plots being investigated -- but because these are seen as people who might be sympathetic to those with terrorist aims, who might help to cover up their activities or certainly not to reveal them even when they have knowledge of them -- Rick.

SANCHEZ: CNN European political editor, Robin Oakley, joining us now from London.

We thank you so much, Robin -- Randi, over to you.

KAYE: Turning now to Iran. The European Union wants to give Tehran two more weeks to meet a U.N. ultimatum to stop enriching uranium. Iran ignored Thursday's deadline and indicated it would not budge on the issue.

Meanwhile, U.N. Secretary-General Kofi Annan has arrived in Tehran to try to dissuade Iran's leaders from provoking an international showdown.

CNN's Aneesh Raman is one of the few Western journalists in Iran.

He joins us by phone with an update -- hello, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Randi, good morning.

The Secretary-General arrived here a short time ago. He has already met with the country's foreign minister. He will meet later today with the country's chief nuclear negotiator. But tomorrow is the big meeting. That's when he'll meet Iran's president, Mahmood Ahmadinejad.

We don't know whether we'll hear from the Secretary-General until then.

On his agenda, undoubtedly, though, as you mentioned, the nuclear standoff between Iran and the West. Iran has already defied a U.N. deadline that was set for the end of August. It is unclear how -- what kind of deal could really emerge to get Iran, in the next two weeks, to agree to suspend its nuclear program.

All along, Iranian officials have said that isn't even on the table for negotiations. But they are calling for new talks. They are looking to appease international concerns that they are developing a nuclear weapon. The government denies that.

But, again, also on the agenda will be Hezbollah and the conflict that took place between them and Israel. Iran a big backer of Hezbollah. Iran, a country that claimed a vicarious victory after the war was over. Annan undoubtedly will bring that issue up with Iranian officials and see if they can use any of their influence to try and hold this cease-fire -- Randi.

KAYE: Aneesh, how is the Secretary-General's visit being received there?

RAMAN: You know, a lot of Iranians couldn't care less about the diplomacy that's going on right now for a number of reasons, not the least of which, they are observers in this country. They're not active participants. They know what's, you know, what's been happening for the past years, if you will, within this nuclear standoff. No one is expecting a dramatic turn of events because of the Secretary-General's visit.

So the press is covering it, but the people aren't really paying much attention. They weren't paying much attention on August 31st, at the deadline. They're not paying much attention now. They're sort of resigned to the fact that where their government wants to go, they have to follow.

They want dramatic domestic economic reform. Their government wants a dramatic escalation in international clout. And, of course, the latter takes precedence over the former -- Randi.

KAYE: Aneesh Raman thank you for that report from Iran this morning.

"Going Global" now for other developments overseas.

SANCHEZ: Our Brenda Bernard is joining us now from the International Desk -- catch us up, Brenda. BRENDA BERNARD, CNN CORRESPONDENT: Good...

SANCHEZ: What do you have to share with us this morning?

BERNARD: Good morning, Rick.

The U.N. peacekeeping mission in Lebanon gets a big boost. About 100 Italian Marines arrived on U.N. helicopters and small boats at the port city of Tyre. Their first task is to secure two beaches where at least 800 troops will come ashore over the weekend. It's the first large contingent of international peacekeeping troops to arrive in Lebanon since the war between Israel and Hezbollah ended last month.

Check out this latest video of Cuban President Fidel Castro. He was shown in his hospital bed chatting with Venezuelan President Hugo Chavez and looking very animated. This comes one month after Mr. Castro's intestinal surgery. The video appears aimed at putting to rest those rumors that the 80-year-old Cuban leader was near death.

And a fiery festival in El Salvador. It's an annual church event just outside the capital. Young men set fire to gas-soaked rags and throw them at one another. The ritual is in honor of a huge 1922 volcanic eruption. Villagers say that fireballs are used because the hot lava that spewed from above was actually the local Christian St. Geronimo fighting the devil with balls of fire -- Rick.

SANCHEZ: I got it. Taking notes, as a matter of fact, as you speak.

KAYE: It doesn't look very safe.

SANCHEZ: No, it certainly doesn't.

KAYE: Man.

BERNARD: It looks like boys gone wild to me, but...

SANCHEZ: Not one I'd send my kids to.

KAYE: Yes.

SANCHEZ: Thanks so much.

Appreciate it.

BERNARD: Sure.

KAYE: No longer a tropical depression, Ernesto is just, well, depressing. And this storm is drenching the midatlantic states.

SANCHEZ: Reynolds Wolf is on top of those developments for us and also other stories that we're going to be following throughout the day -- but, Reynolds, what's going on with the storms?

WOLF: What we're looking at right now are just some flood watches scattered throughout parts of the Northeast. At the same time, we've got John moving right along parts of the Baja, bringing heavy rainfall there. And a chance of flooding in parts of West Texas and into the Four Corners.

Coming up, we'll take a look at what you can expect not just for today, but through the rest of your holiday weekend.

That's coming up.

SANCHEZ: All right, thanks, Reynolds.

Also, what's up with Tom Cruise and what did he reportedly say to Brooke Shields?

We're going to tell you all about it when we gather round the Water Cooler.

(COMMERCIAL BREAK)

WOLF: Hi, folks.

I'm Reynolds Wolf.

And, you know, nobody, nobody likes to be sniffling and sneezing and suffering from allergies. But if you happen to be in parts of the Four Corners and the Central Plains and up into the upper portion of the Mississippi Valley, you may be dealing with those issues.

Meanwhile, in the Northern Plains and in South Texas, you will be breathing easy.

That's a look at today's Allergy Report.

(COMMERCIAL BREAK)

KAYE: Now in the news, Ernesto is still a storm to be reckoned with. Flash flood watches and warnings are in effect along the Atlantic Coast. Hundreds of thousands of people are without power and Ernesto is blamed for at least six deaths.

Thanks to a last minute wobble, Hurricane John spared Baja Peninsula resorts from the worst of the storm. But thousands of tourists were stranded, many spending the night in hotel ballrooms. Local residents huddled in schools turned to shelters.

SANCHEZ: U.N. Chief Kofi Annan is in Tehran. The Secretary- General receiving assurances that Iran will not try to rearm Hezbollah in Lebanon.

Also topping the agenda is Iran's refusal two days ago to give up uranium enrichment.

In a related development, the European Union wants to give Iran more time to come around to the U.N. demand that it quit its nuclear program. Iran ignored Thursday's deadline. E.U. ministers have given it a two week extension. Iran has indicated on numerous occasions that it has no intention of giving up its pursuit of nuclear energy. A report from Reuters claims that violence in Gaza between Israeli forces and Palestinians earlier today left two Palestinians dead. Israeli troops entered a northern Gaza town and engaged in heavy clashes with Palestinian gunmen there. An Israeli Army spokesperson says that initial reports suggest the Israeli troops were fired on and then returned fire.

A third Palestinian was shot dead by troops near the Gaza border crossing.

We run-down the top stories every 15 minutes so you won't miss a beat here on CNN SATURDAY MORNING. In-depth coverage, as well, all morning long. Your next check of the headlines is coming up at the top of the hour.

KAYE: Ernesto, as you know by now, is one big, wet storm. It's moving north into New Jersey and New York this morning, where flash flood warnings are in effect.

Earlier in North Carolina, Ernesto dumped up to 12 inches of rain and flooding is still a major concern.

Jack Madison of affiliate WWAY reports.

(BEGIN VIDEO TAPE)

JACK MADISON, WWAY CORRESPONDENT (voice-over): It's been a long day for the Acme Delco-Riegelwood Fire & Rescue Squad members.

UNIDENTIFIED MALE: We can go door-to-door through here, check everybody and see if they want to get out.

MADISON: They're asking residents if they want to leave their homes -- homes with rising water around them -- behind.

Martin Benton says this is the worst flooding he's seen here since Hurricane Floyd and he's mad that the floodwaters continue to creep up even after the rain has passed.

MARTIN BENTON: If they would unplug this creek down here, Livison Creek (ph) -- we've been trying to get them to do it for -- ever since Floyd came through and they won't do it. This water is backed up now and that (UNINTELLIGIBLE) fixing to turn loose in Raleigh we just heard, opening the floodgates up there. They don't worry about we people down here. Put it on the news.

MADISON: Rescue workers are using a boat to carry some of the people's belongings. And not knowing if this will get worse before it gets better, emergency services is getting ready for more evacuations.

UNIDENTIFIED MALE: We're making arrangements now to open up a shelter, if possible, if we need it for them. We may shelter them at the fire station if it's also needed. We're working with Red Cross. They're already working on that for us.

This was a little bit more than what we had expected. (END VIDEO TAPE)

SANCHEZ: Of course, we're also keeping an eye online on Hurricane John and the remnants of Ernesto.

Veronica de la Cruz is joining us now with the very latest from the Dot-Com Desk -- what can you share with us?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Well, Rick, as you know, Hurricane John and Ernesto are the latest storms to create havoc for both tourists and residents in North America. But, Rick, hurricane season is not over yet.

So you can always get more information online at cnn.com.

Now, for the second time, Ernesto made its way onshore Thursday night, this time dropping rain and causing major flooding along the Carolina coast. This projected path will show you where Ernesto will be later on this afternoon and through the weekend, bringing lots of rain, as you know, to Northeasterners on this Labor Day holiday.

And then Hurricane John barreled down on the Baja, Mexico- peninsula, forcing the evacuation of thousands of people. This gallery highlights the damage done by John to resorts in Acapulco-and Puerto Vallarta. You can find that gallery online.

Last year, six hurricanes hit the U.S. So early preparation is key for your safety. These evacuation tips can help you begin your planning if a storm comes your way. You can also read personal accounts from those who have lived through storms of the past on how they prepare for hurricane season.

You can find it all online in our special report. It's at cnn.com/hurricanes, which is a terrific resource.

Rick, we were just talking about that interactive on safety tips, as a matter of fact.

So we'd like to bring in our own Reynolds Wolf for a little expertise -- and, Reynolds, at cnn.com/hurricane, we have a list of safety tips. There are 10. We only have time for three.

So what are your top three?

WOLF: You know what's interesting about these tips? At least six of them include the words plan or prepare.

DE LA CRUZ: Right.

WOLF: I think those are the key things. I would say plan an escape route. That'd be a big one. Another thing would be put aside money. That is something that's really important.

DE LA CRUZ: And it's something that people always forget about.

WOLF: Absolutely. one of the first things that happens is the power goes out and you really can't use ATMs if you don't have that.

DE LA CRUZ: Right.

And you want to make a copy of all your documents and keep them in some kind of a waterproof case?

WOLF: Exactly. I mean how much video have we seen over the last couple of days of flooding...

DE LA CRUZ: Of the flooding, exactly.

WOLF: Flooding is a huge issue, so you've got to ward off from the water. So that's a good idea.

DE LA CRUZ: And I think the most important one is have a supply kit on hand.

WOLF: Yes. Non-perishable items, the most important thing. And you just don't have to think for yourself.

DE LA CRUZ: Right.

WOLF: Think for your entire family, the big picture there.

DE LA CRUZ: And what goes in that supply kit, quickly?

WOLF: Water, non-perishable food items, canned food, can opener. You've got to have the can opener.

DE LA CRUZ: Right.

WOLF: Very important.

Just a few ideas.

DE LA CRUZ: All right, we send it back to you guys.

Cnn.com/hurricane.

KAYE: Thank you, both.

SANCHEZ: And we'll take it from you.

KAYE: All right, I know this is the moment that you've been waiting for. You, as well. Keep it right here because the Water Cooler is next.

SANCHEZ: And you get to hear what Brooke Shields has to say about Tom Cruise.

Also, some are calling it a spat. That's right, they're using the sword.

We'll be back.

(COMMERCIAL BREAK) SANCHEZ: Believe it or not, that's the sound of coffee brewing this morning.

And good morning.

You know, there are some news items that just naturally generate talk, the kind of thing you want to sit around with a good friend, have a cup of coffee and talk about.

KAYE: We're doing it right now, today.

SANCHEZ: The Water Cooler.

KAYE: You bet. Today, we have an update on that ugly public feud between Brooke Shields and Tom Cruise. You may recall that Cruise had criticized Shields for using anti-depressants to overcome post-partum depression.

SANCHEZ: Well, you're also going to recall that Cruise is a devout Scientologist who says that depression can be overcome with vitamins and exercise.

Shields appeared last night on "The Tonight Show With Jay Leno."

And here is what she had to say about him.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO, COURTESY NBC)

BROOKE SHIELDS, ACTRESS: He had called me and he came over to my house. And he gave me a heartfelt apology. And he apologized for bringing me into the whole thing and for everything that happened. And through it all, I was so impressed with how heartfelt it was. And I didn't feel at any time that I had to defend myself or did I feel that he was trying to convince me of anything other than the fact that he was deeply sorry.

(END VIDEO CLIP)

KAYE: Wow!

She seems touched by that, actually.

SANCHEZ: It's almost like he almost needs to apologize to Matt Lauer, as well...

KAYE: Yes.

SANCHEZ: ... because he really got into Matt Lauer's face about this whole thing.

KAYE: And, actually, to Oprah, too, for jumping on her couch. She might need a new couch after that.

Well, there you have it.

SANCHEZ: Which, by the way, had nothing to do with Brooke Shields.

KAYE: Absolutely not. But still, she might need a new couch.

There you have it.

As far as Shields is concerned, I guess, all is forgiven.

SANCHEZ: Somehow I've got a feeling that Oprah can afford a couch or two.

KAYE: I think so.

SANCHEZ: We're going to get to our top story in just a moment, by the way. Ernesto's path -- flooding and heavy rains soaking the midatlantic coast.

KAYE: We'll take you live to the scene to show you the storm damage.

And then, it's been the big buzz on Capitol Hill all week. Who is the secret senator unmasked by bloggers?

We'll look at the political fallout.

SANCHEZ: That is straight ahead in our next hour.

First, though, Gerri Willis has your real estate Tip of the Day.

And there still are people out there fishing the markets -- Gerri.

(BEGIN VIDEO TAPE)

GERRI WILLIS, CNN CORRESPONDENT (voice-over): Tired of receiving all those credit card offers in the mail?

Optoutprescreen.com is the only site authorized by the four main credit reporting companies to accept and process these requests. Just keep in mind opting out of credit card offers will also take you off your own credit card company's list. If you want your credit line increased, your rewards program upgraded or your interest rate lowered, you will have to be the one to get in touch.

Not comfortable completing this process online?

Just call 1-888-5-OPT-OUT.

(on camera): I'm Gerri Willis and that's your Tip of the Day.

For more, watch "OPEN HOUSE" today, 9:30 a.m. Eastern, right here on CNN.

(END VIDEO TAPE)

(COMMERCIAL BREAK)

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