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CNN Live At Daybreak

Countdown in Iraq; Pledge Debate; Microsoft's European Jam; Carb Confusion

Aired March 24, 2004 - 05:30   ET

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


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


CAROL COSTELLO, CNN ANCHOR: Good morning to you. Welcome to the second half hour of DAYBREAK. It is Wednesday, March 24. From the CNN Global Headquarters in Atlanta, I'm Carol Costello. Thank you for waking up with us.
Former White House terrorism adviser Richard Clarke appears before the 9/11 Commission today. Clarke's new book is highly critical of President Bush's leadership.

Kobe Bryant will face his accuser today. She testifies in a closed preliminary hearing. The judge is trying to decide if the woman's sexual history is relevant in the rape case against Bryant.

More than a dozen world leaders are in Madrid this morning. They will attend a memorial service for the 190 people killed in the terror attacks in Spain. The service gets under way in just about 30 minutes.

And today marks the fifth anniversary of NATO's bombing campaign in Kosovo. It was started to stop the violence against ethnic Albanians in Serbia. At least 30 people have been killed in renewed clashes between the groups.

We update our 'Top Stories' every 15 minutes. The next update comes your way at 5:45 Eastern.

The clock is ticking. The scheduled handover of control to Iraq by the U.S.-led coalition is 100 days away, June 30.

Our Jim Clancy live in Baghdad now to tell us more.

Jim, what's going on there today?

JIM CLANCY, CNN CORRESPONDENT: Well, Carol, that's right, 100 days from now the Iraqis will have sovereignty, once again, over their country. And the U.S. administrator, the head of the coalition provisional authority, Ambassador Paul Bremer, is going to be talking with local officials, giving a speech, a major speech. And let's be clear here, this is a speech that's going to be aimed not just at these local officials, but a much broader audience both inside Iraq and outside.

In it the ambassador is not only going to recount what has been accomplished, but he is going to lay out the things that Iraqis, the coalition members and others in the international community, have to do in the coming 100 days to make this work. It's going to be an important speech. Already there is some acknowledgements that in terms of security the Iraqis may not quite be ready. But he says the U.S. military is still going to be standing by to assist in that job. And the situation will look pretty much the same as it does on the -- on June the 29th or June the 30th as it will on July the 1st. So that's the situation here. We're expecting that speech about three hours from now.

Talking about security, let's look at the situation in Fallujah. Two U.S. Marines reported wounded, a roadside bomb exploded and they returned fire. There are reports that many Iraqis were killed. One report says as many as six, others are saying only two were killed, others were wounded. The details of that, obviously, still being sorted out. Just more evidence of the pressure that the U.S. military is under here as it continues. So we're continuing to follow that.

And of course looking for the political developments that are going to be coming from the U.S. ambassador just a little bit later from now -- Carol.

COSTELLO: Busy day for you. Jim Clancy live from Baghdad.

In the ever-escalating Israeli-Palestinian conflict, the new leader of Hamas is a marked man, because Israel vows to kill the entire Hamas leadership.

Our senior international editor David Clinch joins us now with what this may mean for the region and even the world.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Hey, Carol.

Yes, well, Hamas has a new leader, at least in Gaza, for the temporarily or interim leader, although he may very well end up being the long-term leader, if he has a long term. This man Rantisi is at least as radical as Sheikh Yassin, the man Israel killed. And Israel has made it absolutely clear, as you say, that he is a marked man.

We are interested in talking to Rantisi to find out exactly what it is that he is going to do with this borrowed time that Israel is giving him. Of course the danger inherent in that, if we sit down to interview him, we expose ourselves to the danger that he could be hit by the Israelis at any time. These are real questions that we have to ask ourselves when we go about our business in Gaza, we're talking to these Hamas leaders, they are targets. That's made absolutely clear by Israel. We have to take that into account.

COSTELLO: Well, and some of the interesting things you may get out of this man. I mean Hamas is now threatening the United States.

CLINCH: Right. We looked into that yesterday. And interestingly, after we spoke about that yesterday morning, the U.S. having sort of mentioned that they were taking it seriously the day before, went beyond that and issued a specific statement yesterday saying that all Americans should leave Gaza. Now I can't imagine there are too many Americans in Gaza, but there are presumably some. Those people have been warned. And also beyond that, U.S. targets throughout the region taking that very seriously. We have had a report today from the United Arab Emirates that the U.S. embassy there has shut down, at least temporarily. Not clear whether that's specifically related to that Hamas threat. Of course the fear on that is that whether Hamas does anything or not, that other terrorist organizations may take Yassin's killing as an incentive or an inspiration for attacks on U.S. targets anywhere.

COSTELLO: Well there were protests even inside Iraq over Yassin's killing yesterday.

CLINCH: Right, which turned violent. And there -- we have seen and heard of demonstrations in Bahrain and elsewhere today which have turned violent. Again, the problem now emerging for the U.S. is that the distinction between what Israel does and what the U.S. does is being eliminated for many people on the ground there. They see Israel and the U.S. as the same.

COSTELLO: Well I think it's been that way for quite some time.

CLINCH: Yes, and probably not to change in the near future.

A couple of other stories we're looking at today, one in Mexico. We've got a few British cave explorers. They are called spelunkers I believe is the technical term for these people. It's a British military expedition caught in some caves in Mexico. We have sent a correspondent down from Mexico City to look into this. Just what we are hearing is that they are deep inside the caves and that floodwaters have risen so high that they can't get out.

COSTELLO: Well didn't I hear somewhere that they don't want to be rescued?

CLINCH: Well apparently the first communication from them was you know this happens all the time in caves, not that big of a deal, we'll get out eventually when the water comes down. But the rain -- I mean weather factors in here. It's apparently pouring with rain. So they may change their attitude over the next few hours if the rain keeps -- the water keeps getting higher.

COSTELLO: And they are scientists. I mean they are there -- aren't they, not just spelunkers, but aren't they scientists as well?

CLINCH: They are -- they are British military scientists. It's not clear exactly what they were doing there, but presumably this is what they do for a living or for their pastime. Although one thing is still under question whether they had official permission to be in these caves at this time. So we're looking into that as well.

COSTELLO: OK. Anything else?

CLINCH: Well a few other things. We're just hearing Microsoft is up against a big fine by the European Union today.

COSTELLO: Six hundred fourteen million dollars. CLINCH: Six hundred fourteen million dollars, apparently, is the fine. They say they will -- Microsoft say they will appeal. This is for them bunching a whole thing -- a bunch of Microsoft things together. EU says they can't do that, big fine.

COSTELLO: OK. David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: Here is a rundown of the witnesses at today's 9/11 Commission hearing, just so you know. George Tenet, CIA chief under both the Clinton and Bush administrations, will kick off the testimony. He will be followed by Clinton's National Security Adviser Sandy Berger, and then we'll hear from former counterterrorism chief Richard Clarke. Finally, Deputy Secretary of State Richard Armitage will testify before the committee. We will have live hourly coverage of today's commission hearing starting at 9:00 a.m. Eastern.

Are the words "under God" constitutional -- unconstitutional in the Pledge of Allegiance? That is the issue before the Supreme Court today.

Bob Franken has more for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): It's part of the pledge school children obediently recite every day.

UNIDENTIFIED MALE: One nation under God.

FRANKEN: While few ponder the significance of the slogan in God we trust on their money, is this...

UNIDENTIFIED FEMALE: Under God, indivisible.

FRANKEN: ... simple ceremony, or as an appeals court held, an unconstitutional endorsement of religion?

MICHAEL NEWDOW, ATHEIST: That old Pledge of Allegiance.

FRANKEN: Michael Newdow is an avowed atheist, who, in an usual move, is being allowed to argue his case himself that the words "under God" violate his and his daughter's First Amendment rights to be free from religion.

NEWDOW: As I have the right to be able to have my child in public school without her being inculcated with religious belief. You know this is supposed to be a public school. It's supposed to be religion free.

FRANKEN: The case coming so soon after 9/11 created a political uproar. One friend of the court brief calls "under God," inserted during the 1950s Cold War, "part of an American tapestry of patriotic and historical references." JAY SEKULOW, AMERICAN CENTER FOR LAW AND JUSTICE: Faith and America have a causal connection. There is a relationship between what our founding fathers thought about the values of human dignity and where that worth derives from different than any other country.

FRANKEN: Ann, the child's mother, says she has no objections to her daughter saying "under God."

(on camera): In addition, it is not clear the father, Newdow, had custody when he filed the lawsuit. So the key question might be does he have the right to bring the case at all?

Bob Franken, CNN, the Supreme Court.

(END VIDEOTAPE)

COSTELLO: Michael Newdow will be a guest on CNN's "PAULA ZAHN NOW." That airs tonight at 8:00 Eastern.

Let's head to the Forecast Center and check in with Chad right now.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: I'm just checking out Microsoft, because the verdict just came down in Brussels. You know we've been talking about that. We were talking about that earlier this morning.

Well the European Union has declared Microsoft guilty of abusing its near monopoly with a fine of up to $613 million. Microsoft, I believe, has two months to file a promised appeal and to be sure it will. And under this order that the -- under the EU's order, I should say, Microsoft will be allowed to continue selling a version of Windows with its media player software installed. But it must refrain from any commercial, technological or contractual terms that would make the stripped down version of Windows less attractive or performing. It says Microsoft has a monopoly on stuff out there, so the European Union has declared Microsoft guilty and could be fined up to $613 million.

We'll have more from Jim Boulden in Brussels a little later on DAYBREAK.

Now to news that could affect your health. The Food and Drug Administration has approved the first generic versions of the controversial painkiller Oxycontin. That means cancer patients and others suffering from painful illnesses will be able to pay much less for the drug. The narcotic can be lethal if chewed, snorted or injected.

Asthma suffers beware, researchers have found that an ingredient used in inhalers may counteract the benefits of other asthma drugs. Experts say that may explain why some patients who use the inhalers actually get worse over time.

And you know you are never too old to start eating right. A study in mice shows that a low calorie diet can help increase life span, regardless of when the dietary change takes place.

OK, we have Jim Boulden live from Brussels on the Microsoft (UNINTELLIGIBLE).

And, Jim, this probably has Microsoft reeling?

JIM BOULDEN, CNN CORRESPONDENT: Yes. It's not a surprise, though. The commission had to meet this morning and formalize this decision. The decision has been known for some time. Microsoft has already said that it will appeal.

Now the important thing here is Microsoft has two months to look at the decision. We're told it runs in hundreds and hundreds of pages. Two months from now it will then come back with its decision on what it wants to do and tell the -- tell the commission that. And then the appeals process begins. The European Court of Justice will hear about this. Could take up to a year before a judge hears this.

The key is does Microsoft have to stop doing these practices during the appeal? If it does not, then nothing changes. Microsoft will continue to bundle its media player in its operating system and it won't have to pay the fine. Some people say that could take three to five years for a final decision.

If Microsoft is told to stop doing this, then it will have to start to offer an operating system without media player. And that's because RealNetworks and Apple want people to have more choice when it comes to how to download music on a PC, how to listen to clips and one day to take down films and to watch films over their PC -- Carol.

COSTELLO: Again, a similar thing happened to Microsoft here in the United States. Microsoft appealed and was successful. What do you think might happen on the appeal in Europe?

BOULDEN: Well we talked to the RealNetworks lawyer yesterday. Of course RealNetworks brought this case to the European Commission. And he says that because it was unanimous within European Commission, because it's such a strong worded decision coming from the European Union to say that Microsoft is abusing its dominance with its operating system, he felt -- of course he said as he felt that no judge would overturn that ruling. However, the European Commission has had many of its decisions overturned.

Mario Monti, the outgoing Competition Commissioner, he is the one who stopped, after all, General Electric from merging with Honeywell. Some of his decisions have been overturned in the courts. There have been some very high profile European cases. So of course Microsoft would not appeal if they did not think that they could get this lowered.

But it's because the Department of Justice's decision with Microsoft in or in 2001 that many of these cases are now coming to Europe. They feel that the U.S. has not -- the competitors of Microsoft feel the U.S. has not stopped Microsoft from abusing its position, so therefore, it's come to Europe hoping for a stronger ruling, which it seems to have gotten today.

COSTELLO: Seems so, and that fine could be up to $613 million to Microsoft. Jim Boulden, live from Brussels this morning, many thanks to you.

We'll be back with much more on DAYBREAK. You stay right there.

(COMMERCIAL BREAK)

COSTELLO: It is now 5:47 Eastern Time, time to take a quick look at the 'Top Stories.'

Former White House terrorism adviser Richard Clarke testifies before the 9/11 Commission today. His new book blasts President Bush's leadership in fighting terrorism.

A government report says the Medicare system will go broke in the year 2019 if no changes are made to the current system. That's 11 years sooner than previously thought.

And we now know why legendary singer Aretha Franklin is in the hospital. Her doctor says she had an allergic reaction to antibiotics, but she is getting better. The soul singer turns 62 tomorrow.

We update our 'Top Stories' every 15 minutes. The next update comes your way at 6:00 Eastern.

It seems everywhere you look food has gone low carb. From fast food to beer, companies are touting their reduced carb alternatives.

But as CNN medical correspondent Dr. Sanjay Gupta reports, not all carbs are bad.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): Low carb doesn't mean good carb nor does it mean you are going to lose weight.

DR. STOART TRAGER, ATKINS PHYSICIANS COUNCIL: Clearly good carbohydrates are the ones most slowly digested, the vegetables that are full of .

GUPTA: No surprise, good carbs are in fruit and vegetables. They might be high in sugar but worth it, say low carb supporters because they are packed with nutrients. As far as bad carbs, yes, that piece of white bread has more bad carbs than wheat bread, as do most processed foods. So, what makes it so bad?

See, it is not so much the carbs or even the sugar but insulin which is the problem. Eat more than your body needs and your sugar goings up and dries up your insulin, storing those calories into fat. No question we are a low carb crazy country right now, and everyone it seems everyone is going on a high protein diet. But the real reason they work might be because they are eating fewer calories. Bottom line, both diets, low carbs or not probably have the same success rates. What counts in the end is calories. It might just be that high fat, high protein make you full quicker and you eat less. Eating less and losing more. Hmm, go figure.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Nothing like common sense, is there?

We have got stories making 'Front Page' news from across the country straight ahead. And gas prices are on the move and the upward trend could put you in an even -- put you at an even bigger pinch at the pump. In the next hour of DAYBREAK, we'll talk with Montel Williams from the AAA to tell us why gas prices are going so high.

But first, the Princess of Pop puts in a stellar performance to a sold out crowd down south. We'll give you a peek. You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: Time to take a look at papers across America. And boy, we have some good ones this morning -- Chad.

MYERS: All right.

COSTELLO: You ready?

MYERS: I am ready.

COSTELLO: This is from "The Annistan Star" out of Alabama. So 18,000 neighbors get together to sue a company for poisoning their property and affecting their health, they win a $300 million settlement.

MYERS: Wow!

COSTELLO: And guess what? Each neighbor gets $7,000. How much do the lawyers get apiece?

MYERS: Ouch!

COSTELLO: Four million. So the people whose health was affected get $4,000, but each lawyer gets $4 million.

MYERS: Four million.

COSTELLO: Neighbors are mad.

MYERS: I suppose. I can understand that.

COSTELLO: This is -- yes. This is from the Philadelphia "Daily News." You see O.T. overload. Apparently the cash strapped city of Philadelphia is paying a lot of overtime.

MYERS: Sure.

COSTELLO: They are called the overtime kings. Listen to this. Most of them are police officers, sheriff's deputies and corrections officers. A corrections officer, John Thahu (ph), makes $106,210 a year. Only $38,000 of that is his base salary.

MYERS: Wow!

COSTELLO: He has made $68,000 in overtime. He's the guy on the cover you see there. He's the overtime king. I think there is a problem in Philadelphia.

MYERS: Need to hire some people.

COSTELLO: Yes, exactly or put...

MYERS: Hello, what part of that don't I understand?

COSTELLO: They must be making double and triple time overtime, though. Who knows?

Crystal Beach, this is from "The Enterprise," "The Beaumont Enterprise" out of Texas.

MYERS: Yes.

COSTELLO: Have you ever been to Crystal Beach -- Chad?

MYERS: I don't think so. I mean I've been to North Padre. I love that part, but that's up by Corpus Christi in Porta Rancis (ph), but I don't think so.

COSTELLO: Well evidently it's become a spring break haven for thousands of college students. It got so bad, 7,000 students on this beach, Chad. They had to close down the beach. And all that's left is that man with the metal detector. Neighbors are mad there, too.

MYERS: Probably up by Port Arthur. At Beaumont, Port Arthur, I assume. I'll take a look. I'll look at a map. That's what we have a lot of up here, maps, Carol.

(WEATHER REPORT)

COSTELLO: You want to hear some different kind of sounds?

MYERS: Go ahead.

COSTELLO: Britney Spears. There she is. She was right here in Georgia -- Chad.

MYERS: I was watching the local news here, and the traffic in Atlanta yesterday to get down here to this concert was unbelievable.

COSTELLO: Well you know our producer, our fine producers and writers come in overnight. So they got caught in the traffic you are talking about. And they saw Britney's fans, who actually are still 13 years old, although they dress like they are 26. So Britney still popular.

MYERS: Might have went to that concert.

COSTELLO: Thank you -- Chad.

MYERS: You're welcome. Too young.

COSTELLO: In the next hour of DAYBREAK, on the defensive. Heavy hitters from two administrations gear up for round two as the 9/11 Commission digs in.

(COMMERCIAL BREAK)

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Aired March 24, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you. Welcome to the second half hour of DAYBREAK. It is Wednesday, March 24. From the CNN Global Headquarters in Atlanta, I'm Carol Costello. Thank you for waking up with us.
Former White House terrorism adviser Richard Clarke appears before the 9/11 Commission today. Clarke's new book is highly critical of President Bush's leadership.

Kobe Bryant will face his accuser today. She testifies in a closed preliminary hearing. The judge is trying to decide if the woman's sexual history is relevant in the rape case against Bryant.

More than a dozen world leaders are in Madrid this morning. They will attend a memorial service for the 190 people killed in the terror attacks in Spain. The service gets under way in just about 30 minutes.

And today marks the fifth anniversary of NATO's bombing campaign in Kosovo. It was started to stop the violence against ethnic Albanians in Serbia. At least 30 people have been killed in renewed clashes between the groups.

We update our 'Top Stories' every 15 minutes. The next update comes your way at 5:45 Eastern.

The clock is ticking. The scheduled handover of control to Iraq by the U.S.-led coalition is 100 days away, June 30.

Our Jim Clancy live in Baghdad now to tell us more.

Jim, what's going on there today?

JIM CLANCY, CNN CORRESPONDENT: Well, Carol, that's right, 100 days from now the Iraqis will have sovereignty, once again, over their country. And the U.S. administrator, the head of the coalition provisional authority, Ambassador Paul Bremer, is going to be talking with local officials, giving a speech, a major speech. And let's be clear here, this is a speech that's going to be aimed not just at these local officials, but a much broader audience both inside Iraq and outside.

In it the ambassador is not only going to recount what has been accomplished, but he is going to lay out the things that Iraqis, the coalition members and others in the international community, have to do in the coming 100 days to make this work. It's going to be an important speech. Already there is some acknowledgements that in terms of security the Iraqis may not quite be ready. But he says the U.S. military is still going to be standing by to assist in that job. And the situation will look pretty much the same as it does on the -- on June the 29th or June the 30th as it will on July the 1st. So that's the situation here. We're expecting that speech about three hours from now.

Talking about security, let's look at the situation in Fallujah. Two U.S. Marines reported wounded, a roadside bomb exploded and they returned fire. There are reports that many Iraqis were killed. One report says as many as six, others are saying only two were killed, others were wounded. The details of that, obviously, still being sorted out. Just more evidence of the pressure that the U.S. military is under here as it continues. So we're continuing to follow that.

And of course looking for the political developments that are going to be coming from the U.S. ambassador just a little bit later from now -- Carol.

COSTELLO: Busy day for you. Jim Clancy live from Baghdad.

In the ever-escalating Israeli-Palestinian conflict, the new leader of Hamas is a marked man, because Israel vows to kill the entire Hamas leadership.

Our senior international editor David Clinch joins us now with what this may mean for the region and even the world.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Hey, Carol.

Yes, well, Hamas has a new leader, at least in Gaza, for the temporarily or interim leader, although he may very well end up being the long-term leader, if he has a long term. This man Rantisi is at least as radical as Sheikh Yassin, the man Israel killed. And Israel has made it absolutely clear, as you say, that he is a marked man.

We are interested in talking to Rantisi to find out exactly what it is that he is going to do with this borrowed time that Israel is giving him. Of course the danger inherent in that, if we sit down to interview him, we expose ourselves to the danger that he could be hit by the Israelis at any time. These are real questions that we have to ask ourselves when we go about our business in Gaza, we're talking to these Hamas leaders, they are targets. That's made absolutely clear by Israel. We have to take that into account.

COSTELLO: Well, and some of the interesting things you may get out of this man. I mean Hamas is now threatening the United States.

CLINCH: Right. We looked into that yesterday. And interestingly, after we spoke about that yesterday morning, the U.S. having sort of mentioned that they were taking it seriously the day before, went beyond that and issued a specific statement yesterday saying that all Americans should leave Gaza. Now I can't imagine there are too many Americans in Gaza, but there are presumably some. Those people have been warned. And also beyond that, U.S. targets throughout the region taking that very seriously. We have had a report today from the United Arab Emirates that the U.S. embassy there has shut down, at least temporarily. Not clear whether that's specifically related to that Hamas threat. Of course the fear on that is that whether Hamas does anything or not, that other terrorist organizations may take Yassin's killing as an incentive or an inspiration for attacks on U.S. targets anywhere.

COSTELLO: Well there were protests even inside Iraq over Yassin's killing yesterday.

CLINCH: Right, which turned violent. And there -- we have seen and heard of demonstrations in Bahrain and elsewhere today which have turned violent. Again, the problem now emerging for the U.S. is that the distinction between what Israel does and what the U.S. does is being eliminated for many people on the ground there. They see Israel and the U.S. as the same.

COSTELLO: Well I think it's been that way for quite some time.

CLINCH: Yes, and probably not to change in the near future.

A couple of other stories we're looking at today, one in Mexico. We've got a few British cave explorers. They are called spelunkers I believe is the technical term for these people. It's a British military expedition caught in some caves in Mexico. We have sent a correspondent down from Mexico City to look into this. Just what we are hearing is that they are deep inside the caves and that floodwaters have risen so high that they can't get out.

COSTELLO: Well didn't I hear somewhere that they don't want to be rescued?

CLINCH: Well apparently the first communication from them was you know this happens all the time in caves, not that big of a deal, we'll get out eventually when the water comes down. But the rain -- I mean weather factors in here. It's apparently pouring with rain. So they may change their attitude over the next few hours if the rain keeps -- the water keeps getting higher.

COSTELLO: And they are scientists. I mean they are there -- aren't they, not just spelunkers, but aren't they scientists as well?

CLINCH: They are -- they are British military scientists. It's not clear exactly what they were doing there, but presumably this is what they do for a living or for their pastime. Although one thing is still under question whether they had official permission to be in these caves at this time. So we're looking into that as well.

COSTELLO: OK. Anything else?

CLINCH: Well a few other things. We're just hearing Microsoft is up against a big fine by the European Union today.

COSTELLO: Six hundred fourteen million dollars. CLINCH: Six hundred fourteen million dollars, apparently, is the fine. They say they will -- Microsoft say they will appeal. This is for them bunching a whole thing -- a bunch of Microsoft things together. EU says they can't do that, big fine.

COSTELLO: OK. David Clinch, many thanks to you.

CLINCH: OK.

COSTELLO: Here is a rundown of the witnesses at today's 9/11 Commission hearing, just so you know. George Tenet, CIA chief under both the Clinton and Bush administrations, will kick off the testimony. He will be followed by Clinton's National Security Adviser Sandy Berger, and then we'll hear from former counterterrorism chief Richard Clarke. Finally, Deputy Secretary of State Richard Armitage will testify before the committee. We will have live hourly coverage of today's commission hearing starting at 9:00 a.m. Eastern.

Are the words "under God" constitutional -- unconstitutional in the Pledge of Allegiance? That is the issue before the Supreme Court today.

Bob Franken has more for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): It's part of the pledge school children obediently recite every day.

UNIDENTIFIED MALE: One nation under God.

FRANKEN: While few ponder the significance of the slogan in God we trust on their money, is this...

UNIDENTIFIED FEMALE: Under God, indivisible.

FRANKEN: ... simple ceremony, or as an appeals court held, an unconstitutional endorsement of religion?

MICHAEL NEWDOW, ATHEIST: That old Pledge of Allegiance.

FRANKEN: Michael Newdow is an avowed atheist, who, in an usual move, is being allowed to argue his case himself that the words "under God" violate his and his daughter's First Amendment rights to be free from religion.

NEWDOW: As I have the right to be able to have my child in public school without her being inculcated with religious belief. You know this is supposed to be a public school. It's supposed to be religion free.

FRANKEN: The case coming so soon after 9/11 created a political uproar. One friend of the court brief calls "under God," inserted during the 1950s Cold War, "part of an American tapestry of patriotic and historical references." JAY SEKULOW, AMERICAN CENTER FOR LAW AND JUSTICE: Faith and America have a causal connection. There is a relationship between what our founding fathers thought about the values of human dignity and where that worth derives from different than any other country.

FRANKEN: Ann, the child's mother, says she has no objections to her daughter saying "under God."

(on camera): In addition, it is not clear the father, Newdow, had custody when he filed the lawsuit. So the key question might be does he have the right to bring the case at all?

Bob Franken, CNN, the Supreme Court.

(END VIDEOTAPE)

COSTELLO: Michael Newdow will be a guest on CNN's "PAULA ZAHN NOW." That airs tonight at 8:00 Eastern.

Let's head to the Forecast Center and check in with Chad right now.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: I'm just checking out Microsoft, because the verdict just came down in Brussels. You know we've been talking about that. We were talking about that earlier this morning.

Well the European Union has declared Microsoft guilty of abusing its near monopoly with a fine of up to $613 million. Microsoft, I believe, has two months to file a promised appeal and to be sure it will. And under this order that the -- under the EU's order, I should say, Microsoft will be allowed to continue selling a version of Windows with its media player software installed. But it must refrain from any commercial, technological or contractual terms that would make the stripped down version of Windows less attractive or performing. It says Microsoft has a monopoly on stuff out there, so the European Union has declared Microsoft guilty and could be fined up to $613 million.

We'll have more from Jim Boulden in Brussels a little later on DAYBREAK.

Now to news that could affect your health. The Food and Drug Administration has approved the first generic versions of the controversial painkiller Oxycontin. That means cancer patients and others suffering from painful illnesses will be able to pay much less for the drug. The narcotic can be lethal if chewed, snorted or injected.

Asthma suffers beware, researchers have found that an ingredient used in inhalers may counteract the benefits of other asthma drugs. Experts say that may explain why some patients who use the inhalers actually get worse over time.

And you know you are never too old to start eating right. A study in mice shows that a low calorie diet can help increase life span, regardless of when the dietary change takes place.

OK, we have Jim Boulden live from Brussels on the Microsoft (UNINTELLIGIBLE).

And, Jim, this probably has Microsoft reeling?

JIM BOULDEN, CNN CORRESPONDENT: Yes. It's not a surprise, though. The commission had to meet this morning and formalize this decision. The decision has been known for some time. Microsoft has already said that it will appeal.

Now the important thing here is Microsoft has two months to look at the decision. We're told it runs in hundreds and hundreds of pages. Two months from now it will then come back with its decision on what it wants to do and tell the -- tell the commission that. And then the appeals process begins. The European Court of Justice will hear about this. Could take up to a year before a judge hears this.

The key is does Microsoft have to stop doing these practices during the appeal? If it does not, then nothing changes. Microsoft will continue to bundle its media player in its operating system and it won't have to pay the fine. Some people say that could take three to five years for a final decision.

If Microsoft is told to stop doing this, then it will have to start to offer an operating system without media player. And that's because RealNetworks and Apple want people to have more choice when it comes to how to download music on a PC, how to listen to clips and one day to take down films and to watch films over their PC -- Carol.

COSTELLO: Again, a similar thing happened to Microsoft here in the United States. Microsoft appealed and was successful. What do you think might happen on the appeal in Europe?

BOULDEN: Well we talked to the RealNetworks lawyer yesterday. Of course RealNetworks brought this case to the European Commission. And he says that because it was unanimous within European Commission, because it's such a strong worded decision coming from the European Union to say that Microsoft is abusing its dominance with its operating system, he felt -- of course he said as he felt that no judge would overturn that ruling. However, the European Commission has had many of its decisions overturned.

Mario Monti, the outgoing Competition Commissioner, he is the one who stopped, after all, General Electric from merging with Honeywell. Some of his decisions have been overturned in the courts. There have been some very high profile European cases. So of course Microsoft would not appeal if they did not think that they could get this lowered.

But it's because the Department of Justice's decision with Microsoft in or in 2001 that many of these cases are now coming to Europe. They feel that the U.S. has not -- the competitors of Microsoft feel the U.S. has not stopped Microsoft from abusing its position, so therefore, it's come to Europe hoping for a stronger ruling, which it seems to have gotten today.

COSTELLO: Seems so, and that fine could be up to $613 million to Microsoft. Jim Boulden, live from Brussels this morning, many thanks to you.

We'll be back with much more on DAYBREAK. You stay right there.

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COSTELLO: It is now 5:47 Eastern Time, time to take a quick look at the 'Top Stories.'

Former White House terrorism adviser Richard Clarke testifies before the 9/11 Commission today. His new book blasts President Bush's leadership in fighting terrorism.

A government report says the Medicare system will go broke in the year 2019 if no changes are made to the current system. That's 11 years sooner than previously thought.

And we now know why legendary singer Aretha Franklin is in the hospital. Her doctor says she had an allergic reaction to antibiotics, but she is getting better. The soul singer turns 62 tomorrow.

We update our 'Top Stories' every 15 minutes. The next update comes your way at 6:00 Eastern.

It seems everywhere you look food has gone low carb. From fast food to beer, companies are touting their reduced carb alternatives.

But as CNN medical correspondent Dr. Sanjay Gupta reports, not all carbs are bad.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): Low carb doesn't mean good carb nor does it mean you are going to lose weight.

DR. STOART TRAGER, ATKINS PHYSICIANS COUNCIL: Clearly good carbohydrates are the ones most slowly digested, the vegetables that are full of .

GUPTA: No surprise, good carbs are in fruit and vegetables. They might be high in sugar but worth it, say low carb supporters because they are packed with nutrients. As far as bad carbs, yes, that piece of white bread has more bad carbs than wheat bread, as do most processed foods. So, what makes it so bad?

See, it is not so much the carbs or even the sugar but insulin which is the problem. Eat more than your body needs and your sugar goings up and dries up your insulin, storing those calories into fat. No question we are a low carb crazy country right now, and everyone it seems everyone is going on a high protein diet. But the real reason they work might be because they are eating fewer calories. Bottom line, both diets, low carbs or not probably have the same success rates. What counts in the end is calories. It might just be that high fat, high protein make you full quicker and you eat less. Eating less and losing more. Hmm, go figure.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: Nothing like common sense, is there?

We have got stories making 'Front Page' news from across the country straight ahead. And gas prices are on the move and the upward trend could put you in an even -- put you at an even bigger pinch at the pump. In the next hour of DAYBREAK, we'll talk with Montel Williams from the AAA to tell us why gas prices are going so high.

But first, the Princess of Pop puts in a stellar performance to a sold out crowd down south. We'll give you a peek. You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: Time to take a look at papers across America. And boy, we have some good ones this morning -- Chad.

MYERS: All right.

COSTELLO: You ready?

MYERS: I am ready.

COSTELLO: This is from "The Annistan Star" out of Alabama. So 18,000 neighbors get together to sue a company for poisoning their property and affecting their health, they win a $300 million settlement.

MYERS: Wow!

COSTELLO: And guess what? Each neighbor gets $7,000. How much do the lawyers get apiece?

MYERS: Ouch!

COSTELLO: Four million. So the people whose health was affected get $4,000, but each lawyer gets $4 million.

MYERS: Four million.

COSTELLO: Neighbors are mad.

MYERS: I suppose. I can understand that.

COSTELLO: This is -- yes. This is from the Philadelphia "Daily News." You see O.T. overload. Apparently the cash strapped city of Philadelphia is paying a lot of overtime.

MYERS: Sure.

COSTELLO: They are called the overtime kings. Listen to this. Most of them are police officers, sheriff's deputies and corrections officers. A corrections officer, John Thahu (ph), makes $106,210 a year. Only $38,000 of that is his base salary.

MYERS: Wow!

COSTELLO: He has made $68,000 in overtime. He's the guy on the cover you see there. He's the overtime king. I think there is a problem in Philadelphia.

MYERS: Need to hire some people.

COSTELLO: Yes, exactly or put...

MYERS: Hello, what part of that don't I understand?

COSTELLO: They must be making double and triple time overtime, though. Who knows?

Crystal Beach, this is from "The Enterprise," "The Beaumont Enterprise" out of Texas.

MYERS: Yes.

COSTELLO: Have you ever been to Crystal Beach -- Chad?

MYERS: I don't think so. I mean I've been to North Padre. I love that part, but that's up by Corpus Christi in Porta Rancis (ph), but I don't think so.

COSTELLO: Well evidently it's become a spring break haven for thousands of college students. It got so bad, 7,000 students on this beach, Chad. They had to close down the beach. And all that's left is that man with the metal detector. Neighbors are mad there, too.

MYERS: Probably up by Port Arthur. At Beaumont, Port Arthur, I assume. I'll take a look. I'll look at a map. That's what we have a lot of up here, maps, Carol.

(WEATHER REPORT)

COSTELLO: You want to hear some different kind of sounds?

MYERS: Go ahead.

COSTELLO: Britney Spears. There she is. She was right here in Georgia -- Chad.

MYERS: I was watching the local news here, and the traffic in Atlanta yesterday to get down here to this concert was unbelievable.

COSTELLO: Well you know our producer, our fine producers and writers come in overnight. So they got caught in the traffic you are talking about. And they saw Britney's fans, who actually are still 13 years old, although they dress like they are 26. So Britney still popular.

MYERS: Might have went to that concert.

COSTELLO: Thank you -- Chad.

MYERS: You're welcome. Too young.

COSTELLO: In the next hour of DAYBREAK, on the defensive. Heavy hitters from two administrations gear up for round two as the 9/11 Commission digs in.

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