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CNN Live At Daybreak
A Day of Deadly Violence Again in Iraq
Aired April 07, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A day of deadly violence again in Iraq.
And good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Wednesday, April 7.
I'm Carol Costello.
Here are the headlines at this hour.
First of all, we want to take you live to Baghdad. We are awaiting a news conference from General Mark Kimmitt. Hopefully he will bring us up to date on all that's been happening in Iraq, and there has been a lot happening in that country. Right now you see the reporters getting ready for that news conference.
It has been one of the deadliest days for U.S. troops in Iraq. As many as 12 Marines were killed by insurgents in the corm, west of Baghdad.
The Senate Foreign Relations Committee today looks into the U.N.'s Oil For Food Program. The program was designed to help Iraq, but billions of dollars may have been skimmed by U.N. officials.
An Amtrak passenger train has derailed in Mississippi. One person is dead and about three dozen are hurt. At least three people are in critical condition this morning.
A victory for the U. Conn. women brings a first for the NCAA Division One basketball. Connecticut is the first school to win the men's and the women's basketball championships in the same year.
To the forecast center now and Chad -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
Congratulations to those folks up there.
Congratulations to Tennessee, as well. They had a great season.
(WEATHER REPORT)
MYERS: Carol, back to you.
COSTELLO: All right, thank you, Chad. These are among the deadliest days of the war in Iraq. As many as 30 U.S. troops have been killed in three days of fighting across several cities. The most vicious street to street battles have been taking place in Ramadi. Up to 12 Marines were killed in an attack by former Baathist Party members.
Nearby Falluja also a war zone this morning. Marines there are fighting pitched battles with Sunni insurgents. Doctors say at least 36 Iraqi civilians have been killed.
Defense Secretary Donald Rumsfeld says if commanders on the ground ask for more troops, they will be sent. About 135,000 U.S. troops are in Iraq right now.
And radical Shiite cleric Muqtada al-Sadr is one of the main enemies of the U.S. now. He says he's willing to die resisting any attempt to capture him. Al-Sadr has taken refuge in the Imam Ali Mosque in Najaf, one of Shia Islam's holiest shrines.
Let's take you now live to Iraq for the latest on the deadly violence and the political turmoil there.
Jim Clancy live in Baghdad this morning -- Jim, bring us up to date.
JIM CLANCY, CNN CORRESPONDENT: Well, Carol, you know, we have been hearing from U.S. officials and Iraqis themselves that things were going to get worse before they got better. Iraqis woke up Wednesday and sure enough, things were worse, a lot worse.
Let's focus just on Falluja and Ramadi. This is where U.S. Marines have been engaged in heavy fighting over the last 24 hours.
First to Ramadi. That's a town west of Baghdad. It is another Sunni town in that so-called Sunni Triangle, a hotbed of resistance to the occupation from day one here after the U.S. invaded.
Now, overnight, a large number of insurgents attacked U.S. Marine positions. Their goal, perhaps, to take over the governor's residence, the governor's headquarters there in Ramadi. They failed to do that. But in the process, 11 Marines were killed in the fighting. One died later from his injuries. We have reports that 12 of the insurgents were killed. An unknown number of them were wounded. An Abrams tank and a Bradley fighting vehicle were badly damaged in the process.
Carol, this was seven hours of intense fighting between U.S. Marines and those insurgents there.
Now, moving on to Falluja. This is where Marines have encircled the town. Last night they went into it before nightfall. They drove into it. Now we understand they have pulled back to positions that they are holding right now. Two Marines reported wounded in the fighting there as a result of their M1-A1 Abrams tank coming under fire from rocket propelled grenades. Overnight, we're getting reports of fierce fighting, houses destroyed as the U.S. military tried to take out rooftop sniper positions.
This is the message coming out of Falluja today from some of our sources. They say the mosques are broadcasting appeals for blood to treat the wounded. They say that the hospital there that was across the river has been a makeshift hospital, has been set up in the center of Falluja.
Fighting is going on. Helicopters hovering overhead in close support of the U.S. Marines that are fighting there. So, a situation on two fronts that's developing. That's a look at the one the Marines are facing this day.
COSTELLO: Jim, a question for you. First of all, I want to explain to the viewers what pictures they were seeing. Those pictures were from Al Jazeera Television and they were of Iraqi civilians who were injured in the fighting.
I wanted to ask you about the fierce fighting on the insurgents' part. This must have taken some planning. And doesn't it make you wonder about the U.S. intelligence?
CLANCY: Well, the U.S. has been fully aware that we're coming up to some anniversary dates when U.S. troops entered Baghdad. We're coming up to a major Shia Muslim holiday this weekend.
But certainly what you looked at in Ramadi, this kind of a ground assault on major targets is something that they don't try very often. Obviously, it takes a lot of planning. They may have been trying to take advantage of the fact that the Marines were very busy in Falluja. This is something the Marines had planned. They're tightening their grip there, moving slowly.
The insurgents, obviously, perhaps thinking that the Marines were looking the other way, decided to hit their positions in Ramadi, which isn't all that far away.
COSTELLO: As far as Sheikh al-Sadr, he's holed up and hiding somewhere in Najaf.
What is the U.S. planning to do and are there a series of meetings taking place right now to decide?
CLANCY: Well, I'm sure that this is something that's under consideration. I talked to top U.S. military officials who told me they consider him to be unstable. They even used the word schizophrenic. They believe that he's propped up by a group of supporters around him. Remember, his father is the real source of power here. He was executed by suspected assassins of Saddam Hussein back in 1999. He has a name. Many people can follow him.
But the truth of the matter is he is not old enough to command a lot of respect among the Shia majority in this country. And, number two, he is not charismatic in any way. It is just believed that he is being pushed forward by a group of people around him that want to build a power base there. He is in Najaf at his office. Certainly if U.S. troops went in to go in after him, he would immediately retreat inside one of the holiest shrines in all of Shia Islam, and that is the Imam Ali Mosque. It is just footsteps away from his office -- Carol.
COSTELLO: Jim Clancy reporting live from Baghdad this morning.
Let's put the deaths of those 12 Marines into some historical perspective now. Last May, President Bush declared that major combat in Iraq was over. Last November 15, 18 U.S. troops were killed. Seventeen of them died when two Black Hawk helicopters took enemy fire and crashed in Mosul and one died in a bombing attack in Baghdad.
And on November 2, 16 U.S. soldiers were killed when their Chinook helicopter was shot down near Falluja.
Now, President Bush says the violence and political instability in Iraq will not change his mind. He says he's still committed to handing over political power in Iraq on June 30. But, he is facing increasingly vocal critics, who say the situation is just too volatile and the deadline way too soon.
CNN national correspondent Bob Franken has more for you.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN CORRESPONDENT (voice-over): In 12 weeks, just 12 weeks, control of Iraq is scheduled to be handed to Iraqis. The problem is, the appearance at least that a good part of the country is out of control.
Nevertheless...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will pass sovereignty on June 30. We will stay the course in Iraq.
FRANKEN: The June 30 date was the result of painstaking negotiations with the Iraqi Governing Council, which insisted on a firm deadline. But time is growing short.
SEN. JOSEPH BIDEN (D-DW), FOREIGN RELATIONS COMMITTEE: What's the plan? Who is going to be in charge after that? Who is going to be the referee, in effect?
FRANKEN: The president's man in Baghdad says that the plan is a work in progress.
L. PAUL BREMER, U.S./IRAQ RECONSTRUCTION ADMINISTRATOR: We are determining the size and shape of the interim government. It will be in place well before June 30 and we will pass sovereignty to that interim government on June 30, as scheduled.
FRANKEN: And, as the U.S. defense secretary hastens to add, this sovereignty definitely has its limits.
DONALD RUMSFELD, SECRETARY OF DEFENSE: Our security forces, coalition forces are going to stay right there and do what they have to do.
FRANKEN: The timing is certainly politically sensitive.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: It is a mistake to set an arbitrary date and I hope that date has nothing to do with the election here in the United States.
FRANKEN: Actually, there is support for a date certain from a high ranking of the Clinton administration.
WILLIAM COHEN, FORMER DEFENSE SECRETARY: But by setting a date, it at least forces the parties to think very constructively of how they can put a governing authority together at the short-term, before they have elections by January of next year.
FRANKEN (on camera): A date, but will June 30 remain the date? Is it cast in concrete or is the situation in Iraq too unpredictably violent, too fluid for any concrete to really be set?
Bob Franken, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: As coalition forces try to pinpoint the source of ongoing attacks in Iraq, a new audiotape indicates Abu al-Zarqawi is responsible for a wave of attacks against U.S. and coalition forces. The audiotape is posted on a Middle Eastern Web site. Zarqawi is quoted as saying: "We tore up their bodies in various cities." Sources believe the tape is authentic.
We are covering the developments in Iraq from all angles. Just ahead on DAYBREAK, details on the most wanted man in Iraq -- Muqtada al-Sadr. We'll take you live to Baghdad for that.
Plus, celebrations and security this Easter. We're going to take you live to the Vatican and to Madrid, Spain, two places concerned about possible terrorist attacks.
And the faces of war -- a look at U.S. troops on the front lines in Iraq.
And for more on Iraq, including an interactive map and a complete photo gallery, visit our Web site at cnn.com.
It is now just one day away. National Security Advisor Condoleezza Rice testifies tomorrow before the 9/11 Commission. And another of President Bush's closest advisers sat down with Larry King to talk about Rice's outlook in the run up to the Iraq war.
Here's what Karen Hughes has to say.
(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")
KAREN HUGHES, BUSH ADVISER: I remember a conversation with Condoleezza Rice where she said, "Karen, this is going to be really hard," because she knew it would be difficult. She knew that some of the world might not agree with us. She knew that some people in our own country might not agree with us.
But I looked at her and I said, "But, Condi, is it right?"
And she said, "Absolutely."
(END VIDEO CLIP)
COSTELLO: And this is the place to see Condoleezza Rice's testimony before the 9/11 Commission. We've got your live coverage starting tomorrow at 9:00 a.m. Eastern.
A potentially toxic cloud in Kentucky tops our look at stories making news across America this Wednesday. Northbound lanes of I-75 remain closed this morning after a truck loaded with an industrial chemical collides with a car. Two people are killed. A fire after the crash burned for hours. Emergency officials say the chemical, sodium hydrosulfate, is poisonous if inhaled.
Residents of one Los Angeles suburb have said no to Wal-Mart. Voters in Inglewood rejected a ballot measure that would have allowed the retailer to build a giant super center store. Wal-Mart spent more than a million dollars trying to win the Inglewood vote.
A federal judge's ruling will allow a lawsuit over evolution to go to court. The suit seeks to stop an Atlanta area school district from putting disclaimer stickers in textbooks. The stickers say, "evolution is a theory, not a fact."
All passengers and crew have now been accounted for in the aftermath of a passenger train derailment in Mississippi. One person was killed after the Amtrak train jumped the tracks near Jackson.
We get more from Jeff Rent of our CNN affiliate WJTV.
(BEGIN VIDEOTAPE)
JEFF RENT, WJTV CORRESPONDENT (voice-over): Early Tuesday evening, the call comes in. An Amtrak train full of passengers has derailed by the big black river in Madison County. Emergency crews responded quickly.
UNIDENTIFIED MALE: There was five box cars down and there were maybe probably up to 100 people in there.
RENT: Crews worked hard to treat the injured.
Alvin Collins was on the train with his fiance when it derailed.
ALVIN COLLINS, CRASH SURVIVOR: And we hit something on the train track and the train just tipped it all over. It threw two old ladies on top of us and I caught my fiancee, or my wife. And we was actually on our way to Chicago for a wedding. So, I mean the train just tilted over and knocked all of us on the right side of the train.
RENT: Paula Turnidge's (ph) mother was also on the train and phoned her daughter shortly after the accident. PAULA TURNIDGE: She was on the train. She said she sat on the opposite side of the train landed on, so that she was OK. But she was just really shaken up.
(END VIDEOTAPE)
COSTELLO: That report from Jeff Rent of CNN affiliate WJTV in Jackson, Mississippi. Mississippi emergency officials believe the derailment is an accident. But the FBI has sent agents to the scene to investigate.
Airline passengers file suit on what they claim is a violation of their rights.
And remembering a time in Rwanda's history that most would rather forget.
And long-term care for seniors -- seeking alternatives to nursing homes? You will want to stick around for this report.
And a very unlucky woman who claims she was a winner, oh, she's now a big loser.
All that and much more just ahead on DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:17 Eastern.
Here's what's all new this morning.
It's been one of the deadliest days for U.S. troops in Iraq. At least 12 Marines have died fighting insurgents in Ramadi.
A wildfire that has burned west of Fort Collins, Colorado for the past week is now 95 percent contained. The blaze covered about 8,900 acres.
In money news, looking for a tax friendly state? Alaska, seen here, as well as New Hampshire and Delaware, get top honors. New York, the District of Columbia and Maine are the least friendly tax wise.
In sports, Barry Bonds went into Tuesday's game with 659 homers, just one short of tying his godfather's, Willie Mays, for the third place on the career home run list. And when the game ended, well, Bonds was still one short.
In culture, Los Vegas magician Siegfried Fischbacher -- well, you know him as Siegfried, don't you? He'll receive the Citizen of the Month award today on behalf of his partner Roy. Roy, as you know, is recovering from last October's tiger attack.
(WEATHER REPORT) COSTELLO: And those are the latest headlines.
The U.S. government has a list that's designed to keep terrorists from boarding airliners.
But as our Jeanne Meserve reports, a new lawsuit says the list is causing problems for hundreds of innocent travelers.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: (voice- over): Being in the U.S. Air Force doesn't help when Michelle Green tries to fly commercially. Because her name or one like it is on the government's no-fly list, when she goes to an airport, she is questioned, searched and delayed, sometimes to the point of missing flights.
MICHELLE GREEN, NO-FLY PLAINTIFF: I give them my orders. I give them my TDY orders. I give them my birth certificate. And I ask them each time if that could be the last time. Is there anything in the system that they can clear me? And they said that there is nothing.
MESERVE: Saying that hundreds if not thousands of other people are suffering significant embarrassment and humiliation, the American Civil Liberties Union is challenging the constitutionality of the no- fly list, which is intended to keep terrorists off of airplanes.
DAVID FATHI, ACLU ATTORNEY: I am not a hijacker. I am not a terrorist. And the government has no reason to put my name on a list of suspected terrorists.
MESERVE: The Transportation Security Administration will not comment on the lawsuit, but admits the no-fly list administered by individual airlines has ensnared innocent travelers.
MARK HATFIELD, TRANSPORTATION SECURITY ADMINISTRATION: We need to replace the system and get something that is designed for the times, that is designed to protect privacy and address individuals' needs, as well as providing a very needed layer of security.
MESERVE: Specifically, TSA proposes CAPPS-2. It would run passenger names through government and private databases and assign a color-coded risk classification. The ACLU says that could be worse.
JAY STANLEY, ACLU: It doesn't make sense to replace this flawed, deeply flawed program with a larger program that will catch innocent people in larger numbers than is already happening.
MESERVE (on camera): The government maintains CAPPS-2 would stop fewer people, not more, but because of objections from the ACLU and others it has not been able to test the system and no timetable for rolling it out has even been set.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE) COSTELLO: Turning now to the markets, the dollar is on the rise and nearing a four year high against the euro.
For that, though, let's head live to London to find out more, and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
Yes, the dollar is just under $1.21 against the euro this morning and sterling is up almost 184 against the greenback.
In terms of the main markets today, the FTSE is up a quarter of one percent here in London. And on the continent, both the DAX in Frankfurt and the CAC in Paris up about a half of one percent.
The futures market right now in the U.S. pointing to a slightly lower open. One of the weights there, Alcoa, the big aluminum producer, came in with its earnings after the bell last night. They were shy of what Wall Street was expecting and the stock fell more than a dollar in after hours trading.
And in the other side of the spectrum, Yahoo! will report after the bell tonight. The expectation there is $0.11 a share.
And finally, another look at Nokia, which got hammered yesterday on a sales warning, down 19 percent in New York trading. It's off another 1 1/4 percent this morning as several analysts have become more bearish on the stock -- Carol, have a great morning.
COSTELLO: Thank you. BENJAMIN: Back to you.
COSTELLO: You, too.
Thank you, Todd Benjamin.
She claimed to be a big winner. Now a Lotto loser has to pay the piper.
This is Wednesday on DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: In our DAYBREAK Eye-Opener this morning, there's good news about a pair of formerly conjoined Egyptian twins. Remember them? Nearly six months after their separation surgery, two and a half month old Mohamed and Ahmed Ibrahim have been discharged from a Dallas hospital. The boys, who wear special helmets to protect their fragile heads, return to the hospital for daily physical therapy and rehabilitation sessions, but they're doing A-OK.
Remember the Ohio woman who claimed to have bought and lost a winning lottery ticket worth $162 million? Well, Elecia Battle has been convicted of filing a false police report and she has been fined $1,000. She'll also perform 50 hours of community service and pay $5,500 in court costs. Now for an update on Gizmo. He's the one on the right. The Swanson, Texas City Council voted to allow the African servel cat to stay with his adopted family. The Council made an exception to their new law that bans wild and exotic animals from being kept as pets. So that's one happy family and one happy Gizmo.
MYERS: Oh, a nice little cat.
COSTELLO: Nice little cat.
We had some interesting e-mails, Chad, yesterday.
MYERS: Some not so nice ones, from what I can tell.
COSTELLO: Please, allow me to read this one.
MYERS: I'm ready.
COSTELLO: OK. This is...
MYERS: Did he leave his address?
COSTELLO: No, just K. Madison. I don't know where they're from, though. But he or she says: "It is difficult enough to expose the audience to the totally self-absorbed Carol Costello. Perhaps some get over yourself personality disorders would be in order. Fortunately, Bill Hemmer, Soledad O'Brien and other hosts do not suffer from this DAYBREAK shortcoming."
MYERS: Hmmm.
COSTELLO: Self-absorbed. Hmmm. My close-up, please. Self- absorbed.
MYERS: That's the wrong finger. I'm sorry.
COSTELLO: The FCC is watching.
MYERS: Oh, of course. I'm sorry.
COSTELLO: Self-absorbed? Of course I'm self-absorbed, I'm a television reporter.
On to e-mail number two. "I want to thank Neal Boortz. He actually does a service for John Kerry when Neal said that Ted Kennedy will hurt the Democrats' chances at winning the White House. Neal's indictments of being liberal make me very proud to be liberal and make me want to work even harder to change the administration currently in the White House.
MYERS: That's from Nanelle from North Carolina.
COSTELLO: Nanelle, thank you.
This -- man, I was getting blammed yesterday, wasn't I?: "Carol, I was offended by your interview of the two gentlemen supposedly representing opposing views. The liberal had an opinion you described as a twist, while you presented that you strongly agreed with the conservative."
MYERS: I've never heard that before out of you.
COSTELLO: Don't you know we at CNN are the liberal media?
MYERS: Remember, the weather guys and the sports guys are the conservative ones in a TV station, just so you know.
COSTELLO: No, I try to be fair all the way around.
MYERS: You do. You really do.
COSTELLO: I try really hard to be fair.
MYERS: You always try to be fair. And it doesn't really matter whether you're talking to a liberal or a conservative, you're always trying to take the other side, if there isn't another side presented there.
COSTELLO: I like to argue.
MYERS: So...
COSTELLO: True. OK. The last e-mail.
MYERS: Your fiance has that going for him.
COSTELLO: I know. He hates that about me, actually.
OK: "Where do you dig up these critics from? Most certainly what Kennedy said is totally correct. The rest of the world has been saying that for almost two months and predicted it since the beginning. And, yes, Bush lied. He knew differently."
That is from G.B. And, of course, they're commenting on Ted Kennedy's assertion that Iraq is becoming Bush's Vietnam.
MYERS: And also commenting on Neal. Neal said that it's not a lie unless you know it not to be true when you say it. So that's right.
COSTELLO: And for those of you who don't watch our six o'clock hour, Neal Boortz is our conservative debater...
MYERS: Libertarian.
COSTELLO: Libertarian conservative. And then we have Mike Malloy on the other side, and he is a liberal talk show host.
MYERS: Right.
COSTELLO: So, if you're not around for the 6:00 a.m. hour of DAYBREAK, you have to stick around next Tuesday, because it's pretty darned exciting. MYERS: Yes, I should tape it.
COSTELLO: Yes.
Here's what's all new in the next half hour of DAYBREAK.
Death before surrender -- radical Shiites warn of dire consequences if U.S. troops try to take a religious leader by force. We're going to take you back live to Baghdad.
Officials at the Vatican are stepping up security in anticipation of the Easter celebration. But is it enough?
And long-term care for the elderly -- it doesn't necessarily mean living in a nursing home. We'll look at some of the options and the cost involved.
You stay right there.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Nike and Addidas are names that typically come to mind when it comes to athletic wear. Yet by developing sportswear that keeps athletes dry when they exercise, Under Armour has the competition sweating. The company's captured over 60 percent of the market for athletic compression wear, with five year sales growth of 12,000 percent. Under Armour recently landed the number two spot on "Inc." Magazine's 500 list.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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Aired April 7, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A day of deadly violence again in Iraq.
And good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK for Wednesday, April 7.
I'm Carol Costello.
Here are the headlines at this hour.
First of all, we want to take you live to Baghdad. We are awaiting a news conference from General Mark Kimmitt. Hopefully he will bring us up to date on all that's been happening in Iraq, and there has been a lot happening in that country. Right now you see the reporters getting ready for that news conference.
It has been one of the deadliest days for U.S. troops in Iraq. As many as 12 Marines were killed by insurgents in the corm, west of Baghdad.
The Senate Foreign Relations Committee today looks into the U.N.'s Oil For Food Program. The program was designed to help Iraq, but billions of dollars may have been skimmed by U.N. officials.
An Amtrak passenger train has derailed in Mississippi. One person is dead and about three dozen are hurt. At least three people are in critical condition this morning.
A victory for the U. Conn. women brings a first for the NCAA Division One basketball. Connecticut is the first school to win the men's and the women's basketball championships in the same year.
To the forecast center now and Chad -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
Congratulations to those folks up there.
Congratulations to Tennessee, as well. They had a great season.
(WEATHER REPORT)
MYERS: Carol, back to you.
COSTELLO: All right, thank you, Chad. These are among the deadliest days of the war in Iraq. As many as 30 U.S. troops have been killed in three days of fighting across several cities. The most vicious street to street battles have been taking place in Ramadi. Up to 12 Marines were killed in an attack by former Baathist Party members.
Nearby Falluja also a war zone this morning. Marines there are fighting pitched battles with Sunni insurgents. Doctors say at least 36 Iraqi civilians have been killed.
Defense Secretary Donald Rumsfeld says if commanders on the ground ask for more troops, they will be sent. About 135,000 U.S. troops are in Iraq right now.
And radical Shiite cleric Muqtada al-Sadr is one of the main enemies of the U.S. now. He says he's willing to die resisting any attempt to capture him. Al-Sadr has taken refuge in the Imam Ali Mosque in Najaf, one of Shia Islam's holiest shrines.
Let's take you now live to Iraq for the latest on the deadly violence and the political turmoil there.
Jim Clancy live in Baghdad this morning -- Jim, bring us up to date.
JIM CLANCY, CNN CORRESPONDENT: Well, Carol, you know, we have been hearing from U.S. officials and Iraqis themselves that things were going to get worse before they got better. Iraqis woke up Wednesday and sure enough, things were worse, a lot worse.
Let's focus just on Falluja and Ramadi. This is where U.S. Marines have been engaged in heavy fighting over the last 24 hours.
First to Ramadi. That's a town west of Baghdad. It is another Sunni town in that so-called Sunni Triangle, a hotbed of resistance to the occupation from day one here after the U.S. invaded.
Now, overnight, a large number of insurgents attacked U.S. Marine positions. Their goal, perhaps, to take over the governor's residence, the governor's headquarters there in Ramadi. They failed to do that. But in the process, 11 Marines were killed in the fighting. One died later from his injuries. We have reports that 12 of the insurgents were killed. An unknown number of them were wounded. An Abrams tank and a Bradley fighting vehicle were badly damaged in the process.
Carol, this was seven hours of intense fighting between U.S. Marines and those insurgents there.
Now, moving on to Falluja. This is where Marines have encircled the town. Last night they went into it before nightfall. They drove into it. Now we understand they have pulled back to positions that they are holding right now. Two Marines reported wounded in the fighting there as a result of their M1-A1 Abrams tank coming under fire from rocket propelled grenades. Overnight, we're getting reports of fierce fighting, houses destroyed as the U.S. military tried to take out rooftop sniper positions.
This is the message coming out of Falluja today from some of our sources. They say the mosques are broadcasting appeals for blood to treat the wounded. They say that the hospital there that was across the river has been a makeshift hospital, has been set up in the center of Falluja.
Fighting is going on. Helicopters hovering overhead in close support of the U.S. Marines that are fighting there. So, a situation on two fronts that's developing. That's a look at the one the Marines are facing this day.
COSTELLO: Jim, a question for you. First of all, I want to explain to the viewers what pictures they were seeing. Those pictures were from Al Jazeera Television and they were of Iraqi civilians who were injured in the fighting.
I wanted to ask you about the fierce fighting on the insurgents' part. This must have taken some planning. And doesn't it make you wonder about the U.S. intelligence?
CLANCY: Well, the U.S. has been fully aware that we're coming up to some anniversary dates when U.S. troops entered Baghdad. We're coming up to a major Shia Muslim holiday this weekend.
But certainly what you looked at in Ramadi, this kind of a ground assault on major targets is something that they don't try very often. Obviously, it takes a lot of planning. They may have been trying to take advantage of the fact that the Marines were very busy in Falluja. This is something the Marines had planned. They're tightening their grip there, moving slowly.
The insurgents, obviously, perhaps thinking that the Marines were looking the other way, decided to hit their positions in Ramadi, which isn't all that far away.
COSTELLO: As far as Sheikh al-Sadr, he's holed up and hiding somewhere in Najaf.
What is the U.S. planning to do and are there a series of meetings taking place right now to decide?
CLANCY: Well, I'm sure that this is something that's under consideration. I talked to top U.S. military officials who told me they consider him to be unstable. They even used the word schizophrenic. They believe that he's propped up by a group of supporters around him. Remember, his father is the real source of power here. He was executed by suspected assassins of Saddam Hussein back in 1999. He has a name. Many people can follow him.
But the truth of the matter is he is not old enough to command a lot of respect among the Shia majority in this country. And, number two, he is not charismatic in any way. It is just believed that he is being pushed forward by a group of people around him that want to build a power base there. He is in Najaf at his office. Certainly if U.S. troops went in to go in after him, he would immediately retreat inside one of the holiest shrines in all of Shia Islam, and that is the Imam Ali Mosque. It is just footsteps away from his office -- Carol.
COSTELLO: Jim Clancy reporting live from Baghdad this morning.
Let's put the deaths of those 12 Marines into some historical perspective now. Last May, President Bush declared that major combat in Iraq was over. Last November 15, 18 U.S. troops were killed. Seventeen of them died when two Black Hawk helicopters took enemy fire and crashed in Mosul and one died in a bombing attack in Baghdad.
And on November 2, 16 U.S. soldiers were killed when their Chinook helicopter was shot down near Falluja.
Now, President Bush says the violence and political instability in Iraq will not change his mind. He says he's still committed to handing over political power in Iraq on June 30. But, he is facing increasingly vocal critics, who say the situation is just too volatile and the deadline way too soon.
CNN national correspondent Bob Franken has more for you.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN CORRESPONDENT (voice-over): In 12 weeks, just 12 weeks, control of Iraq is scheduled to be handed to Iraqis. The problem is, the appearance at least that a good part of the country is out of control.
Nevertheless...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will pass sovereignty on June 30. We will stay the course in Iraq.
FRANKEN: The June 30 date was the result of painstaking negotiations with the Iraqi Governing Council, which insisted on a firm deadline. But time is growing short.
SEN. JOSEPH BIDEN (D-DW), FOREIGN RELATIONS COMMITTEE: What's the plan? Who is going to be in charge after that? Who is going to be the referee, in effect?
FRANKEN: The president's man in Baghdad says that the plan is a work in progress.
L. PAUL BREMER, U.S./IRAQ RECONSTRUCTION ADMINISTRATOR: We are determining the size and shape of the interim government. It will be in place well before June 30 and we will pass sovereignty to that interim government on June 30, as scheduled.
FRANKEN: And, as the U.S. defense secretary hastens to add, this sovereignty definitely has its limits.
DONALD RUMSFELD, SECRETARY OF DEFENSE: Our security forces, coalition forces are going to stay right there and do what they have to do.
FRANKEN: The timing is certainly politically sensitive.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: It is a mistake to set an arbitrary date and I hope that date has nothing to do with the election here in the United States.
FRANKEN: Actually, there is support for a date certain from a high ranking of the Clinton administration.
WILLIAM COHEN, FORMER DEFENSE SECRETARY: But by setting a date, it at least forces the parties to think very constructively of how they can put a governing authority together at the short-term, before they have elections by January of next year.
FRANKEN (on camera): A date, but will June 30 remain the date? Is it cast in concrete or is the situation in Iraq too unpredictably violent, too fluid for any concrete to really be set?
Bob Franken, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: As coalition forces try to pinpoint the source of ongoing attacks in Iraq, a new audiotape indicates Abu al-Zarqawi is responsible for a wave of attacks against U.S. and coalition forces. The audiotape is posted on a Middle Eastern Web site. Zarqawi is quoted as saying: "We tore up their bodies in various cities." Sources believe the tape is authentic.
We are covering the developments in Iraq from all angles. Just ahead on DAYBREAK, details on the most wanted man in Iraq -- Muqtada al-Sadr. We'll take you live to Baghdad for that.
Plus, celebrations and security this Easter. We're going to take you live to the Vatican and to Madrid, Spain, two places concerned about possible terrorist attacks.
And the faces of war -- a look at U.S. troops on the front lines in Iraq.
And for more on Iraq, including an interactive map and a complete photo gallery, visit our Web site at cnn.com.
It is now just one day away. National Security Advisor Condoleezza Rice testifies tomorrow before the 9/11 Commission. And another of President Bush's closest advisers sat down with Larry King to talk about Rice's outlook in the run up to the Iraq war.
Here's what Karen Hughes has to say.
(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")
KAREN HUGHES, BUSH ADVISER: I remember a conversation with Condoleezza Rice where she said, "Karen, this is going to be really hard," because she knew it would be difficult. She knew that some of the world might not agree with us. She knew that some people in our own country might not agree with us.
But I looked at her and I said, "But, Condi, is it right?"
And she said, "Absolutely."
(END VIDEO CLIP)
COSTELLO: And this is the place to see Condoleezza Rice's testimony before the 9/11 Commission. We've got your live coverage starting tomorrow at 9:00 a.m. Eastern.
A potentially toxic cloud in Kentucky tops our look at stories making news across America this Wednesday. Northbound lanes of I-75 remain closed this morning after a truck loaded with an industrial chemical collides with a car. Two people are killed. A fire after the crash burned for hours. Emergency officials say the chemical, sodium hydrosulfate, is poisonous if inhaled.
Residents of one Los Angeles suburb have said no to Wal-Mart. Voters in Inglewood rejected a ballot measure that would have allowed the retailer to build a giant super center store. Wal-Mart spent more than a million dollars trying to win the Inglewood vote.
A federal judge's ruling will allow a lawsuit over evolution to go to court. The suit seeks to stop an Atlanta area school district from putting disclaimer stickers in textbooks. The stickers say, "evolution is a theory, not a fact."
All passengers and crew have now been accounted for in the aftermath of a passenger train derailment in Mississippi. One person was killed after the Amtrak train jumped the tracks near Jackson.
We get more from Jeff Rent of our CNN affiliate WJTV.
(BEGIN VIDEOTAPE)
JEFF RENT, WJTV CORRESPONDENT (voice-over): Early Tuesday evening, the call comes in. An Amtrak train full of passengers has derailed by the big black river in Madison County. Emergency crews responded quickly.
UNIDENTIFIED MALE: There was five box cars down and there were maybe probably up to 100 people in there.
RENT: Crews worked hard to treat the injured.
Alvin Collins was on the train with his fiance when it derailed.
ALVIN COLLINS, CRASH SURVIVOR: And we hit something on the train track and the train just tipped it all over. It threw two old ladies on top of us and I caught my fiancee, or my wife. And we was actually on our way to Chicago for a wedding. So, I mean the train just tilted over and knocked all of us on the right side of the train.
RENT: Paula Turnidge's (ph) mother was also on the train and phoned her daughter shortly after the accident. PAULA TURNIDGE: She was on the train. She said she sat on the opposite side of the train landed on, so that she was OK. But she was just really shaken up.
(END VIDEOTAPE)
COSTELLO: That report from Jeff Rent of CNN affiliate WJTV in Jackson, Mississippi. Mississippi emergency officials believe the derailment is an accident. But the FBI has sent agents to the scene to investigate.
Airline passengers file suit on what they claim is a violation of their rights.
And remembering a time in Rwanda's history that most would rather forget.
And long-term care for seniors -- seeking alternatives to nursing homes? You will want to stick around for this report.
And a very unlucky woman who claims she was a winner, oh, she's now a big loser.
All that and much more just ahead on DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:17 Eastern.
Here's what's all new this morning.
It's been one of the deadliest days for U.S. troops in Iraq. At least 12 Marines have died fighting insurgents in Ramadi.
A wildfire that has burned west of Fort Collins, Colorado for the past week is now 95 percent contained. The blaze covered about 8,900 acres.
In money news, looking for a tax friendly state? Alaska, seen here, as well as New Hampshire and Delaware, get top honors. New York, the District of Columbia and Maine are the least friendly tax wise.
In sports, Barry Bonds went into Tuesday's game with 659 homers, just one short of tying his godfather's, Willie Mays, for the third place on the career home run list. And when the game ended, well, Bonds was still one short.
In culture, Los Vegas magician Siegfried Fischbacher -- well, you know him as Siegfried, don't you? He'll receive the Citizen of the Month award today on behalf of his partner Roy. Roy, as you know, is recovering from last October's tiger attack.
(WEATHER REPORT) COSTELLO: And those are the latest headlines.
The U.S. government has a list that's designed to keep terrorists from boarding airliners.
But as our Jeanne Meserve reports, a new lawsuit says the list is causing problems for hundreds of innocent travelers.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: (voice- over): Being in the U.S. Air Force doesn't help when Michelle Green tries to fly commercially. Because her name or one like it is on the government's no-fly list, when she goes to an airport, she is questioned, searched and delayed, sometimes to the point of missing flights.
MICHELLE GREEN, NO-FLY PLAINTIFF: I give them my orders. I give them my TDY orders. I give them my birth certificate. And I ask them each time if that could be the last time. Is there anything in the system that they can clear me? And they said that there is nothing.
MESERVE: Saying that hundreds if not thousands of other people are suffering significant embarrassment and humiliation, the American Civil Liberties Union is challenging the constitutionality of the no- fly list, which is intended to keep terrorists off of airplanes.
DAVID FATHI, ACLU ATTORNEY: I am not a hijacker. I am not a terrorist. And the government has no reason to put my name on a list of suspected terrorists.
MESERVE: The Transportation Security Administration will not comment on the lawsuit, but admits the no-fly list administered by individual airlines has ensnared innocent travelers.
MARK HATFIELD, TRANSPORTATION SECURITY ADMINISTRATION: We need to replace the system and get something that is designed for the times, that is designed to protect privacy and address individuals' needs, as well as providing a very needed layer of security.
MESERVE: Specifically, TSA proposes CAPPS-2. It would run passenger names through government and private databases and assign a color-coded risk classification. The ACLU says that could be worse.
JAY STANLEY, ACLU: It doesn't make sense to replace this flawed, deeply flawed program with a larger program that will catch innocent people in larger numbers than is already happening.
MESERVE (on camera): The government maintains CAPPS-2 would stop fewer people, not more, but because of objections from the ACLU and others it has not been able to test the system and no timetable for rolling it out has even been set.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE) COSTELLO: Turning now to the markets, the dollar is on the rise and nearing a four year high against the euro.
For that, though, let's head live to London to find out more, and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
Yes, the dollar is just under $1.21 against the euro this morning and sterling is up almost 184 against the greenback.
In terms of the main markets today, the FTSE is up a quarter of one percent here in London. And on the continent, both the DAX in Frankfurt and the CAC in Paris up about a half of one percent.
The futures market right now in the U.S. pointing to a slightly lower open. One of the weights there, Alcoa, the big aluminum producer, came in with its earnings after the bell last night. They were shy of what Wall Street was expecting and the stock fell more than a dollar in after hours trading.
And in the other side of the spectrum, Yahoo! will report after the bell tonight. The expectation there is $0.11 a share.
And finally, another look at Nokia, which got hammered yesterday on a sales warning, down 19 percent in New York trading. It's off another 1 1/4 percent this morning as several analysts have become more bearish on the stock -- Carol, have a great morning.
COSTELLO: Thank you. BENJAMIN: Back to you.
COSTELLO: You, too.
Thank you, Todd Benjamin.
She claimed to be a big winner. Now a Lotto loser has to pay the piper.
This is Wednesday on DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: In our DAYBREAK Eye-Opener this morning, there's good news about a pair of formerly conjoined Egyptian twins. Remember them? Nearly six months after their separation surgery, two and a half month old Mohamed and Ahmed Ibrahim have been discharged from a Dallas hospital. The boys, who wear special helmets to protect their fragile heads, return to the hospital for daily physical therapy and rehabilitation sessions, but they're doing A-OK.
Remember the Ohio woman who claimed to have bought and lost a winning lottery ticket worth $162 million? Well, Elecia Battle has been convicted of filing a false police report and she has been fined $1,000. She'll also perform 50 hours of community service and pay $5,500 in court costs. Now for an update on Gizmo. He's the one on the right. The Swanson, Texas City Council voted to allow the African servel cat to stay with his adopted family. The Council made an exception to their new law that bans wild and exotic animals from being kept as pets. So that's one happy family and one happy Gizmo.
MYERS: Oh, a nice little cat.
COSTELLO: Nice little cat.
We had some interesting e-mails, Chad, yesterday.
MYERS: Some not so nice ones, from what I can tell.
COSTELLO: Please, allow me to read this one.
MYERS: I'm ready.
COSTELLO: OK. This is...
MYERS: Did he leave his address?
COSTELLO: No, just K. Madison. I don't know where they're from, though. But he or she says: "It is difficult enough to expose the audience to the totally self-absorbed Carol Costello. Perhaps some get over yourself personality disorders would be in order. Fortunately, Bill Hemmer, Soledad O'Brien and other hosts do not suffer from this DAYBREAK shortcoming."
MYERS: Hmmm.
COSTELLO: Self-absorbed. Hmmm. My close-up, please. Self- absorbed.
MYERS: That's the wrong finger. I'm sorry.
COSTELLO: The FCC is watching.
MYERS: Oh, of course. I'm sorry.
COSTELLO: Self-absorbed? Of course I'm self-absorbed, I'm a television reporter.
On to e-mail number two. "I want to thank Neal Boortz. He actually does a service for John Kerry when Neal said that Ted Kennedy will hurt the Democrats' chances at winning the White House. Neal's indictments of being liberal make me very proud to be liberal and make me want to work even harder to change the administration currently in the White House.
MYERS: That's from Nanelle from North Carolina.
COSTELLO: Nanelle, thank you.
This -- man, I was getting blammed yesterday, wasn't I?: "Carol, I was offended by your interview of the two gentlemen supposedly representing opposing views. The liberal had an opinion you described as a twist, while you presented that you strongly agreed with the conservative."
MYERS: I've never heard that before out of you.
COSTELLO: Don't you know we at CNN are the liberal media?
MYERS: Remember, the weather guys and the sports guys are the conservative ones in a TV station, just so you know.
COSTELLO: No, I try to be fair all the way around.
MYERS: You do. You really do.
COSTELLO: I try really hard to be fair.
MYERS: You always try to be fair. And it doesn't really matter whether you're talking to a liberal or a conservative, you're always trying to take the other side, if there isn't another side presented there.
COSTELLO: I like to argue.
MYERS: So...
COSTELLO: True. OK. The last e-mail.
MYERS: Your fiance has that going for him.
COSTELLO: I know. He hates that about me, actually.
OK: "Where do you dig up these critics from? Most certainly what Kennedy said is totally correct. The rest of the world has been saying that for almost two months and predicted it since the beginning. And, yes, Bush lied. He knew differently."
That is from G.B. And, of course, they're commenting on Ted Kennedy's assertion that Iraq is becoming Bush's Vietnam.
MYERS: And also commenting on Neal. Neal said that it's not a lie unless you know it not to be true when you say it. So that's right.
COSTELLO: And for those of you who don't watch our six o'clock hour, Neal Boortz is our conservative debater...
MYERS: Libertarian.
COSTELLO: Libertarian conservative. And then we have Mike Malloy on the other side, and he is a liberal talk show host.
MYERS: Right.
COSTELLO: So, if you're not around for the 6:00 a.m. hour of DAYBREAK, you have to stick around next Tuesday, because it's pretty darned exciting. MYERS: Yes, I should tape it.
COSTELLO: Yes.
Here's what's all new in the next half hour of DAYBREAK.
Death before surrender -- radical Shiites warn of dire consequences if U.S. troops try to take a religious leader by force. We're going to take you back live to Baghdad.
Officials at the Vatican are stepping up security in anticipation of the Easter celebration. But is it enough?
And long-term care for the elderly -- it doesn't necessarily mean living in a nursing home. We'll look at some of the options and the cost involved.
You stay right there.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Nike and Addidas are names that typically come to mind when it comes to athletic wear. Yet by developing sportswear that keeps athletes dry when they exercise, Under Armour has the competition sweating. The company's captured over 60 percent of the market for athletic compression wear, with five year sales growth of 12,000 percent. Under Armour recently landed the number two spot on "Inc." Magazine's 500 list.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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