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CNN Live At Daybreak
George Bush, Tony Blair Will Meet at White House Later Today; Update on Situation in Iraq
Aired April 16, 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: Tony Blair comes to Washington to talk with President Bush about the deteriorating situation in Iraq.
Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK.
I'm Carol Costello.
Here are the latest headlines for you now.
In Fallujah, a shaky cease-fire -- emphasis on the shaky part. Overnight, intense explosions were heard, possibly from mortar fire. We'll have a live report for you in just a few minutes.
Tony Blair, President Bush's key ally in the war in Iraq, comes to the White House this morning. The British prime minister and the president will hold a news conference.
The U.S. State Department orders non-essential personnel to leave Saudi Arabia. It says extremists are planning attacks on Western housing compounds.
The CIA says the voice on the audiotape we told you about a day ago probably does belong to Osama bin Laden. European leaders are rejoicing the truce offered by the al Qaeda leader on that tape.
Dick Cheney is wrapping up a week long visit to Asia. The vice president visits U.S. troops in South Korea and promises victory in the war on terror.
Now to the forecast center and Chad -- good morning.
(WEATHER REPORT)
COSTELLO: George Bush and Tony Blair will have a lot to talk about when they meet at the White House later today. To get more on what exactly they'll talk about, let's head live to London and CNN's Robin Oakley -- good morning, Robin.
ROBIN OAKLEY, CNN CORRESPONDENT: Good morning, Carol.
Well, we've had one indication of one of the subjects they'll talk about from the meeting Tony Blair has already head with Kofi Annan at the United Nations, trying to press him to show some enthusiasm for a new U.N. resolution which would get the U.N. much more involved in Iraq and which would help to drive Iraq forward towards elections, maybe smooth the way for countries like France and Germany, who are against the war, coming in to help in the post- conflict situation more effectively, if there is that U.N. involvement.
They've certainly had signs from President Bush this week that he is much more willing to consider a heavy U.N. involvement in Iraq. So that clearly will be one subject.
Some disappointment, though, among British officials over George Bush's endorsement of Ariel Sharon's plans on the Middle East peace process and his determination to keep on with a lot of those West Bank settlements. And George Bush's endorsement of that is being seen by European leaders as really ending the road map process and pre- determining issues which should be only for final status talks. Javier Solana, the high representative for foreign policy in the European Union, saying that there can be no way that the pre-1967 boundaries can be changed without both sides, Palestinians and Israelis, agreeing. The same message coming from Brian Cowen with Ireland, the Irish foreign minister, with Ireland currently in the E.U. presidency.
So, a lot there to talk about and for Tony Blair to show that he's still got some clout with President Bush on that Middle East issue in particular -- Carol.
COSTELLO: Robin Oakley live from London this morning.
President Bush and the prime minister, by the way, will hold a joint news conference later this morning in the Rose Garden. Of course, CNN will carry that live for you at 11:55 Eastern.
Now let's bring you up to speed on what's happening right now in Iraq in our situation report.
There is more fighting in Fallujah despite a shaky cease-fire. Intense explosions, possibly from insurgents' mortar fire could be heard for several hours. Another kidnapping is being reported today. Denmark says that one of its citizens, an unarmed businessman, was taken captive on the road from Basra to Baghdad. Russia is resuming flights out of Iraq today. Moscow is evacuating more than 800 civilians who were working for Russian companies in Iraq. The pullout is due to the escalating violence and the hostage taking. And an ominous warning from Mohammed eel-Baradei, the chief of the U.N. nuclear watchdog group. He says Iraqi nuclear facilities appear to be unguarded and he says radioactive materials are disappearing.
On the hostage front in Iraq, good news and bad news for Japan. Three of its citizens have been freed by their captors after being held for a week. But two other Japanese are unaccounted for in Iraq and Japan's prime minister says they may have been kidnapped.
CNN's Atika Shubert live in Tokyo to tell us more -- hello, Atika.
ATIKA SHUBERT, CNN CORRESPONDENT: Hi, Carol. Well, those three hostages are actually out of their way -- sorry, on the way out of Baghdad, going to Dubai, and they are expected in Japan some time over the weekend. Obviously, this was a very happy ending to an agonizing wait by their families. They literally jumped for joy when they saw the first pictures coming across on Al Jazeera Arab television, showing them that their loved ones were, in fact, safe and apparently in good health.
Unfortunately, however, there's also been bad news for Japan. As you mentioned, the government is looking into reports that two Japanese nationals may have been abducted just outside of Baghdad, one a freelance journalist, the other a peace activist.
Now, the government says it is still confirming what exactly happened -- Carol.
COSTELLO: As for two of the former Japanese hostages, will they go back to Iraq? I heard word that they may.
SHUBERT: That's right. Two of them, one of them a woman who was working with children's rights in Iraq, say she wants to go back to Iraq because she wants to continue working there. And that's caused a bit of a debate here, particularly with some members of the public that have actually put some of the blame on the hostages, saying that they themselves knew the risks of going into Iraq and that they should not return.
The government also has signaled their displeasure at this, saying it puts other Japanese citizens at risk, as well, in Iraq, and they're asking all Japanese citizens to leave. Others, however, say the government is the one who should take more responsibility and explain why its policy of supporting the U.S. occupation of Iraq may be causing Japanese nationals to be targeted for terrorism -- Carol.
COSTELLO: Atika Shubert live in Tokyo this morning.
The body of a Wisconsin National Guard soldier, Michelle Witmer, is back home. The 20-year-old was killed in Iraq a week ago. Her two soldier sisters and other family members watched as her flag-draped casket returned last night. The sisters have not yet decided if they'll request to be transferred out of Iraq.
Now for more on the overnight explosions in Fallujah and word that a Danish businessman may have been taken hostage in Iraq, let's head live to Baghdad now and our bureau chief there, Jane Arraf -- hello, Jane.
JANE ARRAF, CNN CORRESPONDENT: Hello, Carol.
That's just the latest of this rash of hostage takings, a Danish businessman, according to the Danish foreign ministry, but no other details yet.
Now, there have been varying nationalities, varying occupations of people being held and most of them have been released. But one was executed, an Italian hostage, of course, yesterday, in the first confirmed execution of a hostage being taken.
All of this against the backdrop of potentially explosive situations in the town of Fallujah, west of Baghdad, and in Najaf, the holy city to the south, where U.S. forces are massing but hope to come to a negotiated settlement there with a radical Shia leader.
In Fallujah overnight, sporadic explosions, sporadic gunfire, despite a cease-fire that was holding overnight. There are Marines there, of course, trying to get rid of insurgents and a very potentially volatile situation with increasing criticism of civilian casualties -- Carol.
COSTELLO: Jane, I was just wondering how much of what's happening on the ground, particularly the hostage taking, how does that affect plans for that June 30 hand over?
ARRAF: Well, the United States says it is holding firm on that date. And, indeed, it seems there's very little else that they want more than to hand over power. Now, now a whole lot will change. We will have a new Iraqi government, Iraqis hope. The U.S. will no longer be an occupying power, along with Britain. They will simply have the world's largest American embassy here. The troops will remain. That it not going to change.
But what will change is the caretaker government that will take over. It won't be the U.S.-appointed Governing Council. We're talking about something different, fostered by the United Nations, put in place with the help of other countries, and hopefully something more representative to Iraqis than what's in place now -- Carol.
COSTELLO: Jane Arraf live in Baghdad this morning.
The wife of U.S. hostage Thomas Hamill says she has faith her husband will be returned safely. Hamill, a fuel truck driver, was last seen a week ago when his convoy was attacked in Iraq.
Kelli Hamill talked with CNN's Larry King.
(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")
KELLIE HAMILL, WIFE OF U.S. CAPTIVE: Well, I would like to let my husband know, first of all, that we love him and miss him very much. We hope he's doing fine. We would also like to say to the people that have him captive, we hope they would release him unharmed and safe so he can come to us just as soon as possible.
(END VIDEO CLIP)
COSTELLO: And Hamill says the execution of an Italian hostage on Wednesday makes her worry even more about her husband.
The White House is reportedly thinking about a major overhaul in the way it manages intelligence. The "New York Times" reports the Bush administration may create a powerful new post of director of national intelligence. That person would manage the government's 15 intelligence agencies, which are now scattered across several departments. The plan would preempt the 9/11 Commission's final report. It would answer the Commission's preliminary conclusion that the current system leaves no one truly in charge of intelligence.
Yet to come on DAYBREAK, which candidate is the nation's youngest voters leaning towards? Stick around, you'll find out.
And didn't get to go on spring break? Well, do not despair. We've got instant gratification. You can get your tan in a can.
And the 13 week job search is finally over for one lucky apprentice. And get this -- the winner doesn't even need the money.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:13 Eastern.
Here's what's all new this morning.
In Fallujah, where a shaky cease-fire is in effect, explosions were heard overnight, possibly from insurgents' mortars.
British Prime Minister Tony Blair visits the White House this morning. He and President Bush will discuss the situation in Iraq and then they'll hold a news conference.
In money news, Ulysses S. Grant is getting a little color in his cheeks. Grant's face on the new $50 bill that's coming out soon will be more than just black and white. Adding color is supposed to make the bill harder to counterfeit.
In sports, Montreal blasts Boston 5-1 in the first round of the NHL hockey playoffs. But the Bruins lead the best of seven series, 3- 2.
In culture, operators are standing by to say happy birthday to the infomercial. It has just turned 20 years old. Love 'em or hate 'em, they bring in $154 billion a year.
Wow!
CHAD MYERS, CNN CORRESPONDENT: What was the first one, I wonder?
COSTELLO: I don't know.
MYERS: I want to dig that up.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Time now to check the overseas markets to see how Wall Street investors may zip up the week.
For that, we turn to Jim Boulden, who is checking the financial numbers for us live from London -- good morning, Jim.
JIM BOULDEN, CNN CORRESPONDENT: Yes, good morning.
As you can see here, a pretty good day in Europe. This might help Wall Street, indeed, to end the week on a positive note. London is one of the best performing so far, up almost two quarters of a percent. The other two main markets, Paris and Frankfurt, doing well. Switzerland keeps, ah, it keeps going back and forth, so we'd have to say that's about equal. Not doing much at all.
The big story out of here will be Nokia. In about 45 minutes, the Finnish cell phone maker will announce a trading statement. It's going to tell us how many mobile phones it sold in Q1, between January and March. The reason this is important is Nokia is the biggest maker of cell phones and Samsung, out of Korea, overnight said that it has now taken a 14 percent share in the cell phone market, eating away at Nokia.
Frankly, Nokia these days is making boring phones, according to analysts and according to many teenagers. They love the new Samsung Clamshell phones. Nokia is going to tell us what kind of phones it's going to come out with this year and if it's going to take back some of this market share. It currently has 38 percent. Some analysts are saying Nokia is in trouble. It's not putting out phones that people want to see.
Let's look at the tech check here. Overnight, Sun and IBM in the U.S. after the bell gave some OK numbers, but gave some worrying guidance. People said IBM's numbers were good, but not that good.
Despite all of that, we see that tech here is doing quite well.
That's it for now -- back to you.
COSTELLO: Thanks, Jim.
Jim Boulden live from London this morning.
Stories across America this Friday, the National Rifle Association opens its annual meeting today in Pittsburgh. Vice President Dick Cheney will be the keynote speaker, but the NRA will not endorse a presidential candidate until after the party conventions this summer.
Gay marriage is the major issue at the convention in Palm Springs, California of the Log Cabin Republicans. That would be gay people of the GOP persuasion. The rhetoric could be interesting. Members will decide whether to support President Bush, who has endorsed a constitutional amendment to ban gay marriage.
Thousands of high school students from across the country have brought hundreds of robots to Atlanta. The machines, built by the student teams, will compete for pieces of a four and a half -- for parts, I should say, of a $4.5 million scholarship kitty. The 13th annual robotics competition is sponsored by a group that promotes careers in science and technology. Politics hits the college campaign trail. It's an echo of the '60s, as college students speak out against the war and the president. But is that a yes for his top contender?
Who's fired and who's hired? "The Apprentice" frenzy has finally come to an end, at least for now. We'll tell you who finally landed the top spot.
This is DAYBREAK for Friday.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP FROM "THE APPRENTICE")
DONALD TRUMP: Bill, you're hired.
(END VIDEO CLIP)
COSTELLO: Oh, what you've all been waiting for with bated breath. It took 13 weeks to hear those words. But Bill finally wins "The Apprentice" job with Donald Trump. Bill will oversee the construction of a 90 story skyscraper in Chicago. His starting salary will be $250,000 a year. That means Bill, an Internet millionaire, will actually have to take a pay cut.
MYERS: He actually started like the Cigar of the Month Club or something. He was 24.
COSTELLO: Yes, he became a millionaire at like...
MYERS: And he said you don't have to go to Harvard to be a millionaire, which was kind of a little poke.
COSTELLO: And you don't even have to be on television to be a millionaire. He did it, yet he still appeared on "The Apprentice" and Bill won, beating out Kwame.
MYERS: Right. And Kwame will be a millionaire in less than, let me think, three months.
COSTELLO: Probably so.
MYERS: Yes.
COSTELLO: Doing something.
MYERS: They'll pick him up. He's already got like three deals going on. I'm sure there'll be a book, there'll be a movie, all kinds of stuff. So...
COSTELLO: Twenty million viewers tune into that show every week.
MYERS: You know, I watched the first couple of episodes and then it got kind of a little late, so I really couldn't do it. But I enjoyed it. I watched the -- the one I enjoyed the most was a garage sale, or a kind of an auction thing. They had to go. They had a thousand dollars. Here's a thousand dollars, go make something and then they had to go sell it. And so they had -- they went into the flea market and they tried to sell it. And some money got stolen and there was back stabbing and it was like, oh, this is a real life soap opera. This isn't made up. So...
COSTELLO: That's real live business, are you kidding?
MYERS: It was pretty funny.
COSTELLO: No, it's kind of a brain show, dare I say that? It was smarter than the normal reality show, let's put it that way.
MYERS: Did you see, 315,000 people applied for those 16 spots?
COSTELLO: That's crazy.
MYERS: Could you imagine how many is going to apply now for part two?
COSTELLO: For the next -- yes, exactly. I'm sure twice that many. Maybe three times that many. But we'll be waiting with bated breath, as I said.
MYERS: But the guy gets to look at a -- he gets to oversee a skyscraper. That's not the job I want but...
COSTELLO: Well, but if he does a great job, maybe he'll grow in the company...
MYERS: Yes, of course.
COSTELLO: ... and he'll become even richer.
MYERS: Yes.
COSTELLO: Maybe he'll become a b-b-b-billionaire.
MYERS: I'm sure he will.
COSTELLO: One never knows.
MYERS: Him and "The Donald."
COSTELLO: Exactly.
Time for our DAYBREAK Eye-Opener now.
What goes together like peaches and cream and peanut butter and jelly?
MYERS: Peanut butter and chocolate.
COSTELLO: Oh, why cops and donuts, Chad.
MYERS: Oh. COSTELLO: Scores of the world's finest police came from far and wide. Loosening their gun belts, they lunged into a pile of pastries at The World Cop Donut Eating Contest, The World Cop Donut Eating Contest. Among other prizes, the winner, who downed nine cake donuts in just three minutes, got a $100 gift certificate to, where else?
MYERS: Dunkin' Donuts.
COSTELLO: Yes, Dunkin' Donuts.
MYERS: Because there's no Krispy Kreme out there yet.
COSTELLO: Take a look at this kitty cat. She probably used up a few of her nine lives, making a long trip. A Florida businessman opened a shipment from China when out jumped a starving cat. She was trapped for a month in that container, shipped from China all the way to Los Angeles and then on a train to Tampa. She is now named China and she is recovering, eating on her own and it looks like she's going to be just fine.
You may not like Jesse Ventura's politics, but you've got to admit, he has about the same amount of experience as President Bush. Should I say that? The former Minnesota governor is eyeing the White House. Just winding up a semester teaching at Harvard, Ventura says people keep telling him run, Jesse, run.
MYERS: Run very fast. Run away.
COSTELLO: Yes.
On the campaign trail, John Kerry launches a new cartoon ad on his Web site today. But the message is no laughing matter. It's designed to show how President Bush's economic policies have made it harder for middle class families to make ends meet.
In the meantime, the Democratic presidential hopeful wraps up a week long tour of college campuses today.
CNN's Kelly Wallace takes a look at the youth vote.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: It is my great pleasure to introduce to you the next president of the United States John Kerry.
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Courting the college vote has become politics 101. That's why John Kerry is touring campuses this week.
SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: So many young people don't believe in politics anymore.
WALLACE: And why the Republican Party chief brought Reggie the registration brig to MTV in Times Square a few weeks ago.
UNIDENTIFIED MALE: Young voters are a happy hunting ground for us.
WALLACE: And they are up for grabs. According to a new national poll by Harvard University, 41 percent of students call themselves Independent as opposed to Democrat or Republican.
JEHMU GREENE, PRESIDENT, ROCK THE VOTE: We absolutely already know that they're swing voters. If these candidates reach out to them and address these issues and answer their questions and ask for their vote they're going to be surge voters.
WALLACE: The poll found the presumptive Democratic nominee leading President Bush by ten points with Ralph Nader getting five percent but students who helped design the survey say Kerry's support remains soft.
CAITLIN MONAHAN, HARVARD UNIVERSITY: Basically this is more of a no vote for George Bush than a yes vote for John Kerry, so people really don't know who he is and they're waiting for him to define himself.
WALLACE: And that's part of the reason why the Senator went on MTV a few weeks ago. No questions on boxers or briefs but on who can inspire the younger generation.
KERRY: I hope I can inspire young people to care about the system and this race.
WALLACE: One of the more surprising findings the traditional liberal or conservative labels don't fit most students. Fifty-two percent describe themselves as either religious or secular centrists concerned with social issues like gay marriage and affirmative action.
JONATHAN CHAVEZ, HARVARD UNIVERSITY: We're seeing a development of this new religious center among college students, people who believe in religious values but are not necessarily going to be Republican voters.
WALLACE (on camera): But will they go to the polls? If this survey is any guide the answer is yes. More than 60 percent say they definitely will vote in November.
Kelly Wallace, CNN, New York.
(END VIDEOTAPE)
COSTELLO: And here's what's ahead in our next half hour.
Fallout in Fallujah as overnight explosions put a shaky cease- fire to the test. And the war in Iraq will take top priority in the nation's capital as international allies have a meeting of the minds.
Also, ready, set, spray. Later this hour, simple steps to that perfect tan.
Stay tuned.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Filling up at the gas pump lately? Then you've probably noticed that prices for gasoline have shot up once again. According to AAA, the average price of gasoline in the U.S. continues to hit all time highs. A gallon of gas recently averaged more than $1.75, with the highest prices found in California.
What's behind the rise? Tighter supply from oil producers, along with an increase in demand for around the world.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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Aired April 16, 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: Tony Blair comes to Washington to talk with President Bush about the deteriorating situation in Iraq.
Good morning to you.
From the CNN global headquarters in Atlanta, this is DAYBREAK.
I'm Carol Costello.
Here are the latest headlines for you now.
In Fallujah, a shaky cease-fire -- emphasis on the shaky part. Overnight, intense explosions were heard, possibly from mortar fire. We'll have a live report for you in just a few minutes.
Tony Blair, President Bush's key ally in the war in Iraq, comes to the White House this morning. The British prime minister and the president will hold a news conference.
The U.S. State Department orders non-essential personnel to leave Saudi Arabia. It says extremists are planning attacks on Western housing compounds.
The CIA says the voice on the audiotape we told you about a day ago probably does belong to Osama bin Laden. European leaders are rejoicing the truce offered by the al Qaeda leader on that tape.
Dick Cheney is wrapping up a week long visit to Asia. The vice president visits U.S. troops in South Korea and promises victory in the war on terror.
Now to the forecast center and Chad -- good morning.
(WEATHER REPORT)
COSTELLO: George Bush and Tony Blair will have a lot to talk about when they meet at the White House later today. To get more on what exactly they'll talk about, let's head live to London and CNN's Robin Oakley -- good morning, Robin.
ROBIN OAKLEY, CNN CORRESPONDENT: Good morning, Carol.
Well, we've had one indication of one of the subjects they'll talk about from the meeting Tony Blair has already head with Kofi Annan at the United Nations, trying to press him to show some enthusiasm for a new U.N. resolution which would get the U.N. much more involved in Iraq and which would help to drive Iraq forward towards elections, maybe smooth the way for countries like France and Germany, who are against the war, coming in to help in the post- conflict situation more effectively, if there is that U.N. involvement.
They've certainly had signs from President Bush this week that he is much more willing to consider a heavy U.N. involvement in Iraq. So that clearly will be one subject.
Some disappointment, though, among British officials over George Bush's endorsement of Ariel Sharon's plans on the Middle East peace process and his determination to keep on with a lot of those West Bank settlements. And George Bush's endorsement of that is being seen by European leaders as really ending the road map process and pre- determining issues which should be only for final status talks. Javier Solana, the high representative for foreign policy in the European Union, saying that there can be no way that the pre-1967 boundaries can be changed without both sides, Palestinians and Israelis, agreeing. The same message coming from Brian Cowen with Ireland, the Irish foreign minister, with Ireland currently in the E.U. presidency.
So, a lot there to talk about and for Tony Blair to show that he's still got some clout with President Bush on that Middle East issue in particular -- Carol.
COSTELLO: Robin Oakley live from London this morning.
President Bush and the prime minister, by the way, will hold a joint news conference later this morning in the Rose Garden. Of course, CNN will carry that live for you at 11:55 Eastern.
Now let's bring you up to speed on what's happening right now in Iraq in our situation report.
There is more fighting in Fallujah despite a shaky cease-fire. Intense explosions, possibly from insurgents' mortar fire could be heard for several hours. Another kidnapping is being reported today. Denmark says that one of its citizens, an unarmed businessman, was taken captive on the road from Basra to Baghdad. Russia is resuming flights out of Iraq today. Moscow is evacuating more than 800 civilians who were working for Russian companies in Iraq. The pullout is due to the escalating violence and the hostage taking. And an ominous warning from Mohammed eel-Baradei, the chief of the U.N. nuclear watchdog group. He says Iraqi nuclear facilities appear to be unguarded and he says radioactive materials are disappearing.
On the hostage front in Iraq, good news and bad news for Japan. Three of its citizens have been freed by their captors after being held for a week. But two other Japanese are unaccounted for in Iraq and Japan's prime minister says they may have been kidnapped.
CNN's Atika Shubert live in Tokyo to tell us more -- hello, Atika.
ATIKA SHUBERT, CNN CORRESPONDENT: Hi, Carol. Well, those three hostages are actually out of their way -- sorry, on the way out of Baghdad, going to Dubai, and they are expected in Japan some time over the weekend. Obviously, this was a very happy ending to an agonizing wait by their families. They literally jumped for joy when they saw the first pictures coming across on Al Jazeera Arab television, showing them that their loved ones were, in fact, safe and apparently in good health.
Unfortunately, however, there's also been bad news for Japan. As you mentioned, the government is looking into reports that two Japanese nationals may have been abducted just outside of Baghdad, one a freelance journalist, the other a peace activist.
Now, the government says it is still confirming what exactly happened -- Carol.
COSTELLO: As for two of the former Japanese hostages, will they go back to Iraq? I heard word that they may.
SHUBERT: That's right. Two of them, one of them a woman who was working with children's rights in Iraq, say she wants to go back to Iraq because she wants to continue working there. And that's caused a bit of a debate here, particularly with some members of the public that have actually put some of the blame on the hostages, saying that they themselves knew the risks of going into Iraq and that they should not return.
The government also has signaled their displeasure at this, saying it puts other Japanese citizens at risk, as well, in Iraq, and they're asking all Japanese citizens to leave. Others, however, say the government is the one who should take more responsibility and explain why its policy of supporting the U.S. occupation of Iraq may be causing Japanese nationals to be targeted for terrorism -- Carol.
COSTELLO: Atika Shubert live in Tokyo this morning.
The body of a Wisconsin National Guard soldier, Michelle Witmer, is back home. The 20-year-old was killed in Iraq a week ago. Her two soldier sisters and other family members watched as her flag-draped casket returned last night. The sisters have not yet decided if they'll request to be transferred out of Iraq.
Now for more on the overnight explosions in Fallujah and word that a Danish businessman may have been taken hostage in Iraq, let's head live to Baghdad now and our bureau chief there, Jane Arraf -- hello, Jane.
JANE ARRAF, CNN CORRESPONDENT: Hello, Carol.
That's just the latest of this rash of hostage takings, a Danish businessman, according to the Danish foreign ministry, but no other details yet.
Now, there have been varying nationalities, varying occupations of people being held and most of them have been released. But one was executed, an Italian hostage, of course, yesterday, in the first confirmed execution of a hostage being taken.
All of this against the backdrop of potentially explosive situations in the town of Fallujah, west of Baghdad, and in Najaf, the holy city to the south, where U.S. forces are massing but hope to come to a negotiated settlement there with a radical Shia leader.
In Fallujah overnight, sporadic explosions, sporadic gunfire, despite a cease-fire that was holding overnight. There are Marines there, of course, trying to get rid of insurgents and a very potentially volatile situation with increasing criticism of civilian casualties -- Carol.
COSTELLO: Jane, I was just wondering how much of what's happening on the ground, particularly the hostage taking, how does that affect plans for that June 30 hand over?
ARRAF: Well, the United States says it is holding firm on that date. And, indeed, it seems there's very little else that they want more than to hand over power. Now, now a whole lot will change. We will have a new Iraqi government, Iraqis hope. The U.S. will no longer be an occupying power, along with Britain. They will simply have the world's largest American embassy here. The troops will remain. That it not going to change.
But what will change is the caretaker government that will take over. It won't be the U.S.-appointed Governing Council. We're talking about something different, fostered by the United Nations, put in place with the help of other countries, and hopefully something more representative to Iraqis than what's in place now -- Carol.
COSTELLO: Jane Arraf live in Baghdad this morning.
The wife of U.S. hostage Thomas Hamill says she has faith her husband will be returned safely. Hamill, a fuel truck driver, was last seen a week ago when his convoy was attacked in Iraq.
Kelli Hamill talked with CNN's Larry King.
(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")
KELLIE HAMILL, WIFE OF U.S. CAPTIVE: Well, I would like to let my husband know, first of all, that we love him and miss him very much. We hope he's doing fine. We would also like to say to the people that have him captive, we hope they would release him unharmed and safe so he can come to us just as soon as possible.
(END VIDEO CLIP)
COSTELLO: And Hamill says the execution of an Italian hostage on Wednesday makes her worry even more about her husband.
The White House is reportedly thinking about a major overhaul in the way it manages intelligence. The "New York Times" reports the Bush administration may create a powerful new post of director of national intelligence. That person would manage the government's 15 intelligence agencies, which are now scattered across several departments. The plan would preempt the 9/11 Commission's final report. It would answer the Commission's preliminary conclusion that the current system leaves no one truly in charge of intelligence.
Yet to come on DAYBREAK, which candidate is the nation's youngest voters leaning towards? Stick around, you'll find out.
And didn't get to go on spring break? Well, do not despair. We've got instant gratification. You can get your tan in a can.
And the 13 week job search is finally over for one lucky apprentice. And get this -- the winner doesn't even need the money.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:13 Eastern.
Here's what's all new this morning.
In Fallujah, where a shaky cease-fire is in effect, explosions were heard overnight, possibly from insurgents' mortars.
British Prime Minister Tony Blair visits the White House this morning. He and President Bush will discuss the situation in Iraq and then they'll hold a news conference.
In money news, Ulysses S. Grant is getting a little color in his cheeks. Grant's face on the new $50 bill that's coming out soon will be more than just black and white. Adding color is supposed to make the bill harder to counterfeit.
In sports, Montreal blasts Boston 5-1 in the first round of the NHL hockey playoffs. But the Bruins lead the best of seven series, 3- 2.
In culture, operators are standing by to say happy birthday to the infomercial. It has just turned 20 years old. Love 'em or hate 'em, they bring in $154 billion a year.
Wow!
CHAD MYERS, CNN CORRESPONDENT: What was the first one, I wonder?
COSTELLO: I don't know.
MYERS: I want to dig that up.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Time now to check the overseas markets to see how Wall Street investors may zip up the week.
For that, we turn to Jim Boulden, who is checking the financial numbers for us live from London -- good morning, Jim.
JIM BOULDEN, CNN CORRESPONDENT: Yes, good morning.
As you can see here, a pretty good day in Europe. This might help Wall Street, indeed, to end the week on a positive note. London is one of the best performing so far, up almost two quarters of a percent. The other two main markets, Paris and Frankfurt, doing well. Switzerland keeps, ah, it keeps going back and forth, so we'd have to say that's about equal. Not doing much at all.
The big story out of here will be Nokia. In about 45 minutes, the Finnish cell phone maker will announce a trading statement. It's going to tell us how many mobile phones it sold in Q1, between January and March. The reason this is important is Nokia is the biggest maker of cell phones and Samsung, out of Korea, overnight said that it has now taken a 14 percent share in the cell phone market, eating away at Nokia.
Frankly, Nokia these days is making boring phones, according to analysts and according to many teenagers. They love the new Samsung Clamshell phones. Nokia is going to tell us what kind of phones it's going to come out with this year and if it's going to take back some of this market share. It currently has 38 percent. Some analysts are saying Nokia is in trouble. It's not putting out phones that people want to see.
Let's look at the tech check here. Overnight, Sun and IBM in the U.S. after the bell gave some OK numbers, but gave some worrying guidance. People said IBM's numbers were good, but not that good.
Despite all of that, we see that tech here is doing quite well.
That's it for now -- back to you.
COSTELLO: Thanks, Jim.
Jim Boulden live from London this morning.
Stories across America this Friday, the National Rifle Association opens its annual meeting today in Pittsburgh. Vice President Dick Cheney will be the keynote speaker, but the NRA will not endorse a presidential candidate until after the party conventions this summer.
Gay marriage is the major issue at the convention in Palm Springs, California of the Log Cabin Republicans. That would be gay people of the GOP persuasion. The rhetoric could be interesting. Members will decide whether to support President Bush, who has endorsed a constitutional amendment to ban gay marriage.
Thousands of high school students from across the country have brought hundreds of robots to Atlanta. The machines, built by the student teams, will compete for pieces of a four and a half -- for parts, I should say, of a $4.5 million scholarship kitty. The 13th annual robotics competition is sponsored by a group that promotes careers in science and technology. Politics hits the college campaign trail. It's an echo of the '60s, as college students speak out against the war and the president. But is that a yes for his top contender?
Who's fired and who's hired? "The Apprentice" frenzy has finally come to an end, at least for now. We'll tell you who finally landed the top spot.
This is DAYBREAK for Friday.
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(BEGIN VIDEO CLIP FROM "THE APPRENTICE")
DONALD TRUMP: Bill, you're hired.
(END VIDEO CLIP)
COSTELLO: Oh, what you've all been waiting for with bated breath. It took 13 weeks to hear those words. But Bill finally wins "The Apprentice" job with Donald Trump. Bill will oversee the construction of a 90 story skyscraper in Chicago. His starting salary will be $250,000 a year. That means Bill, an Internet millionaire, will actually have to take a pay cut.
MYERS: He actually started like the Cigar of the Month Club or something. He was 24.
COSTELLO: Yes, he became a millionaire at like...
MYERS: And he said you don't have to go to Harvard to be a millionaire, which was kind of a little poke.
COSTELLO: And you don't even have to be on television to be a millionaire. He did it, yet he still appeared on "The Apprentice" and Bill won, beating out Kwame.
MYERS: Right. And Kwame will be a millionaire in less than, let me think, three months.
COSTELLO: Probably so.
MYERS: Yes.
COSTELLO: Doing something.
MYERS: They'll pick him up. He's already got like three deals going on. I'm sure there'll be a book, there'll be a movie, all kinds of stuff. So...
COSTELLO: Twenty million viewers tune into that show every week.
MYERS: You know, I watched the first couple of episodes and then it got kind of a little late, so I really couldn't do it. But I enjoyed it. I watched the -- the one I enjoyed the most was a garage sale, or a kind of an auction thing. They had to go. They had a thousand dollars. Here's a thousand dollars, go make something and then they had to go sell it. And so they had -- they went into the flea market and they tried to sell it. And some money got stolen and there was back stabbing and it was like, oh, this is a real life soap opera. This isn't made up. So...
COSTELLO: That's real live business, are you kidding?
MYERS: It was pretty funny.
COSTELLO: No, it's kind of a brain show, dare I say that? It was smarter than the normal reality show, let's put it that way.
MYERS: Did you see, 315,000 people applied for those 16 spots?
COSTELLO: That's crazy.
MYERS: Could you imagine how many is going to apply now for part two?
COSTELLO: For the next -- yes, exactly. I'm sure twice that many. Maybe three times that many. But we'll be waiting with bated breath, as I said.
MYERS: But the guy gets to look at a -- he gets to oversee a skyscraper. That's not the job I want but...
COSTELLO: Well, but if he does a great job, maybe he'll grow in the company...
MYERS: Yes, of course.
COSTELLO: ... and he'll become even richer.
MYERS: Yes.
COSTELLO: Maybe he'll become a b-b-b-billionaire.
MYERS: I'm sure he will.
COSTELLO: One never knows.
MYERS: Him and "The Donald."
COSTELLO: Exactly.
Time for our DAYBREAK Eye-Opener now.
What goes together like peaches and cream and peanut butter and jelly?
MYERS: Peanut butter and chocolate.
COSTELLO: Oh, why cops and donuts, Chad.
MYERS: Oh. COSTELLO: Scores of the world's finest police came from far and wide. Loosening their gun belts, they lunged into a pile of pastries at The World Cop Donut Eating Contest, The World Cop Donut Eating Contest. Among other prizes, the winner, who downed nine cake donuts in just three minutes, got a $100 gift certificate to, where else?
MYERS: Dunkin' Donuts.
COSTELLO: Yes, Dunkin' Donuts.
MYERS: Because there's no Krispy Kreme out there yet.
COSTELLO: Take a look at this kitty cat. She probably used up a few of her nine lives, making a long trip. A Florida businessman opened a shipment from China when out jumped a starving cat. She was trapped for a month in that container, shipped from China all the way to Los Angeles and then on a train to Tampa. She is now named China and she is recovering, eating on her own and it looks like she's going to be just fine.
You may not like Jesse Ventura's politics, but you've got to admit, he has about the same amount of experience as President Bush. Should I say that? The former Minnesota governor is eyeing the White House. Just winding up a semester teaching at Harvard, Ventura says people keep telling him run, Jesse, run.
MYERS: Run very fast. Run away.
COSTELLO: Yes.
On the campaign trail, John Kerry launches a new cartoon ad on his Web site today. But the message is no laughing matter. It's designed to show how President Bush's economic policies have made it harder for middle class families to make ends meet.
In the meantime, the Democratic presidential hopeful wraps up a week long tour of college campuses today.
CNN's Kelly Wallace takes a look at the youth vote.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: It is my great pleasure to introduce to you the next president of the United States John Kerry.
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): Courting the college vote has become politics 101. That's why John Kerry is touring campuses this week.
SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: So many young people don't believe in politics anymore.
WALLACE: And why the Republican Party chief brought Reggie the registration brig to MTV in Times Square a few weeks ago.
UNIDENTIFIED MALE: Young voters are a happy hunting ground for us.
WALLACE: And they are up for grabs. According to a new national poll by Harvard University, 41 percent of students call themselves Independent as opposed to Democrat or Republican.
JEHMU GREENE, PRESIDENT, ROCK THE VOTE: We absolutely already know that they're swing voters. If these candidates reach out to them and address these issues and answer their questions and ask for their vote they're going to be surge voters.
WALLACE: The poll found the presumptive Democratic nominee leading President Bush by ten points with Ralph Nader getting five percent but students who helped design the survey say Kerry's support remains soft.
CAITLIN MONAHAN, HARVARD UNIVERSITY: Basically this is more of a no vote for George Bush than a yes vote for John Kerry, so people really don't know who he is and they're waiting for him to define himself.
WALLACE: And that's part of the reason why the Senator went on MTV a few weeks ago. No questions on boxers or briefs but on who can inspire the younger generation.
KERRY: I hope I can inspire young people to care about the system and this race.
WALLACE: One of the more surprising findings the traditional liberal or conservative labels don't fit most students. Fifty-two percent describe themselves as either religious or secular centrists concerned with social issues like gay marriage and affirmative action.
JONATHAN CHAVEZ, HARVARD UNIVERSITY: We're seeing a development of this new religious center among college students, people who believe in religious values but are not necessarily going to be Republican voters.
WALLACE (on camera): But will they go to the polls? If this survey is any guide the answer is yes. More than 60 percent say they definitely will vote in November.
Kelly Wallace, CNN, New York.
(END VIDEOTAPE)
COSTELLO: And here's what's ahead in our next half hour.
Fallout in Fallujah as overnight explosions put a shaky cease- fire to the test. And the war in Iraq will take top priority in the nation's capital as international allies have a meeting of the minds.
Also, ready, set, spray. Later this hour, simple steps to that perfect tan.
Stay tuned.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Filling up at the gas pump lately? Then you've probably noticed that prices for gasoline have shot up once again. According to AAA, the average price of gasoline in the U.S. continues to hit all time highs. A gallon of gas recently averaged more than $1.75, with the highest prices found in California.
What's behind the rise? Tighter supply from oil producers, along with an increase in demand for around the world.
(END VIDEOTAPE)
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