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CNN Live At Daybreak

Latest Developments in Fallujah; In Santa Maria, Authorities Preparing for Appearance by Michael Jackson

Aired April 30, 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: New this morning -- taking the pressure off the powder keg city of Fallujah. U.S. Marines prepare to pullback.
It is Friday, April 30.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date right now.

U.S. Marines plan to pull back from Fallujah into surrounding rural areas. The decision follows an agreement with former Iraqi generals over security for that besieged city.

A recording said to be of terrorist leader Abu Musab al-Zarqawi talks of a plan to bomb the Jordanian intelligence headquarters. The attack was to be a response to Jordan's collaboration with the United States and Israel.

The circus returns to Santa Maria, California today. Media fans and the curious will squeeze into the small city for Michael Jackson's second arraignment in a child molestation case.

And a perfect landing for a U.S. astronaut and his Russian and Dutch crew members. The trio returned to eth today after six months aboard the international space station.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

They actually landed on the dirt. I mean I know our shuttle lands like this, but they actually come down on the dirt, you know, like our old Apollos to go into the water, you think that's softer. But I guess they think the dirt's softer.

(WEATHER REPORT)

COSTELLO: Let's talk about Iraq now. We've been telling you at the top of our show that the Marines are pulling back from the city of Fallujah. We want to find out more about what's happening there. So let's head live to Baghdad and Ben Wedeman -- Ben, are you there? BEN WEDEMAN, CNN CORRESPONDENT: Yes, I'm here, Carol.

Yes, the Marines, according to our information from Fallujah, are going to begin pulling back from certain areas around Fallujah. In some areas, we are told, they haven't even begun to pack up yet, however. Those are the areas adjacent to some of those more troublesome neighborhoods in that city of 300,000.

Now, this is not a deal with the insurgents that they've struck. This is part of an arrangement worked out with a group of former army officers from Saddam Hussein's army who came forward and essentially offered their assistance to the Americans.

Now, they've told the Marines that they can muster somewhere between 600 and 1,000 men who will undertake security duties in and around that city. But, however, no word yet whether any sort of agreement or deal has been reached with the insurgents themselves, who are not necessarily the allies or friends of these Iraq -- former Iraqi Army officers.

Now, according to U.S. military officials here in Baghdad, there are as many as 2,000 armed insurgents in the city. They've also said that there could be as many as 200 Islamic militants from outside of Iraq who are there. No indication yet if they are willing to lay down their arms and allow this Iraqi security force to enter Fallujah. No word, also, whether when they do enter, they will be accompanied by U.S. Marines -- Carol.

COSTELLO: Ben, I want to change topics for just a minute. CBS has been airing photographs of U.S. soldiers allegedly abusing prisoners of war.

What's the reaction from Baghdad now that they're showing up on the Arab networks?

WEDEMAN: Well, for one thing, they haven't showed up, these pictures or this story, in the local press, because no newspapers are printed on Friday, because today is the equivalent of Sunday in the West. However, as you said, those pictures are beginning to run on Al Jazeera and Al-Arabiya. Those are the two most popular Arabic satellite news channels.

But people are also hearing this news on the BBC Arabic service, which is a very popular source of information. And clearly the reaction is not going to be positive at all. Iraqis have been hearing for months now rumors and stories about abuse of prisoners in Abu Ghraib. But this, when the pictures start hitting the streets, it is expected that the reaction is going to be very negative, indeed -- Carol.

COSTELLO: We'll check back with you.

Ben Wedeman live in Baghdad this morning.

And we have the results from the just released polling of Iraqi citizens on war. Most of the interviews for the CNN/"USA Today"/Gallup poll were conducted before attacks on U.S. troops escalated earlier this month.

So how do Iraqis feel about the United States? Well, just under a quarter of the respondents have a favorable opinion. More than half of the Iraqis polled had an unfavorable view. On the question of who should the U.S.-led coalition transfer authority to, most Iraqis said a United Nations panel, with just one in five saying the Iraqi Governing Council.

The woman who photographed the U.S. military caskets being flown home has herself returned home. Tami Silicio was fired by the military contractor after her photographs appeared in a Seattle newspaper.

Tami and her husband talked to reporters after landing in Seattle.

(BEGIN VIDEO CLIP)

TAMI SILICIO, EX-CARGO WORKER: I hope that it finds its way into the hearts of everybody and so everybody can feel how I felt when I was up on that plane. I felt overwhelmed by the whole devastation of how the parents were going to feel and how they grieve, how they were going to be grieving for their loved ones.

(END VIDEO CLIP)

COSTELLO: Defense Department policy bars the media from photographing caskets being returned to the United States.

A decision by ABC's "Nightline" to air the names and photos of the U.S. troops killed in Iraq is not sitting well with one broadcasting company. Sinclair Broadcast Group has ordered its seven ABC stations not to air tonight's broadcast. Sinclair's lawyer says the company finds the programming "contrary to the public interest." ABC News has responded by saying the "Nightline" show "seeks to honor those who've laid down their lives for this country."

Now, in light of the "Nightline" flap, we'd like to know if you agree or disagree with the decision by Sinclair Broadcasting to pull "Nightline" off of its ABC stations tonight. E-mail us your opinions, daybreak@cnn.com, daybreak@cnn.com.

A California style media frenzy is shaping up in the small city of Santa Maria, where Michael Jackson will appear in court later today. Hundreds of fans of the pop music king are already there keeping an overnight vigil outside the gates of Jackson's Neverland Ranch. Thousands from the media -- reporters, camera people, producers -- all covering, all covering on Santa Maria.

At a hearing about six hours from now, Jackson will hear charges returned by a grand jury in his child molestation case.

And it is fortress Santa Maria at the courthouse, with new chain link fences and metal barricades. More than 40 of the town's police officers will be on duty at the courthouse, along with about 50 sheriffs' deputies. CNN's Miguel Marquez sets the scene for you.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: When Michael Jackson comes to court, this will be the path he takes -- double barricades this time. The city of Santa Maria taking no chances. They've hired a private fencing company to come in and sink those fences into the asphalt. They've also purchased brand new interlocking barricades, surrounding the court complex entirely.

Jackson will be arraigned on charges handed up by a grand jury last week. Whatever those charges are, they will supersede an earlier criminal complaint in which Jackson was charged with seven counts of lewd and lascivious acts against a minor under 14 and two counts of serving a minor alcohol to assist in those acts.

Also new for Jackson will be his lawyer. Thomas Mesereau, Jr., a Los Angeles attorney, will replace Mark Geragos and Ben Brafman, after they and Jackson fell out earlier this week. Also something new, the Nation of Islam will not be here, as they did the last time, to provide security for Jackson. A source telling CNN that a low key security company will be brought in instead.

One thing not changing for Jackson -- his supporters will be bussed in in a so-called Keep The Faith Caravan. They'll be bussed in from all over southern California and as far away as Nevada. Today's hearing is expected to last several hours.

Miguel Marquez, CNN, Santa Maria, California.

(END VIDEOTAPE)

COSTELLO: Michael Jackson has released statements strongly denying all charges.

Stories across America this Friday, split decisions in the Jayson Williams manslaughter trial. The jury says it has agreed on six of the counts against the former NBA star, but is split on the other two. The judge has instructed the jurors to keep on trying. Williams is charged in the shooting death of a limo driver two years ago.

Government workers have contained and are trying to clean up about 40,000 gallons of diesel fuel in a marsh area north of San Francisco. The oil spilled when a pipeline burst on Tuesday. The marsh is a major nesting area for migratory birds and some have been found dead.

Authorities say a patch of vacant land west of Grants, New Mexico was responsible for dust storms that swept across Interstate 40 in the past week. A trucker and a couple from Texas were killed in separate crashes in the blinding dust. The governor has ordered water trucks to wet down the area around the interstate.

The threat of terrorism spreads to Southeast Asia. Authorities are seeking out previously unknown Islamic militants in southern Thailand. A live report for you from Maria Ressa.

And is the war in Iraq a deal breaker? Jason Bellini looks at what military recruiters can and cannot offer.

And it's not your mother's wedding anymore -- new trends when it comes to tying the knot.

(COMMERCIAL BREAK)

COSTELLO: Well, here's some advice from the U.S. government if you're about to go overseas -- be careful. The State Department issued a new worldwide caution on Thursday. It also warns Americans to be on the lookout for potential attacks at landmarks in this country. The warning cites an increased threat of attacks and anti- American demonstrations.

A voice claiming to be terrorist leader Abu al-Zarqawi says his group was planning to bomb the Jordanian intelligence headquarters in Amman. Jordanian authorities said Monday they broke up an alleged al Qaeda plot targeting the intelligence building, as well as the U.S. Embassy in Amman.

We're learning more this morning about a series of attacks on police stations earlier this week in southern Thailand. One hundred eight militant fighters were killed, along with three policemen and two soldiers. Intelligence sources tell CNN the attacks were carried out by a new Islamic separatist group.

Our Maria Ressa has more in an exclusive report live from Manila -- good morning, Maria.

MARIA RESSA, CNN CORRESPONDENT: Good morning, Carol.

He said intelligence sources are telling us here that the attacks in southern Thailand, a series of escalating attacks that began last January, have been carried out by a group they called Pusaka. According to them, there are about 2,000 armed men who are part of this group. It is run with the same ideology as al Qaeda and its regional arm here in Southeast Asia, the Jama'at Islamia. In fact, the way these attacks have been carried out -- a series of well- coordinated, simultaneous attacks on police outposts and armories -- and the tactics they used to do that -- basically coordinating it so they can come out with weapons and ammunition -- those same tactics are very similar to what J.I., Jama'at Islamia, used in Ambon, Indonesia four years ago -- back to you, Carol.

COSTELLO: Maria Ressa reporting live from Manila, the Philippines, this morning.

Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

And to progress in talks -- U.S. Marines said today they do plan to pull back from Fallujah into rural areas. No word, though, on exactly when that will happen.

American, Russian and Dutch crew members of the international space station are back on terra firma. Their Soyuz spacecraft touched down a few hours ago, right on target.

In money news, it looks like being connected to the Internet will remain tax-free. The Senate votes to renew a ban on taxing Internet access. The tax ban is for four years. The House wants a permanent ban.

And in sports, the Kentucky Derby kicks off a new tradition on Saturday. Jockeys may now have ads plastered on their uniforms. A judge blocked a state rule banning jockeys from wearing ads during races. So, gentlemen and ladies, start your horses.

In culture, Donald Trump is tying the knot for the third time. Trump proposed to long time girlfriend -- he proposed to his long time girlfriend this week. You see her right there. He gave her a serious bling-bling. No word on exactly how many carats -- Chad.

MYERS: Carol, did you say gentlemen, start your horses?

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Time to check the overseas markets.

Will it be another big day for results in Europe?

Let's head live to London and check in with Diana Muriel -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Yes, it is a big day for results. But it's also a dull and gloomy one weather-wise, and that sentiment seems to have crept into the markets. We're seeing rather a negative mood around. It's pretty flat in most of the main markets, except for Germany, which is lower, down around a quarter of a percentage point.

Time to digest some of these results, but also fears over the Chinese economy reigning itself in. And that's going to affect basic resource producers, particularly steel companies and, of course, the mining stocks, which we've seen falling in recent trade.

And for a look at the currencies, this has been doing rather better. The dollar strengthening overnight, particularly in Japan. It's standing at 110.24 there. That's really because the market seems to think that the U.S. is going to move to raise interest rates, perhaps by August, and that's good news for the dollar. It's also strengthening against the pound, which is at 177.08 or thereabouts at the moment, and against the euro, at 1956 at the moment. Now, the results season is well under way. We've seen two very big German companies coming in with their results. Deutsche Bank, which is the largest bank in Germany, they were down 2.46 percent on the back of its results, despite the fact that it came in with the best quarterly profit that that bank has seen in three years, first quarter net profit at $1.1 billion U.S.

The reason it's being sold off, analysts and investors just don't believe that Deutsche Bank can sustain that kind of improve going forward. They think their forecast for 2004 rather too optimistic.

Volkswagen the other big German company coming in with its results. The operating profit was at $389.1 million, just under half what it was this time last year. But that's -- the bad news seems to be behind it and the stock is up 1.34 percent in Germany -- back to you, Carol.

COSTELLO: Diana Muriel live from London this morning.

Coming up next on DAYBREAK...

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT: How often is the possibility of going to Iraq a deal breaker?

SGT. GREGORY DAVIS, U.S. ARMY: Quite often. It can be.

(END VIDEO CLIP)

COSTELLO: The Army is looking for a few good men and women to join their ranks. Find out why Generation Next is saying no.

And the decision to air the names of U.S. troops killed in Iraq is not sitting well with one broadcasting company. But what do you think? We want to hear from you. Our e-mail address is daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: A posthumous promotion for Pat Tillman. Of course, he's the former NFL player killed in Afghanistan last week. Tillman turned down a $3 million contract offer from the Arizona Cardinals to join the Army two years ago. Tillman, an Army Ranger, was killed when his patrol was ambushed near the Afghan-Pakistan border. Well, he was promoted posthumously from specialist to corporal.

We want to talk more about this "Nightline" flap, because it's becoming big, actually.

MYERS: Yes. Well, you know, you said this, you said a really good thing because I don't think, you don't think some of the viewers that are writing in know what's actually going on. They're not figuring it out. They're thinking ABC is preempting this. This is a one station ownership group. They own 62 TV stations, but seven of them happen to be ABC stations. That Sinclair ownership group is stopping "Nightline" from running tonight.

COSTELLO: In some pretty major cities -- Columbus, Ohio...

MYERS: Yes. Correct.

COSTELLO: Ashville, Winston-Salem...

MYERS: St. Louis.

COSTELLO: St. Louis and Springfield, Mass. And what's happening is Ted Koppel and "Nightline" are going to air the names one by one of the troops...

MYERS: And the pictures.

COSTELLO: And the pictures of the troops killed in Iraq.

MYERS: Right. Right.

COSTELLO: And it says it's doing that to honor the dead.

Sinclair Broadcasting, however, says, and I quote, "While Sinclair would support an honest effort to honor the memory of these brave soldiers, we do not believe that this is what 'Nightline' is doing."

MYERS: Correct.

COSTELLO: So that's why it's not allowing its stations to air the "Nightline" program tonight.

A caveat for you. According to campaign finance records...

MYERS: There you go.

COSTELLO: ... four of Sinclair's top executives each have given the maximum campaign contribution of $2,000 to the Bush-Cheney reelection campaign. The executives have not given a dime to John Kerry's campaign.

MYERS: Correct.

COSTELLO: So...

MYERS: So, do you have left and you have right? Of course you do.

Tom from Atlanta, Georgia: "Those who die for their country should be absolutely honored and their faces and names should be indelibly impressed on all of us who have benefited from their sacrifice."

From Jeff: "I emphatically disagree with Sinclair's broadcasting decision. It has everything to do with partisan politics." Of course it does. "I don't think it's right to prevent ABC's 'Nightline' from posting the names who died in Iraq as long as the families have given their consent." That was from Nora (ph). And I'm not sure that's happened, but I'm not sure that's anything to do with it.

COSTELLO: Well, keep them coming in.

MYERS: Please.

COSTELLO: Daybreak@cnn.com.

MYERS: OK.

COSTELLO: Take three and see -- the Army says it is meeting both its recruitment and retention goals. But with long overseas deployment and dangerous duty now the norm, the recruiters are working a lot harder.

CNN's Jason Bellini visited one of them here in Atlanta.

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT (voice-over): Army recruiter Sergeant Davis is close, very close, to signing Radar Williams (ph). Williams says he's decided he wants to be an infantryman.

DAVIS: It's a good decision and the best news I've heard all day so. BELLINI: Williams, a senior at Douglas High in Georgia, won't, however, sign on the dotted line just yet.

This year, Sergeant Davis admits the Army is a tougher deal to close. He can offer college tuition, signing bonuses and a wide range of job opportunities. What he can't offer are any assurances on Iraq.

(on camera): How often is the possibility of going to Iraq a deal breaker?

DAVIS: Quite often. It can be, based on the influence of their families, their friends, the people that they hang around. BELLINI (voice-over): Sheronda Menuer withdrew her application for the Air Force.

(on camera): So you almost signed up?

SHERONDA MENUER, HIGH SCHOOL SENIOR: Um-hmm. BELLINI: What changed your mind?

MENUER: The things he said and about the -- most of the part, or the down part. BELLINI (voice-over): Dr. Crystal Giddings is the student adviser. She says 18 seniors plan to join the military this year, as opposed to around 60 before the war.

CRYSTAL GIDDINGS, HIGH SCHOOL STUDENT ADVISER: In the past, if they were selecting a military option, they would say, you know, what are the benefits, the medical benefits? Are they going to pay for my college education? But now they're asking more serious questions such as if I make this decision, will I die early? BELLINI: The Army says it's still meeting its recruiting goals 100 percent.

DAVIS: You just have to work harder.

Well, welcome to the Army then. BELLINI: Williams shakes Sergeant Davis' hand...

WILLIAMS: I don't know. I'm still not sure. BELLINI: But then pulls back. He needs more time.

Jason Bellini, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: And here's what's all new in the next half hour of DAYBREAK.

Troops under fire in Najaf. As U.S. casualties pile up, the war's deadliest month. Jane Arraf gets pinned down on the front lines. Bush and Cheney appear before the 9/11 Commission, but with no cameras and no reporters. What impact will their testimony really have?

And later, why couples heading down the aisle are throwing tradition to the wind.

This is DAYBREAK for Friday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: What do the following things have in common -- refrigerators, Jay Leno and jet engines? Well, they're all part of General Electric. And the company has not stopped there. Subsidiary NBC recently purchased Universal Studios, which, in turn, owns theme parks and Cable Network USA. G.E. also acquired Envision Technologies, a leading bomb detection company.

And the sum of these parts? A number five spot in the Fortune 500 list.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired April 30, 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: New this morning -- taking the pressure off the powder keg city of Fallujah. U.S. Marines prepare to pullback.
It is Friday, April 30.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date right now.

U.S. Marines plan to pull back from Fallujah into surrounding rural areas. The decision follows an agreement with former Iraqi generals over security for that besieged city.

A recording said to be of terrorist leader Abu Musab al-Zarqawi talks of a plan to bomb the Jordanian intelligence headquarters. The attack was to be a response to Jordan's collaboration with the United States and Israel.

The circus returns to Santa Maria, California today. Media fans and the curious will squeeze into the small city for Michael Jackson's second arraignment in a child molestation case.

And a perfect landing for a U.S. astronaut and his Russian and Dutch crew members. The trio returned to eth today after six months aboard the international space station.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

They actually landed on the dirt. I mean I know our shuttle lands like this, but they actually come down on the dirt, you know, like our old Apollos to go into the water, you think that's softer. But I guess they think the dirt's softer.

(WEATHER REPORT)

COSTELLO: Let's talk about Iraq now. We've been telling you at the top of our show that the Marines are pulling back from the city of Fallujah. We want to find out more about what's happening there. So let's head live to Baghdad and Ben Wedeman -- Ben, are you there? BEN WEDEMAN, CNN CORRESPONDENT: Yes, I'm here, Carol.

Yes, the Marines, according to our information from Fallujah, are going to begin pulling back from certain areas around Fallujah. In some areas, we are told, they haven't even begun to pack up yet, however. Those are the areas adjacent to some of those more troublesome neighborhoods in that city of 300,000.

Now, this is not a deal with the insurgents that they've struck. This is part of an arrangement worked out with a group of former army officers from Saddam Hussein's army who came forward and essentially offered their assistance to the Americans.

Now, they've told the Marines that they can muster somewhere between 600 and 1,000 men who will undertake security duties in and around that city. But, however, no word yet whether any sort of agreement or deal has been reached with the insurgents themselves, who are not necessarily the allies or friends of these Iraq -- former Iraqi Army officers.

Now, according to U.S. military officials here in Baghdad, there are as many as 2,000 armed insurgents in the city. They've also said that there could be as many as 200 Islamic militants from outside of Iraq who are there. No indication yet if they are willing to lay down their arms and allow this Iraqi security force to enter Fallujah. No word, also, whether when they do enter, they will be accompanied by U.S. Marines -- Carol.

COSTELLO: Ben, I want to change topics for just a minute. CBS has been airing photographs of U.S. soldiers allegedly abusing prisoners of war.

What's the reaction from Baghdad now that they're showing up on the Arab networks?

WEDEMAN: Well, for one thing, they haven't showed up, these pictures or this story, in the local press, because no newspapers are printed on Friday, because today is the equivalent of Sunday in the West. However, as you said, those pictures are beginning to run on Al Jazeera and Al-Arabiya. Those are the two most popular Arabic satellite news channels.

But people are also hearing this news on the BBC Arabic service, which is a very popular source of information. And clearly the reaction is not going to be positive at all. Iraqis have been hearing for months now rumors and stories about abuse of prisoners in Abu Ghraib. But this, when the pictures start hitting the streets, it is expected that the reaction is going to be very negative, indeed -- Carol.

COSTELLO: We'll check back with you.

Ben Wedeman live in Baghdad this morning.

And we have the results from the just released polling of Iraqi citizens on war. Most of the interviews for the CNN/"USA Today"/Gallup poll were conducted before attacks on U.S. troops escalated earlier this month.

So how do Iraqis feel about the United States? Well, just under a quarter of the respondents have a favorable opinion. More than half of the Iraqis polled had an unfavorable view. On the question of who should the U.S.-led coalition transfer authority to, most Iraqis said a United Nations panel, with just one in five saying the Iraqi Governing Council.

The woman who photographed the U.S. military caskets being flown home has herself returned home. Tami Silicio was fired by the military contractor after her photographs appeared in a Seattle newspaper.

Tami and her husband talked to reporters after landing in Seattle.

(BEGIN VIDEO CLIP)

TAMI SILICIO, EX-CARGO WORKER: I hope that it finds its way into the hearts of everybody and so everybody can feel how I felt when I was up on that plane. I felt overwhelmed by the whole devastation of how the parents were going to feel and how they grieve, how they were going to be grieving for their loved ones.

(END VIDEO CLIP)

COSTELLO: Defense Department policy bars the media from photographing caskets being returned to the United States.

A decision by ABC's "Nightline" to air the names and photos of the U.S. troops killed in Iraq is not sitting well with one broadcasting company. Sinclair Broadcast Group has ordered its seven ABC stations not to air tonight's broadcast. Sinclair's lawyer says the company finds the programming "contrary to the public interest." ABC News has responded by saying the "Nightline" show "seeks to honor those who've laid down their lives for this country."

Now, in light of the "Nightline" flap, we'd like to know if you agree or disagree with the decision by Sinclair Broadcasting to pull "Nightline" off of its ABC stations tonight. E-mail us your opinions, daybreak@cnn.com, daybreak@cnn.com.

A California style media frenzy is shaping up in the small city of Santa Maria, where Michael Jackson will appear in court later today. Hundreds of fans of the pop music king are already there keeping an overnight vigil outside the gates of Jackson's Neverland Ranch. Thousands from the media -- reporters, camera people, producers -- all covering, all covering on Santa Maria.

At a hearing about six hours from now, Jackson will hear charges returned by a grand jury in his child molestation case.

And it is fortress Santa Maria at the courthouse, with new chain link fences and metal barricades. More than 40 of the town's police officers will be on duty at the courthouse, along with about 50 sheriffs' deputies. CNN's Miguel Marquez sets the scene for you.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: When Michael Jackson comes to court, this will be the path he takes -- double barricades this time. The city of Santa Maria taking no chances. They've hired a private fencing company to come in and sink those fences into the asphalt. They've also purchased brand new interlocking barricades, surrounding the court complex entirely.

Jackson will be arraigned on charges handed up by a grand jury last week. Whatever those charges are, they will supersede an earlier criminal complaint in which Jackson was charged with seven counts of lewd and lascivious acts against a minor under 14 and two counts of serving a minor alcohol to assist in those acts.

Also new for Jackson will be his lawyer. Thomas Mesereau, Jr., a Los Angeles attorney, will replace Mark Geragos and Ben Brafman, after they and Jackson fell out earlier this week. Also something new, the Nation of Islam will not be here, as they did the last time, to provide security for Jackson. A source telling CNN that a low key security company will be brought in instead.

One thing not changing for Jackson -- his supporters will be bussed in in a so-called Keep The Faith Caravan. They'll be bussed in from all over southern California and as far away as Nevada. Today's hearing is expected to last several hours.

Miguel Marquez, CNN, Santa Maria, California.

(END VIDEOTAPE)

COSTELLO: Michael Jackson has released statements strongly denying all charges.

Stories across America this Friday, split decisions in the Jayson Williams manslaughter trial. The jury says it has agreed on six of the counts against the former NBA star, but is split on the other two. The judge has instructed the jurors to keep on trying. Williams is charged in the shooting death of a limo driver two years ago.

Government workers have contained and are trying to clean up about 40,000 gallons of diesel fuel in a marsh area north of San Francisco. The oil spilled when a pipeline burst on Tuesday. The marsh is a major nesting area for migratory birds and some have been found dead.

Authorities say a patch of vacant land west of Grants, New Mexico was responsible for dust storms that swept across Interstate 40 in the past week. A trucker and a couple from Texas were killed in separate crashes in the blinding dust. The governor has ordered water trucks to wet down the area around the interstate.

The threat of terrorism spreads to Southeast Asia. Authorities are seeking out previously unknown Islamic militants in southern Thailand. A live report for you from Maria Ressa.

And is the war in Iraq a deal breaker? Jason Bellini looks at what military recruiters can and cannot offer.

And it's not your mother's wedding anymore -- new trends when it comes to tying the knot.

(COMMERCIAL BREAK)

COSTELLO: Well, here's some advice from the U.S. government if you're about to go overseas -- be careful. The State Department issued a new worldwide caution on Thursday. It also warns Americans to be on the lookout for potential attacks at landmarks in this country. The warning cites an increased threat of attacks and anti- American demonstrations.

A voice claiming to be terrorist leader Abu al-Zarqawi says his group was planning to bomb the Jordanian intelligence headquarters in Amman. Jordanian authorities said Monday they broke up an alleged al Qaeda plot targeting the intelligence building, as well as the U.S. Embassy in Amman.

We're learning more this morning about a series of attacks on police stations earlier this week in southern Thailand. One hundred eight militant fighters were killed, along with three policemen and two soldiers. Intelligence sources tell CNN the attacks were carried out by a new Islamic separatist group.

Our Maria Ressa has more in an exclusive report live from Manila -- good morning, Maria.

MARIA RESSA, CNN CORRESPONDENT: Good morning, Carol.

He said intelligence sources are telling us here that the attacks in southern Thailand, a series of escalating attacks that began last January, have been carried out by a group they called Pusaka. According to them, there are about 2,000 armed men who are part of this group. It is run with the same ideology as al Qaeda and its regional arm here in Southeast Asia, the Jama'at Islamia. In fact, the way these attacks have been carried out -- a series of well- coordinated, simultaneous attacks on police outposts and armories -- and the tactics they used to do that -- basically coordinating it so they can come out with weapons and ammunition -- those same tactics are very similar to what J.I., Jama'at Islamia, used in Ambon, Indonesia four years ago -- back to you, Carol.

COSTELLO: Maria Ressa reporting live from Manila, the Philippines, this morning.

Your news, money, weather and sports.

It is 5:14 Eastern.

Here's what's all new this morning.

And to progress in talks -- U.S. Marines said today they do plan to pull back from Fallujah into rural areas. No word, though, on exactly when that will happen.

American, Russian and Dutch crew members of the international space station are back on terra firma. Their Soyuz spacecraft touched down a few hours ago, right on target.

In money news, it looks like being connected to the Internet will remain tax-free. The Senate votes to renew a ban on taxing Internet access. The tax ban is for four years. The House wants a permanent ban.

And in sports, the Kentucky Derby kicks off a new tradition on Saturday. Jockeys may now have ads plastered on their uniforms. A judge blocked a state rule banning jockeys from wearing ads during races. So, gentlemen and ladies, start your horses.

In culture, Donald Trump is tying the knot for the third time. Trump proposed to long time girlfriend -- he proposed to his long time girlfriend this week. You see her right there. He gave her a serious bling-bling. No word on exactly how many carats -- Chad.

MYERS: Carol, did you say gentlemen, start your horses?

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Time to check the overseas markets.

Will it be another big day for results in Europe?

Let's head live to London and check in with Diana Muriel -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Yes, it is a big day for results. But it's also a dull and gloomy one weather-wise, and that sentiment seems to have crept into the markets. We're seeing rather a negative mood around. It's pretty flat in most of the main markets, except for Germany, which is lower, down around a quarter of a percentage point.

Time to digest some of these results, but also fears over the Chinese economy reigning itself in. And that's going to affect basic resource producers, particularly steel companies and, of course, the mining stocks, which we've seen falling in recent trade.

And for a look at the currencies, this has been doing rather better. The dollar strengthening overnight, particularly in Japan. It's standing at 110.24 there. That's really because the market seems to think that the U.S. is going to move to raise interest rates, perhaps by August, and that's good news for the dollar. It's also strengthening against the pound, which is at 177.08 or thereabouts at the moment, and against the euro, at 1956 at the moment. Now, the results season is well under way. We've seen two very big German companies coming in with their results. Deutsche Bank, which is the largest bank in Germany, they were down 2.46 percent on the back of its results, despite the fact that it came in with the best quarterly profit that that bank has seen in three years, first quarter net profit at $1.1 billion U.S.

The reason it's being sold off, analysts and investors just don't believe that Deutsche Bank can sustain that kind of improve going forward. They think their forecast for 2004 rather too optimistic.

Volkswagen the other big German company coming in with its results. The operating profit was at $389.1 million, just under half what it was this time last year. But that's -- the bad news seems to be behind it and the stock is up 1.34 percent in Germany -- back to you, Carol.

COSTELLO: Diana Muriel live from London this morning.

Coming up next on DAYBREAK...

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT: How often is the possibility of going to Iraq a deal breaker?

SGT. GREGORY DAVIS, U.S. ARMY: Quite often. It can be.

(END VIDEO CLIP)

COSTELLO: The Army is looking for a few good men and women to join their ranks. Find out why Generation Next is saying no.

And the decision to air the names of U.S. troops killed in Iraq is not sitting well with one broadcasting company. But what do you think? We want to hear from you. Our e-mail address is daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: A posthumous promotion for Pat Tillman. Of course, he's the former NFL player killed in Afghanistan last week. Tillman turned down a $3 million contract offer from the Arizona Cardinals to join the Army two years ago. Tillman, an Army Ranger, was killed when his patrol was ambushed near the Afghan-Pakistan border. Well, he was promoted posthumously from specialist to corporal.

We want to talk more about this "Nightline" flap, because it's becoming big, actually.

MYERS: Yes. Well, you know, you said this, you said a really good thing because I don't think, you don't think some of the viewers that are writing in know what's actually going on. They're not figuring it out. They're thinking ABC is preempting this. This is a one station ownership group. They own 62 TV stations, but seven of them happen to be ABC stations. That Sinclair ownership group is stopping "Nightline" from running tonight.

COSTELLO: In some pretty major cities -- Columbus, Ohio...

MYERS: Yes. Correct.

COSTELLO: Ashville, Winston-Salem...

MYERS: St. Louis.

COSTELLO: St. Louis and Springfield, Mass. And what's happening is Ted Koppel and "Nightline" are going to air the names one by one of the troops...

MYERS: And the pictures.

COSTELLO: And the pictures of the troops killed in Iraq.

MYERS: Right. Right.

COSTELLO: And it says it's doing that to honor the dead.

Sinclair Broadcasting, however, says, and I quote, "While Sinclair would support an honest effort to honor the memory of these brave soldiers, we do not believe that this is what 'Nightline' is doing."

MYERS: Correct.

COSTELLO: So that's why it's not allowing its stations to air the "Nightline" program tonight.

A caveat for you. According to campaign finance records...

MYERS: There you go.

COSTELLO: ... four of Sinclair's top executives each have given the maximum campaign contribution of $2,000 to the Bush-Cheney reelection campaign. The executives have not given a dime to John Kerry's campaign.

MYERS: Correct.

COSTELLO: So...

MYERS: So, do you have left and you have right? Of course you do.

Tom from Atlanta, Georgia: "Those who die for their country should be absolutely honored and their faces and names should be indelibly impressed on all of us who have benefited from their sacrifice."

From Jeff: "I emphatically disagree with Sinclair's broadcasting decision. It has everything to do with partisan politics." Of course it does. "I don't think it's right to prevent ABC's 'Nightline' from posting the names who died in Iraq as long as the families have given their consent." That was from Nora (ph). And I'm not sure that's happened, but I'm not sure that's anything to do with it.

COSTELLO: Well, keep them coming in.

MYERS: Please.

COSTELLO: Daybreak@cnn.com.

MYERS: OK.

COSTELLO: Take three and see -- the Army says it is meeting both its recruitment and retention goals. But with long overseas deployment and dangerous duty now the norm, the recruiters are working a lot harder.

CNN's Jason Bellini visited one of them here in Atlanta.

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT (voice-over): Army recruiter Sergeant Davis is close, very close, to signing Radar Williams (ph). Williams says he's decided he wants to be an infantryman.

DAVIS: It's a good decision and the best news I've heard all day so. BELLINI: Williams, a senior at Douglas High in Georgia, won't, however, sign on the dotted line just yet.

This year, Sergeant Davis admits the Army is a tougher deal to close. He can offer college tuition, signing bonuses and a wide range of job opportunities. What he can't offer are any assurances on Iraq.

(on camera): How often is the possibility of going to Iraq a deal breaker?

DAVIS: Quite often. It can be, based on the influence of their families, their friends, the people that they hang around. BELLINI (voice-over): Sheronda Menuer withdrew her application for the Air Force.

(on camera): So you almost signed up?

SHERONDA MENUER, HIGH SCHOOL SENIOR: Um-hmm. BELLINI: What changed your mind?

MENUER: The things he said and about the -- most of the part, or the down part. BELLINI (voice-over): Dr. Crystal Giddings is the student adviser. She says 18 seniors plan to join the military this year, as opposed to around 60 before the war.

CRYSTAL GIDDINGS, HIGH SCHOOL STUDENT ADVISER: In the past, if they were selecting a military option, they would say, you know, what are the benefits, the medical benefits? Are they going to pay for my college education? But now they're asking more serious questions such as if I make this decision, will I die early? BELLINI: The Army says it's still meeting its recruiting goals 100 percent.

DAVIS: You just have to work harder.

Well, welcome to the Army then. BELLINI: Williams shakes Sergeant Davis' hand...

WILLIAMS: I don't know. I'm still not sure. BELLINI: But then pulls back. He needs more time.

Jason Bellini, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: And here's what's all new in the next half hour of DAYBREAK.

Troops under fire in Najaf. As U.S. casualties pile up, the war's deadliest month. Jane Arraf gets pinned down on the front lines. Bush and Cheney appear before the 9/11 Commission, but with no cameras and no reporters. What impact will their testimony really have?

And later, why couples heading down the aisle are throwing tradition to the wind.

This is DAYBREAK for Friday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: What do the following things have in common -- refrigerators, Jay Leno and jet engines? Well, they're all part of General Electric. And the company has not stopped there. Subsidiary NBC recently purchased Universal Studios, which, in turn, owns theme parks and Cable Network USA. G.E. also acquired Envision Technologies, a leading bomb detection company.

And the sum of these parts? A number five spot in the Fortune 500 list.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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