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CNN Live At Daybreak

Tornado Damage in Midwest; Latest Fighting Between Insurgents, U.S. Troops; Reaction to President Bush's Speech in Baghdad

Aired May 25, 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: It is a hard day in the holy city of Najaf. We'll have the latest for you from Iraq.
It is Tuesday, May 25.

This is DAYBREAK.

And good morning to you.

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

Here are the headlines for you now.

A car bomb goes off in front of a Baghdad hotel. Iraqi police say four people were killed, but a U.S. Army official is disputing that. Iraqi officials suspect the nearby Australian embassy may have been the target.

A natural disaster in the Dominican Republic. One hundred people have been killed in flooding caused by heavy rains near the border with Haiti. Authorities fear the death toll could rise because nearly 200 people are still missing.

In money news, oil prices have eased somewhat in early trading. Still, the peak demand for gas in the United States is not expected until this weekend's Memorial Day holiday.

In sports, the Detroit Pistons 72, the Indiana Pacers 67. The Pistons had 19 blocks, one away from an NBA play-off record. Ooh, their defense is good. The Eastern Conference playoffs are now tied at one game each.

In culture, the Kennedy Profile In Courage Awards go to an Afghan doctor and two former law makers. The doctor defied the Taliban to provide health care and education to women. The former law makers were cited for their environmental standards.

And in the weather bulls eye, northwest Missouri and parts of Kansas were raked by several tornadoes. Some damage, but fortunately no deaths -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: Wow, over 50 tornadoes, Carol, and most of which were centered, it seems, in like a 100 mile radius of southern Iowa, northern Missouri and eastern Kansas and Nebraska.

And this cluster of storms, which is what caused all that action, is now heading eastward. And thankfully, it's weakening, and the conditions aren't quite as favorable today to see a tornado outbreak like we saw yesterday. But there will still be some severe weather and there's still some happening even this morning, as this line weakens as it heads through St. Louis and now through Indiana and about to push through the Ohio River Valley. And there's still a couple of severe thunderstorm watches out.

This one is about to expire, but just south of Kansas City, some bright colors showing up on the radar scope. Gusty winds and heavy rain through that part of the United States.

(WEATHER REPORT)

COSTELLO: A bombing in Baghdad this morning, but conflicting reports on casualties. And there is intense fighting now in Najaf.

But live to you now, live now to Baghdad and Guy Raz.

He has more details for us -- good morning.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Another day of violence here in the Iraqi capital. Another incident that's become all too familiar, both to residents here in Baghdad and to our viewers, of course. This time an explosion that took place outside of a hotel in south central Baghdad, a hotel called the al-Karma Hotel, at one time used for U.N. weapons inspectors and journalists.

We have conflicting reports, as you say, as to the number of casualties. At first there were reports that there were some -- about four people killed. Now we understand four possibly injured in that blast. And that attack took place just steps away from the Australian embassy here in the capital and also very close by to a hotel that's being used by Australian military officials.

Now, U.S. coalition forces are on the scene with Iraqi police investigating as to find out what actually happened this morning when that attack took place.

Meanwhile, Carol, in the southern Iraqi city of Najaf -- this has been the scene of violence and clashes between U.S. forces and a militia loyal to the radical Shiite cleric Muqtada al-Sadr for the past three weeks. We are hearing reports now that there was some type of explosion outside the Imam Ali Mosque in Najaf. Now, that's a very significant development if confirmed, because that mosque is the holiest mosque for Shiite Muslims around the world.

Now, we understand that earlier in the morning, U.S. forces attempted to enter the conj and clashed with suspected fighters, killing up to five of those fighters. And you'll recall, Carol, this mosque, this Imam Ali Mosque, really was at the heart, the beginning of a series of explosions and terrorist attacks that began in Iraq last August with the suicide explosion that killed a very prominent Shiite leader, Mohammad Baqir al-Hakeem, who was very close with the U.S. coalition forces here. We understand already that there have been some demonstrations outside that mosque, but we're awaiting word for more information -- Carol.

COSTELLO: Yes, I do understand. Jane Arraf is in Najaf. We're trying to get her on the phone. Hopefully she'll have more information for us.

I wanted to ask you before you had to go, though, about President Bush's speech and the reaction to his speech in Baghdad.

RAZ: Well, Carol, this speech took place in the early morning hours here in Baghdad, so very few Iraqis actually watched it live. But in reality, the words of President Bush carry very little currency among Iraqis. Now, the president is popular among members of the Governing Council. But when it comes to the people on the street, at least anecdotal evidence would seem to suggest the president is not widely popular here, although there were welcome signs coming from the president's suggestion that Abu Ghraib Prison be dismantled in the coming weeks and months -- Carol.

COSTELLO: Guy Raz reporting live for us from Baghdad.

Now, let's take a look at other developments in Iraq in our situation report.

Janis Karpinski, the Army general in charge of the U.S. prison guard accused of abusing Iraqis, has now been suspended. But she has not been charged with an offense.

President Bush says the notorious Abu Ghraib Prison will be demolished, as you heard Guy say, with the approval, though, of the Iraqi government. He says the U.S. will build a new maximum security prison to replace it.

And the top U.S. commander in Iraq, Lieutenant General Ricardo Sanchez, is being replaced. Pentagon officials say it's part of a normal rotation and is not a no confidence vote.

Did you see the president's speech last night? He says the U.S. is in Iraq for the long haul, or as long as it takes.

Our John King has details on the president's five point strategy for Iraq.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): At the Army War College, a commander-in-chief confronting mounting doubts about his war plan and his leadership.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must keep our focus. We must do our duty.

KING: But one new promise was aimed at easing the pain of the prisoner abuse scandal. BUSH: With the approval of the Iraqi government, we will demolish the Abu Ghraib Prison as a fitting symbol of Iraq's new beginning.

KING: That new beginning is detailed in a new United Nations resolution the United States and Britain circulated Monday. The draft resolution calls for a sovereign interim government by June 30 and elections to pick a transitional government no later than January, 2005; promises to train new Iraqi military and police forces, and in the meantime gives U.S. and other coalition troops authority to take all necessary measures to maintain security.

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American.

KING: The nearly 140,000 U.S. troops in Iraq now will stay after the transfer of sovereignty. And...

BUSH: If they need more troops, I will send them.

KING: The War College atmosphere was much more sober than the president's dramatic carrier visit a year ago to declare major combat in Iraq over. One hundred thirty-nine Americans had been killed in Iraq at that point. The death toll is nearly six times that now, and Mr. Bush's political standing has declined as doubts about his Iraq policy and mushroomed. Forty-seven percent of Americans now approve of how Mr. Bush is handling his job, down 13 points since January and down 22 points from a year ago.

This was the first of a series of speeches planned in the five weeks until the transfer of sovereignty.

(on camera): Missing from the speech was any date certain for bringing U.S. troops home. And so in the five months between now and election day, whether Mr. Bush has a clear exit strategy is likely to remain a major campaign debating point.

John King, CNN, Carlisle, Pennsylvania.

(END VIDEOTAPE)

COSTELLO: And as you might expect, John Kerry is reacting to the president's address. Kerry says President Bush needs to reach out to U.S. allies. I'm quoting here: "The president laid out general principles tonight, most of which we've heard before. What's most important now is to turn these words into action by offering presidential leadership to the nation and to the world."

Those words from John Kerry.

How do you feel about the presidential match up this fall? A CNN/"USA Today"/Gallup poll finds little change from a poll earlier this month. In a two way match up, Kerry gets support from 49 percent of likely voters. President Bush is favored by 47 percent. The margin of error here is plus or minus four percent. You can go to our Web site to keep up with the presidential race, as well as President Bush's plans for Iraq. You know the address, cnn.com.

More severe weather in the Midwest. It just does not stop. Iowa's governor adds more counties to his disaster declaration after heavy rains produce more flooding. Some areas have been hit with tornadoes, hail and up to nine inches of rain. The state is now asking for federal assistance in a total of 24 counties.

In Nebraska, more heavy storms threatened areas already cleaning up from earlier tornadoes. Debris from the devastated town of Hallam was found more than 20 miles away.

In Missouri, tornadoes knocked many homes off their foundations. Twisters also touched down in several counties in Kansas.

Several people were injured during those twisters in Missouri, including two little girls.

We get more on that story from Chris Ketz (ph) of CNN affiliate KNBC, reporting from Chillicothe, Missouri.

(BEGIN VIDEOTAPE)

CHRIS KETZ, KNBC CORRESPONDENT (voice-over): Picking up the pieces -- the Martins' mobile home just east of Chillicothe, wiped out. Friends, family, neighbors recovering what they can as the family's two little girls are at a nearby hospital.

UNIDENTIFIED MALE: He heard it. He was looking out and the lumber down there was in the air. He seen it and then he said about that time it just turned upside down the trailer.

KETZ: Neighbors had to rescue the Martins' two little girls, one stuck in what was left.

UNIDENTIFIED MALE: She was just pinned underneath there, just, she could see her, but she couldn't get out.

CARY GRANT: We had a weird feeling in the gut, couldn't really describe it.

KETZ: Cary Grant lives nearby. Not far from his house, a grain bin sits in the middle of 36 Highway east of Chillicothe. A semi trailer was pushed into a ditch just up the road. Two more illustrations of the kind of sporadic damage being reported throughout Livingston County.

GRANT: I've been through a lot of storms around here and just something told me to get the kids and get in the basement. The tornado sirens were going off.

KETZ: Call it a weird feeling in the air -- springtime in north central Missouri.

(END VIDEOTAPE)

COSTELLO: That report from Chris Ketz of CNN affiliate KNBC in Kansas City. Emergency managers in Missouri say FEMA crews are on the way now to assess the damage.

Time now for some other stories making news across America this Tuesday.

A few hours from now, defense attorneys in the Terry Nichols trial get their chance to make closing arguments. Then the case goes on to the jury. Nichols is charged with 161 counts of first degree murder in the Oklahoma City bombing. The judge in that case ruled that jurors cannot consider any lesser charges. If convicted, Nichols could face the death penalty.

California's Supreme Court is scheduled to hear arguments this morning over same-sex marriages in San Francisco. The court is expected to determine if Mayor Gavin Newsome overstepped his authority. San Francisco issued more than 4,000 marriage licenses to same sex couples.

Michael Jackson's father has hired another lawyer to keep an eye on the child molestation case against his son. Debra Opri says she was hired to sit in court with Joe Jackson and tell him what's going on. The next hearing in the Jackson case is set for Friday.

If you think going to the pump is a pain, perhaps some advice from a cabby might help. We'll hop a ride later this hour.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When me and my friend were on the MediVac car there, he grabbed me with his good hand and said, "Somebody's praying for us."

(END VIDEO CLIP)

COSTELLO: Riveting accounts of a fierce battle in Iraq directly from the Marines on the front lines.

And more and more kids on anti-depressants. But is the medicine good for them? We'll look at this growing trend.

You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

A car bomb has exploded near a hotel in Baghdad. Iraqi police say four people were killed in that blast. A CNN crew on the scene right now reports the hotel lobby was badly damaged, as well as nearby cars.

Former New York Stock Exchange CEO Richard Grasso is being used by New York Attorney General Eliot Spitzer. Spitzer argues Grasso's $188 million pay package was just too high. He wants Grasso to give back $100 million.

In money news, the nearly 100-year-old Spiegel catalog business is being sold to an investment firm for $31 million. Spiegel filed for Chapter 11 bankruptcy protection last year.

In sports, former French Open champ Andre Agassi was unceremoniously bounced in the tournament's first round. Ooh, it was ugly. Agassi, the six seed, lost in straight sets to French qualifier Jerome Haehnel, an unknown.

In culture, Madonna kicks off her world tour. She did it last night in Los Angeles. Her Reinvention Tour stops in 13 U.S. cities before heading off to Europe. It's her first world tour in three years.

I saw her last one, Rob.

MARCIANO: Did you? How was that show?

COSTELLO: It was terrific.

MARCIANO: Yes, I hear it's a good show.

COSTELLO: In the audience, women and gay men. That's it.

MARCIANO: A nice mix, no doubt.

Thanks, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

U.S. crude oil prices are easing a bit, but how is that affect the European markets?

For that, we head live to London and Mallika Kapur, who's checking the financial numbers for us -- good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: Morning, Carol.

You're right, oil prices are easing a little bit this Tuesday, but they still remain quite high, over $40, $41 a barrel, and that has unnerved investors here in Europe. As you can see, the main BORS in Europe have all opened lower this morning and we are about two hours into the trading day this Tuesday. And these markets are holding onto their losses.

Germany's DAX the worst hit at the moment, down 1 1/4 percent. Now, in Germany we also have the IFO Index out this morning, which is a survey of business confidence. And that has shown business confidence in Germany, which is, of course, Europe's largest economy, declining for the third month in a row. So higher oil prices and the fall in the IFO index all putting a dampener on European markets.

Now, we've also had some corporate news in today. We've had results from the mobile phone giant Vodafone. Its earnings for the full year matched expectations. Now, the company has also made a few important announcements today. It said it's increasing its share buyback program. But that hasn't been enough to please the market.

As you can see, its share price is down 4 1/2 percent, and that's because Vodafone says it's committed to its business in Japan and it's buying out minorities in its Japanese unit. But Vodafone Japan hasn't been doing that well. So its stock down about 4 1/2 percent -- Carol, back to you.

COSTELLO: Mallika Kapur reporting live from London.

The average price of gas now more than $2 a gallon. But I don't need to tell you that. I know, it's a pain at the pump, a pain in the wallet and a pain in the you know what. But after you take a taxi ride with CNN's Tom Forman, maybe, just maybe you won't feel so bad about what you're paying at the pump.

(BEGIN VIDEOTAPE)

TOM FORMAN, CNN CORRESPONDENT (voice-over): When the tourist season starts in Washington, George Muhawi's cab fills with extra passengers, his pockets with extra money. But high gas prices this year are costing him an extra $70 a week.

(on camera): What have these prices done to your business?

GEORGE MUHAWI, TAXI DRIVER: It really hits home, I mean, you know, because your investment is your time and your money. And seriously, when you work all day and you need a little extra gas, really, it hurts to go back to the gas station. So you might as well go home.

FORMAN (voice-over): Or to an economist, because economists will tell you if, since, say, the 1960s, the cost of gas had risen as fast as everything else, we would probably be paying $3 or $4 a gallon by now. Even AAA agrees.

MANTILL WILLIAMS, AMERICAN AUTOMOBILE ASSOCIATION: We are seeing a record level high gas prices right now. But if you factor in for inflation, the record would be in 1981, when we were paying $2.79 in today's dollars. Unfortunately, the motorist sees that $2 a gallon gasoline and he has to budget for that.

FORMAN: It could be worse. Europeans already pay $4 to $5 a gallon, although AAA points out that includes a lot of taxes. Drag racers here pay $18 a gallon for fuel and burn a gallon every half second. And that latte Americans love with their commute? That's about $30 a gallon. Maybe George has the right idea. MUHAWI: I am mad, but what is the use of hitting your head against the wall?

FORMAN: Tom Forman, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: I can't believe you spend that much on latte. I know I do. Soft drunk -- I meant to say soft drink lovers of the world, you can have your cake and eat it too, so to speak. Coming up, we'll tell you how Coke is making a splash in the low carb arena.

And a lion's tale unfolds in the Lone Star State. Why the appearance of this dynamic due is 20 years in the making. We've got all the details for you just ahead.

Stay with DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Before we get to our Eye-Openers of the morning, we have some news about a brand new Coke.

MARCIANO: And not the new Coke of the '80s, but...

COSTELLO: Oh, no, that was bad.

MARCIANO: That was bad, bad Coke.

COSTELLO: That was really bad. This is called C2, and it's supposed to be a soda low in carbs. And look who's introducing the new product, none other than Ryan Seacrest, Paula Abdul and I don't know who that other guy is. That's not even Ryan Seacrest.

MARCIANO: That's not even Ryan.

COSTELLO: Where is he?

MARCIANO: It's Paula Abdul.

COSTELLO: Well, I tell you, Ryan Seacrest is in the mix here somewhere. Anyway, this new product is marketed towards you, Rob.

MARCIANO: Men.

COSTELLO: Men.

MARCIANO: I hope men.

COSTELLO: Yes, men. Men between 20 and 40, because apparently they really buy into that Atkins thing. You know...

MARCIANO: Well, if I -- a lot of people, including myself or me, think that Coke may be a little too sweet and I need to put it over ice to kind of water it down a little bit. And now I won't have to do that. I can do without the ice because... COSTELLO: And you'll have low carbs and you can stick to the Atkins diet and life will be beautiful.

MARCIANO: It will be nice. I'm wondering how are they going to do it, though. Are they going to put, like, you know, Saccharine or whatever, Equal or...

COSTELLO: I don't know.

MARCIANO: Or just take some of the sugar out.

COSTELLO: They don't give the secret formula out or they'd have to kill you.

MARCIANO: Pepsi's coming out with something somewhere, right?

COSTELLO: Yes. So it's going to be a little war there between low carb sodas.

MARCIANO: And I'm sure the ads will run right here on CNN. We hope, at least.

COSTELLO: Yes, we hope, please, on DAYBREAK.

Time now for our DAYBREAK Eye-Openers.

Swimmers in St. Augustine, Florida are being told to watch out for sharks. There have been two confirmed shark attacks in the area, both involving 9-year-old children. Mekella Grogan (ph) swam away with 13 tooth marks in her ankle. Officials believe bait fish are swimming closer to shore, luring the sharks closer to the beach.

This toothsome pair met the public for the first time. The pair of female lion cubs were born at the Fort Worth Zoo in early April. They're the first cubs born at the zoo in nearly 20 years. The zoo is asking for help in picking names for the pair. Among the top choices so far, Lulu and Leila.

MARCIANO: Ummm, I like.

COSTELLO: Usually firefighters have to climb trees to rescue wayward kittens, but this time they had to go down the drain. The crying kitty was stuck in the storm drain for five days before firefighters were called in. They flooded the drain to force the feline to the surface. Ooh, I bet she didn't like that very much.

MARCIANO: No, but happier now, I'm sure.

COSTELLO: Yes, she's alive. Oh, look at her.

Some people may be taking "American Idol" a bit too seriously. Get this -- the governors of Georgia and North Carolina are urging residents to vote for their favorite daughters in the "Idol" finals. Diana DeGarmo is from Georgia and Fantasia Barrino is from North Carolina. The two face off in tonight's finale then viewers will be given four hours after the show to cast their vote. Are you going to vote?

MARCIANO: Well, I guess if the governor says we should vote, I guess I have to vote now.

COSTELLO: Being the good Georgian that you are.

Here's what's all new in the next half hour of DAYBREAK.

Children taking anti-depressants -- it's an alarming new trend, but do the benefits outweigh the risks?

An American lawyer accused of terrorism and then cleared of all charges -- how did an innocent man end up behind bars? We'll take a closer look.

And renewed violence in Baghdad overnight. We'll get the latest on the car bombing, on the latest car bombing, I should say, in a live report.

This is DAYBREAK for Tuesday.

(COMMERCIAL BREAK)

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Aired May 25, 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: It is a hard day in the holy city of Najaf. We'll have the latest for you from Iraq.
It is Tuesday, May 25.

This is DAYBREAK.

And good morning to you.

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

Here are the headlines for you now.

A car bomb goes off in front of a Baghdad hotel. Iraqi police say four people were killed, but a U.S. Army official is disputing that. Iraqi officials suspect the nearby Australian embassy may have been the target.

A natural disaster in the Dominican Republic. One hundred people have been killed in flooding caused by heavy rains near the border with Haiti. Authorities fear the death toll could rise because nearly 200 people are still missing.

In money news, oil prices have eased somewhat in early trading. Still, the peak demand for gas in the United States is not expected until this weekend's Memorial Day holiday.

In sports, the Detroit Pistons 72, the Indiana Pacers 67. The Pistons had 19 blocks, one away from an NBA play-off record. Ooh, their defense is good. The Eastern Conference playoffs are now tied at one game each.

In culture, the Kennedy Profile In Courage Awards go to an Afghan doctor and two former law makers. The doctor defied the Taliban to provide health care and education to women. The former law makers were cited for their environmental standards.

And in the weather bulls eye, northwest Missouri and parts of Kansas were raked by several tornadoes. Some damage, but fortunately no deaths -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: Wow, over 50 tornadoes, Carol, and most of which were centered, it seems, in like a 100 mile radius of southern Iowa, northern Missouri and eastern Kansas and Nebraska.

And this cluster of storms, which is what caused all that action, is now heading eastward. And thankfully, it's weakening, and the conditions aren't quite as favorable today to see a tornado outbreak like we saw yesterday. But there will still be some severe weather and there's still some happening even this morning, as this line weakens as it heads through St. Louis and now through Indiana and about to push through the Ohio River Valley. And there's still a couple of severe thunderstorm watches out.

This one is about to expire, but just south of Kansas City, some bright colors showing up on the radar scope. Gusty winds and heavy rain through that part of the United States.

(WEATHER REPORT)

COSTELLO: A bombing in Baghdad this morning, but conflicting reports on casualties. And there is intense fighting now in Najaf.

But live to you now, live now to Baghdad and Guy Raz.

He has more details for us -- good morning.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Another day of violence here in the Iraqi capital. Another incident that's become all too familiar, both to residents here in Baghdad and to our viewers, of course. This time an explosion that took place outside of a hotel in south central Baghdad, a hotel called the al-Karma Hotel, at one time used for U.N. weapons inspectors and journalists.

We have conflicting reports, as you say, as to the number of casualties. At first there were reports that there were some -- about four people killed. Now we understand four possibly injured in that blast. And that attack took place just steps away from the Australian embassy here in the capital and also very close by to a hotel that's being used by Australian military officials.

Now, U.S. coalition forces are on the scene with Iraqi police investigating as to find out what actually happened this morning when that attack took place.

Meanwhile, Carol, in the southern Iraqi city of Najaf -- this has been the scene of violence and clashes between U.S. forces and a militia loyal to the radical Shiite cleric Muqtada al-Sadr for the past three weeks. We are hearing reports now that there was some type of explosion outside the Imam Ali Mosque in Najaf. Now, that's a very significant development if confirmed, because that mosque is the holiest mosque for Shiite Muslims around the world.

Now, we understand that earlier in the morning, U.S. forces attempted to enter the conj and clashed with suspected fighters, killing up to five of those fighters. And you'll recall, Carol, this mosque, this Imam Ali Mosque, really was at the heart, the beginning of a series of explosions and terrorist attacks that began in Iraq last August with the suicide explosion that killed a very prominent Shiite leader, Mohammad Baqir al-Hakeem, who was very close with the U.S. coalition forces here. We understand already that there have been some demonstrations outside that mosque, but we're awaiting word for more information -- Carol.

COSTELLO: Yes, I do understand. Jane Arraf is in Najaf. We're trying to get her on the phone. Hopefully she'll have more information for us.

I wanted to ask you before you had to go, though, about President Bush's speech and the reaction to his speech in Baghdad.

RAZ: Well, Carol, this speech took place in the early morning hours here in Baghdad, so very few Iraqis actually watched it live. But in reality, the words of President Bush carry very little currency among Iraqis. Now, the president is popular among members of the Governing Council. But when it comes to the people on the street, at least anecdotal evidence would seem to suggest the president is not widely popular here, although there were welcome signs coming from the president's suggestion that Abu Ghraib Prison be dismantled in the coming weeks and months -- Carol.

COSTELLO: Guy Raz reporting live for us from Baghdad.

Now, let's take a look at other developments in Iraq in our situation report.

Janis Karpinski, the Army general in charge of the U.S. prison guard accused of abusing Iraqis, has now been suspended. But she has not been charged with an offense.

President Bush says the notorious Abu Ghraib Prison will be demolished, as you heard Guy say, with the approval, though, of the Iraqi government. He says the U.S. will build a new maximum security prison to replace it.

And the top U.S. commander in Iraq, Lieutenant General Ricardo Sanchez, is being replaced. Pentagon officials say it's part of a normal rotation and is not a no confidence vote.

Did you see the president's speech last night? He says the U.S. is in Iraq for the long haul, or as long as it takes.

Our John King has details on the president's five point strategy for Iraq.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): At the Army War College, a commander-in-chief confronting mounting doubts about his war plan and his leadership.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must keep our focus. We must do our duty.

KING: But one new promise was aimed at easing the pain of the prisoner abuse scandal. BUSH: With the approval of the Iraqi government, we will demolish the Abu Ghraib Prison as a fitting symbol of Iraq's new beginning.

KING: That new beginning is detailed in a new United Nations resolution the United States and Britain circulated Monday. The draft resolution calls for a sovereign interim government by June 30 and elections to pick a transitional government no later than January, 2005; promises to train new Iraqi military and police forces, and in the meantime gives U.S. and other coalition troops authority to take all necessary measures to maintain security.

BUSH: I sent American troops to Iraq to defend our security, not to stay as an occupying power. I sent American troops to Iraq to make its people free, not to make them American.

KING: The nearly 140,000 U.S. troops in Iraq now will stay after the transfer of sovereignty. And...

BUSH: If they need more troops, I will send them.

KING: The War College atmosphere was much more sober than the president's dramatic carrier visit a year ago to declare major combat in Iraq over. One hundred thirty-nine Americans had been killed in Iraq at that point. The death toll is nearly six times that now, and Mr. Bush's political standing has declined as doubts about his Iraq policy and mushroomed. Forty-seven percent of Americans now approve of how Mr. Bush is handling his job, down 13 points since January and down 22 points from a year ago.

This was the first of a series of speeches planned in the five weeks until the transfer of sovereignty.

(on camera): Missing from the speech was any date certain for bringing U.S. troops home. And so in the five months between now and election day, whether Mr. Bush has a clear exit strategy is likely to remain a major campaign debating point.

John King, CNN, Carlisle, Pennsylvania.

(END VIDEOTAPE)

COSTELLO: And as you might expect, John Kerry is reacting to the president's address. Kerry says President Bush needs to reach out to U.S. allies. I'm quoting here: "The president laid out general principles tonight, most of which we've heard before. What's most important now is to turn these words into action by offering presidential leadership to the nation and to the world."

Those words from John Kerry.

How do you feel about the presidential match up this fall? A CNN/"USA Today"/Gallup poll finds little change from a poll earlier this month. In a two way match up, Kerry gets support from 49 percent of likely voters. President Bush is favored by 47 percent. The margin of error here is plus or minus four percent. You can go to our Web site to keep up with the presidential race, as well as President Bush's plans for Iraq. You know the address, cnn.com.

More severe weather in the Midwest. It just does not stop. Iowa's governor adds more counties to his disaster declaration after heavy rains produce more flooding. Some areas have been hit with tornadoes, hail and up to nine inches of rain. The state is now asking for federal assistance in a total of 24 counties.

In Nebraska, more heavy storms threatened areas already cleaning up from earlier tornadoes. Debris from the devastated town of Hallam was found more than 20 miles away.

In Missouri, tornadoes knocked many homes off their foundations. Twisters also touched down in several counties in Kansas.

Several people were injured during those twisters in Missouri, including two little girls.

We get more on that story from Chris Ketz (ph) of CNN affiliate KNBC, reporting from Chillicothe, Missouri.

(BEGIN VIDEOTAPE)

CHRIS KETZ, KNBC CORRESPONDENT (voice-over): Picking up the pieces -- the Martins' mobile home just east of Chillicothe, wiped out. Friends, family, neighbors recovering what they can as the family's two little girls are at a nearby hospital.

UNIDENTIFIED MALE: He heard it. He was looking out and the lumber down there was in the air. He seen it and then he said about that time it just turned upside down the trailer.

KETZ: Neighbors had to rescue the Martins' two little girls, one stuck in what was left.

UNIDENTIFIED MALE: She was just pinned underneath there, just, she could see her, but she couldn't get out.

CARY GRANT: We had a weird feeling in the gut, couldn't really describe it.

KETZ: Cary Grant lives nearby. Not far from his house, a grain bin sits in the middle of 36 Highway east of Chillicothe. A semi trailer was pushed into a ditch just up the road. Two more illustrations of the kind of sporadic damage being reported throughout Livingston County.

GRANT: I've been through a lot of storms around here and just something told me to get the kids and get in the basement. The tornado sirens were going off.

KETZ: Call it a weird feeling in the air -- springtime in north central Missouri.

(END VIDEOTAPE)

COSTELLO: That report from Chris Ketz of CNN affiliate KNBC in Kansas City. Emergency managers in Missouri say FEMA crews are on the way now to assess the damage.

Time now for some other stories making news across America this Tuesday.

A few hours from now, defense attorneys in the Terry Nichols trial get their chance to make closing arguments. Then the case goes on to the jury. Nichols is charged with 161 counts of first degree murder in the Oklahoma City bombing. The judge in that case ruled that jurors cannot consider any lesser charges. If convicted, Nichols could face the death penalty.

California's Supreme Court is scheduled to hear arguments this morning over same-sex marriages in San Francisco. The court is expected to determine if Mayor Gavin Newsome overstepped his authority. San Francisco issued more than 4,000 marriage licenses to same sex couples.

Michael Jackson's father has hired another lawyer to keep an eye on the child molestation case against his son. Debra Opri says she was hired to sit in court with Joe Jackson and tell him what's going on. The next hearing in the Jackson case is set for Friday.

If you think going to the pump is a pain, perhaps some advice from a cabby might help. We'll hop a ride later this hour.

Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When me and my friend were on the MediVac car there, he grabbed me with his good hand and said, "Somebody's praying for us."

(END VIDEO CLIP)

COSTELLO: Riveting accounts of a fierce battle in Iraq directly from the Marines on the front lines.

And more and more kids on anti-depressants. But is the medicine good for them? We'll look at this growing trend.

You are watching DAYBREAK.

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COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

A car bomb has exploded near a hotel in Baghdad. Iraqi police say four people were killed in that blast. A CNN crew on the scene right now reports the hotel lobby was badly damaged, as well as nearby cars.

Former New York Stock Exchange CEO Richard Grasso is being used by New York Attorney General Eliot Spitzer. Spitzer argues Grasso's $188 million pay package was just too high. He wants Grasso to give back $100 million.

In money news, the nearly 100-year-old Spiegel catalog business is being sold to an investment firm for $31 million. Spiegel filed for Chapter 11 bankruptcy protection last year.

In sports, former French Open champ Andre Agassi was unceremoniously bounced in the tournament's first round. Ooh, it was ugly. Agassi, the six seed, lost in straight sets to French qualifier Jerome Haehnel, an unknown.

In culture, Madonna kicks off her world tour. She did it last night in Los Angeles. Her Reinvention Tour stops in 13 U.S. cities before heading off to Europe. It's her first world tour in three years.

I saw her last one, Rob.

MARCIANO: Did you? How was that show?

COSTELLO: It was terrific.

MARCIANO: Yes, I hear it's a good show.

COSTELLO: In the audience, women and gay men. That's it.

MARCIANO: A nice mix, no doubt.

Thanks, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

U.S. crude oil prices are easing a bit, but how is that affect the European markets?

For that, we head live to London and Mallika Kapur, who's checking the financial numbers for us -- good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: Morning, Carol.

You're right, oil prices are easing a little bit this Tuesday, but they still remain quite high, over $40, $41 a barrel, and that has unnerved investors here in Europe. As you can see, the main BORS in Europe have all opened lower this morning and we are about two hours into the trading day this Tuesday. And these markets are holding onto their losses.

Germany's DAX the worst hit at the moment, down 1 1/4 percent. Now, in Germany we also have the IFO Index out this morning, which is a survey of business confidence. And that has shown business confidence in Germany, which is, of course, Europe's largest economy, declining for the third month in a row. So higher oil prices and the fall in the IFO index all putting a dampener on European markets.

Now, we've also had some corporate news in today. We've had results from the mobile phone giant Vodafone. Its earnings for the full year matched expectations. Now, the company has also made a few important announcements today. It said it's increasing its share buyback program. But that hasn't been enough to please the market.

As you can see, its share price is down 4 1/2 percent, and that's because Vodafone says it's committed to its business in Japan and it's buying out minorities in its Japanese unit. But Vodafone Japan hasn't been doing that well. So its stock down about 4 1/2 percent -- Carol, back to you.

COSTELLO: Mallika Kapur reporting live from London.

The average price of gas now more than $2 a gallon. But I don't need to tell you that. I know, it's a pain at the pump, a pain in the wallet and a pain in the you know what. But after you take a taxi ride with CNN's Tom Forman, maybe, just maybe you won't feel so bad about what you're paying at the pump.

(BEGIN VIDEOTAPE)

TOM FORMAN, CNN CORRESPONDENT (voice-over): When the tourist season starts in Washington, George Muhawi's cab fills with extra passengers, his pockets with extra money. But high gas prices this year are costing him an extra $70 a week.

(on camera): What have these prices done to your business?

GEORGE MUHAWI, TAXI DRIVER: It really hits home, I mean, you know, because your investment is your time and your money. And seriously, when you work all day and you need a little extra gas, really, it hurts to go back to the gas station. So you might as well go home.

FORMAN (voice-over): Or to an economist, because economists will tell you if, since, say, the 1960s, the cost of gas had risen as fast as everything else, we would probably be paying $3 or $4 a gallon by now. Even AAA agrees.

MANTILL WILLIAMS, AMERICAN AUTOMOBILE ASSOCIATION: We are seeing a record level high gas prices right now. But if you factor in for inflation, the record would be in 1981, when we were paying $2.79 in today's dollars. Unfortunately, the motorist sees that $2 a gallon gasoline and he has to budget for that.

FORMAN: It could be worse. Europeans already pay $4 to $5 a gallon, although AAA points out that includes a lot of taxes. Drag racers here pay $18 a gallon for fuel and burn a gallon every half second. And that latte Americans love with their commute? That's about $30 a gallon. Maybe George has the right idea. MUHAWI: I am mad, but what is the use of hitting your head against the wall?

FORMAN: Tom Forman, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: I can't believe you spend that much on latte. I know I do. Soft drunk -- I meant to say soft drink lovers of the world, you can have your cake and eat it too, so to speak. Coming up, we'll tell you how Coke is making a splash in the low carb arena.

And a lion's tale unfolds in the Lone Star State. Why the appearance of this dynamic due is 20 years in the making. We've got all the details for you just ahead.

Stay with DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Before we get to our Eye-Openers of the morning, we have some news about a brand new Coke.

MARCIANO: And not the new Coke of the '80s, but...

COSTELLO: Oh, no, that was bad.

MARCIANO: That was bad, bad Coke.

COSTELLO: That was really bad. This is called C2, and it's supposed to be a soda low in carbs. And look who's introducing the new product, none other than Ryan Seacrest, Paula Abdul and I don't know who that other guy is. That's not even Ryan Seacrest.

MARCIANO: That's not even Ryan.

COSTELLO: Where is he?

MARCIANO: It's Paula Abdul.

COSTELLO: Well, I tell you, Ryan Seacrest is in the mix here somewhere. Anyway, this new product is marketed towards you, Rob.

MARCIANO: Men.

COSTELLO: Men.

MARCIANO: I hope men.

COSTELLO: Yes, men. Men between 20 and 40, because apparently they really buy into that Atkins thing. You know...

MARCIANO: Well, if I -- a lot of people, including myself or me, think that Coke may be a little too sweet and I need to put it over ice to kind of water it down a little bit. And now I won't have to do that. I can do without the ice because... COSTELLO: And you'll have low carbs and you can stick to the Atkins diet and life will be beautiful.

MARCIANO: It will be nice. I'm wondering how are they going to do it, though. Are they going to put, like, you know, Saccharine or whatever, Equal or...

COSTELLO: I don't know.

MARCIANO: Or just take some of the sugar out.

COSTELLO: They don't give the secret formula out or they'd have to kill you.

MARCIANO: Pepsi's coming out with something somewhere, right?

COSTELLO: Yes. So it's going to be a little war there between low carb sodas.

MARCIANO: And I'm sure the ads will run right here on CNN. We hope, at least.

COSTELLO: Yes, we hope, please, on DAYBREAK.

Time now for our DAYBREAK Eye-Openers.

Swimmers in St. Augustine, Florida are being told to watch out for sharks. There have been two confirmed shark attacks in the area, both involving 9-year-old children. Mekella Grogan (ph) swam away with 13 tooth marks in her ankle. Officials believe bait fish are swimming closer to shore, luring the sharks closer to the beach.

This toothsome pair met the public for the first time. The pair of female lion cubs were born at the Fort Worth Zoo in early April. They're the first cubs born at the zoo in nearly 20 years. The zoo is asking for help in picking names for the pair. Among the top choices so far, Lulu and Leila.

MARCIANO: Ummm, I like.

COSTELLO: Usually firefighters have to climb trees to rescue wayward kittens, but this time they had to go down the drain. The crying kitty was stuck in the storm drain for five days before firefighters were called in. They flooded the drain to force the feline to the surface. Ooh, I bet she didn't like that very much.

MARCIANO: No, but happier now, I'm sure.

COSTELLO: Yes, she's alive. Oh, look at her.

Some people may be taking "American Idol" a bit too seriously. Get this -- the governors of Georgia and North Carolina are urging residents to vote for their favorite daughters in the "Idol" finals. Diana DeGarmo is from Georgia and Fantasia Barrino is from North Carolina. The two face off in tonight's finale then viewers will be given four hours after the show to cast their vote. Are you going to vote?

MARCIANO: Well, I guess if the governor says we should vote, I guess I have to vote now.

COSTELLO: Being the good Georgian that you are.

Here's what's all new in the next half hour of DAYBREAK.

Children taking anti-depressants -- it's an alarming new trend, but do the benefits outweigh the risks?

An American lawyer accused of terrorism and then cleared of all charges -- how did an innocent man end up behind bars? We'll take a closer look.

And renewed violence in Baghdad overnight. We'll get the latest on the car bombing, on the latest car bombing, I should say, in a live report.

This is DAYBREAK for Tuesday.

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