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CNN Live At Daybreak
New Warnings About Possible Terror Attacks in U.S. During Summer; Latest Details on Handover of Power to Iraqis
Aired May 26, 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: The threat of terrorism -- is it coming your way? The FBI out with a new warning today.
It is Wednesday, May 26.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines right now.
Is Liberty in the bull's eye? Several U.S. officials say intelligence indicates a heightened concern for terrorist attacks in the United States this summer. The FBI will have more on this in its bulletin out today.
And the case of Terry Schiavo, a brain damaged Florida woman, moves into a Clearwater courtroom this afternoon. A judge will hold a hearing into visitation rights for her parents.
In money news, the sale of existing homes moved at a furious pace last month. The adjusted annual rate was more than six and a half million. That's the second best month ever for the sale of existing homes.
In sports, the Calgary Flames win their ninth road play-off game, beating the Tampa Bay Lightning in the first game of the Stanley Cup finals.
And in pop culture, instant fame is on the line. The voting is over and fans of "American Idol" will learn tonight if Dianna DeGarmo or Fantasia Barrino will win that coveted recording contract.
To the forecast center now. Chad is back.
CHAD MYERS, CNN CORRESPONDENT: Hey, Carol, I'm back.
COSTELLO: Welcome back.
We missed you.
MYERS: I know, and you know what? There's been a lot of severe weather when I was gone. Maybe I should have stayed.
COSTELLO: I know. We needed you.
MYERS: Wow! Yes.
(WEATHER REPORT)
COSTELLO: We start with America on alert and the potential for a summer wave of terrorism in America. FBI Director Robert Mueller and Attorney General John Ashcroft will hold a joint news conference later today to discuss the possibility.
Our justice correspondent Kelli Arena has details for you now, though.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT (voice-over): As Washington, D.C. prepares to secure the dedication of the WWII Memorial this weekend, U.S. officials confirm a steady stream of intelligence suggesting a major attack on U.S. soil, possibly as early as this summer.
JOHN MILLER, LOS ANGELES POLICE: And there has been a drumbeat behind that of information, of intelligence, talking about al Qaeda's continued desire to attack in the United States, either in a way that reflects the Madrid attack, against a soft public target, or in a way that falls into the September 11 paradigm.
ARENA: The fact that al Qaeda wants to hit the United States is not new. But officials say the level of corroboration has them concerned. They describe the intelligence as credible, but not very specific. No date, method or target mentioned.
Big cities that are hosting high profile events in coming months went out of their way to assure citizens everything possible is being done to disrupt any terror plans.
LT. KEVIN FOLEY, BOSTON POLICE: To this date, to this time, we have absolutely no credible information regarding a terrorist attack here in Boston. Obviously, we're going to continue to work with our state and federal law enforcement partners to closely monitor the possibility of a terrorist attack.
ARENA: Counter-terrorism forces tell CNN the FBI is likely to issue be on the lookout alerts for several individuals, but would not elaborate.
(on camera): U.S. officials have no plans at this time to raise the national threat level, but are expected to try to raise national awareness and to outline steps they're taking to prevent a future attack.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: And you can hear more about the potential for terrorist attacks from Homeland Security Secretary Tom Ridge. He'll appear in the seven o'clock Eastern hour of "American Morning" with Bill and Soledad.
Among those high profile events this summer, the Democratic and Republican Conventions. The Democrats will gather in Boston in July. A spokesperson for the Boston police says authorities are prepared.
(BEGIN VIDEO CLIP)
FOLEY: We've been planning for the DNC a year and a half now. Obviously, a terrorist attack was very high on our list as a possibility. So from day one, the Secret Service, Boston and all the other agencies involved in the DNC, law enforcement agencies, have been planning for the possibility that that may happen.
(END VIDEO CLIP)
COSTELLO: John Kerry says he can do a better job fighting terrorism than President Bush. Last night, Kerry was asked if gatherings such as political conventions will go forward in an era of such threats.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: You'd better believe it. As long as I'm involved in it, the terrorists will never shut down the democracy or the ability to function in this country, never. That's what they want and they'll never do it, period.
(END VIDEO CLIP)
COSTELLO: Kerry plans a speech on national security issues today.
The FBI has set up a pilot program to share counter-terrorism information with local police. The program is starting in New York State, but may expand to other cities and states if it proves successful. The FBI will allow New York's 70,000 police officers to access their database that's in a new intelligence center in a secret location near the state capital of Albany.
The terrorist network al Qaeda has an estimated 18,000 potential fighters. Read about that and the security precautions being taken for several high profile events this summer. Our address, cnn.com.
The new Iraqi government is starting to come together just over a month before the handover of power. Top administration officials say the new prime minister will likely be Hussain Sharistani, a Shiite Muslim nuclear scientist. Sharistani is one of two chief scientific advisers to Iraq's nuclear program. In 1978, he was appointed chief scientific adviser to the Iraqi Atomic Energy Commission. He was imprisoned for 12 years beginning in 1979 for refusing to take part in Saddam's weapons program.
And while Iraq's new government is being put together, there are questions about the relationship between the incoming government and the role of the U.S. military there.
Our Jamie McIntyre looks at that issue.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The plan to transfer sovereignty to Iraq raises questions about the amount of autonomy U.S. commanders will have and is creating some confusion about whether the interim Iraqi government will have veto power over U.S. military operations.
But what if as happened recently in Fallujah the U.S. wants to get tough and Iraq's interim leaders don't? Britain's prime minister suggests they would have a veto.
TONY BLAIR, BRITISH PRIME MINISTER: If there's a political decision as to whether you go into a place like Fallujah in a particular way that has to be done with the consent of the Iraqi government and the final political control remains with the Iraqi government. That's what the transfer of sovereignty means.
MCINTYRE: But the U.S. insists it will have the final say in launching military action.
COLIN POWELL, SECRETARY OF STATE: If it comes down to the United States Armed Forces protecting themselves or in some way accomplishing their mission in a way that might not be in total consonance with what the Iraqi interim government might want to do at a particular moment in time, U.S. forces remain under U.S. command and will do what is necessary to protect themselves.
MCINTYRE: After June 30th, the U.S. plans to reorganize the command structure in Iraq to improve coordination. A four-star general who sources say will be Army Vice Chief of Staff General George Casey will work alongside U.S. Ambassador John Negroponte. Under them will be Lieutenant General Thomas Metts (ph) who is now a deputy to Lieutenant General Ricardo Sanchez.
Pentagon officials insist Sanchez' rotation out of the top commander's job was in the cards all along and has nothing to do with his handling of the abuse of detainees at the Abu Ghraib Prison.
BRIG. GEN. MARK KIMMITT, COALITION MILITARY SPOKESMAN: We have always expected General Sanchez to depart sometime after sovereignty, transfer of sovereignty.
(END VIDEOTAPE)
COSTELLO: Time now for some stories making news across America this Wednesday.
In just a few hours, an Oklahoma jury will begin deliberations in the Terry Nichols murder case. Nichols is charged with 161 counts of first degree murder stemming from his involvement in the Oklahoma City bombing. If convicted, Nichols could face the death penalty.
Thousands of church goers in Boston are being forced to find a new place to worship. The Boston Archdiocese announces 65 parish closings, part of a massive restructuring. Church leaders blame a shortage of money and priests for the closings.
Firefighters have now controlled a chemical warehouse fire outside of Atlanta. Hundreds of homes were evacuated and about nine people had to go to the hospital. Many residents in the path of the toxic fumes have been told to stay inside. People more than 150 miles away are getting a whiff of the chlorine that was stored in this warehouse.
Just ahead on DAYBREAK, U.S. troops head from one global hot spot to another. But how is this reduced military presence playing out in South Korea? We're going to take you there live.
All right, this looks familiar. But these would be stars are not trying out in the United States. We'll tell you the new site for idol worship.
And everybody's favorite TV dad gets caught up in a controversy. Bill Cosby's comments sparked the question -- was he being racist or offering a dose of reality?
(COMMERCIAL BREAK)
COSTELLO: Now for a look at the effects of high gas prices, as if I need to tell you. Well, we do have new poll numbers. Fifty percent of Americans think there's no hope for lower gas prices. Also, nearly half of those polled say rising gas prices are causing some financial hardships. The high cost led 56 percent to say they will drive less this summer. The average price for a gallon of regular unleaded, $2.06.
Your news, money, weather and sports.
It is 5:13 Eastern time.
Here's what's all new this morning.
Human rights advocates are blasting the U.S. for the war on terror. In its annual report released just minutes ago, Amnesty International claims the actions against al Qaeda and Iraq have produced the greatest attack on human rights in 50 years.
Just a few hours ago, police in Japan arrested several people as part of an ongoing al Qaeda investigation. Police raided several homes looking for suspects who may have ties to the terrorist organization.
In money news, prescription drug prices are rising at surprising levels. Two leading consumer groups say prices of brand name medicines have risen at triple the rate of inflation.
In sports, the Cincinnati Reds won their seventh straight game thanks to a late home run by Ken Griffey, Jr. Griffey's last was his third in the last three games and moves him into 21st place on the all time home run list.
In culture, New York City Policeman Daniel Rodriguez is turning in his badge in order to pursue a singing career. Rodriguez first gained national attention for his singing talent at a September 11 prayer service. His first big gig will be the opera "La Boheme" in New Zealand next year.
MYERS: Thank goodness he's not going on "American Idol." I just, I had no idea what to think what he was going to do there. Good for him.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines.
Let's head overseas now for a look at what's happening in the European markets.
For that, we head to London and Mallika Kapur -- good morning, Mallika.
MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.
As you can see here, European markets are having a good session this Wednesday. The main markets in Europe opened higher this morning. We're about two hours into the trading session today and these markets are holding on to their gains.
It's a very different picture from what we saw here yesterday, when these bourses in Europe opened lower, maintained their losses and managed to close in the read.
Now, the European bourses are, of course, being cheered on, being encouraged by the gains we saw in overnight trading in Asia. The Nikkei in Japan closed up almost two percent. And, of course, they are also being encouraged, taking their lead from the gains we saw on Wall Street overnight. The Dow, the NASDAQ and the S&P all closing sharply higher.
Now, one of the reasons the markets around the world are higher is because the price of oil has been slipping. It is still high, still above $41 a barrel. But it has eased off a little bit compared to where it was a few days ago, and even lower than yesterday. And that is giving stocks around the world a boost.
Now, we've also had some results out here in Europe this morning, which is helping stocks. We've had results in the financial services sector. We've had results in from Munich Re, the German company which is the world's largest reinsurance, that its profits in the first quarter beat expectations. And that's because its insurance business, Ergo, which has been struggling, returned to a profit. Investors very happy with that news and that's given Munich Re a boost.
And Fortis, another insurance company, also reporting better than expected earnings results, which has lifted its stock, as well.
So that's really what's giving European markets a boost today -- back to you.
COSTELLO: All right, thank you.
Mallika Kapur reporting live from London.
It's a singing showdown months in the making. Oh, but only one can come out on top. Which of these two would be superstars will be the new American idol?
And this is "American Idol" Chinese style. With a yen for fame and a billion to one odds, some of China's best get ready for superstardom.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
COSTELLO: I see you're already drinking your gift this morning.
MYERS: I opened it because I had a -- I didn't know what to expect.
COSTELLO: Well, this is the new C2, Coca-Cola is putting out this soda with, what, half...
MYERS: C2.
COSTELLO: Oh, C2. what did I say?
MYERS: C2. That's all right, Edwards knew what you meant.
COSTELLO: Whatever, C2.
MYERS: Yes.
COSTELLO: This has half the sugar, half the calories, and half the carbs, which is the important thing, Mr. Atkins Diet.
MYERS: Yes, but there's still too many carbs for me to drink this.
COSTELLO: Really?
MYERS: Oh, absolutely. There's still 12 carbs in an eight ounce serving. And this is a 20 ounce serving. So there's two point...
COSTELLO: I don't think Coke is going to be happy to hear that.
MYERS: Well, this is not low carb. I mean, on a low carb diet, you've got to be like under 60 just to be in the maintenance schedule, right?
COSTELLO: Really?
MYERS: So here you're already looking at 30 carbs in this one bottle. And why would I do that? I love the taste of Diet Coke. There's no reason for me to put more calories in my body with this. But it's not bad. But it still has some sucrose and NutraSweet in it. It's just kind of cut.
COSTELLO: That's true. And that's not really good for you.
MYERS: It's kind of half and half.
COSTELLO: And in fairness, Pepsi is going to come out with its own low carb version. But we don't -- we think it's the same number of carbs.
MYERS: Yes.
COSTELLO: So I don't think you'll be drinking much Pepsi Edge either.
MYERS: But it tastes a lot more like Coke than it does Diet Coke.
COSTELLO: Nothing like the new Coke. Remember that debacle?
MYERS: Yes, I do. It's not bad.
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: So drink away. I'll go on with the news now.
MYERS: Fair enough.
COSTELLO: Time for our DAYBREAK Eye-Opener.
Uceba Babson has finally finished what she started. The 90-year- old woman got her high school diploma more than 70 years after leaving school to marry a vegetable farmer. Many of Babson's 81 children and grandchildren were on hand to see her graduate in West Palm Beach, Florida.
An Arkansas woman is way past a baker's dozen. Thirty-seven- year-old Michelle Duggar has given birth to her 15th child. Ah. The kids range in age from 16-year-old Joshua to the newborn she calls Jumping Jack. Duggar has two sets of twins and all of the kids have names starting with the letter J.
"American Idol" down to the final two. Supporters of finalist Fantasia Barrino gathered in her North Carolina hometown to watch and to vote, of course. And, of course, this is 16-year-old Georgia native Dianna DeGarmo. Georgia's governor hosted a viewing party for her fans. "Idol" fans from across the country were given four hours to cast their votes for the winning diva -- four hours after the show was over, I should say. We'll find out who won tonight. And in the second hour of DAYBREAK, we will take a closer look at the finalists and their future. We'll be joined by Tom O'Neill (ph) of "In Touch" magazine.
Americans aren't the only ones who have gone "Idol" crazy. Competitions in other countries are drawing record TV ratings, as well. In fact, at least 22 countries and territories are crowning their own idols. And now China has joined the idol worship.
CNN's Jaime FlorCruz has more for you.
(BEGIN VIDEOTAPE)
JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF (voice-over): Dressed up, made up and anxious to sing, aspiring to become the next singing sensation in this nation of 1 billion people.
This is China's version of "American Idol." Called "My Show 2004," it has attracted nearly 4,000 contestants who try to outbest each other with funky renditions of familiar songs and even cutting edge hairdos.
UNIDENTIFIED MALE (through translator): We want more people to know about our band and to showcase our talent.
FLORCRUZ: The most talented will pick up a $120,000 U.S. recording contract with Universal music, which is co-producing the show with its local partner.
HARRY HUI, UNIVERSAL MUSIC: When using a reality based singing competition coupled with a drama series, a story telling and a journey through the creation of a star, I think will be a very exciting programming concept for China.
FLORCRUZ (on camera): Why not? When you have million of singing idol wannabes getting opportunities to hone their skills in karaoke bars you are bound to have a huge pool of promising crooners. YMCA!
(voice-over): Nineteen-year-old Li Yixuan showed more promise. She was only one song away from making the next cut, except she may have chosen the wrong kind of song.
LI YIXUAN, CONTESTANT (through translator): When I started singeing a Chinese folk song, I overheard one of the judges whisper to another wondering what the heck I was singing. I guess they think pop idols should be singing only pop songs.
FLORCRUZ: The college freshman encountered the Chinese equivalent of Simon Cowell, the hyper-critical judge of "American Idol." She was booted out after the first round, leaving the top 100 contestants to vie for the top prize. But Li's soaring ambitions endure.
YIXUAN (through translator): hey said I'm not what they're looking for this time. But as long as I have talent I'll shine one day just like gold.
FLORCRUZ: She's already rehearsing for next season.
Jamie FlorCruz, CNN, Beijing.
(END VIDEOTAPE)
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
Officials have their eye on a leading candidate to head Iraq's new interim government. But who is Hussain Sharistani and why did he serve time in the Abu Ghraib Prison?
The FBI gets new foot soldiers in fighting the ground war on terror. But will it make catching terrorists any easier?
Plus...
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Please god, give us back our church.
(END VIDEO CLIP)
COSTELLO: More woes for the Catholic Church. Many Boston parishes are forced to close their doors.
This is DAYBREAK for Wednesday.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Let's face it, traveling by plane can be expensive. And with the recovering economy, the airline business is going through a changing of the guard. Low fare airlines like JetBlue and Southwest now account for nearly half of all passenger travel, according to a recent government report. And that increase in market share has translated into big dollars.
Both JetBlue and Southwest have posted profits in every quarter over the last two years.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COSTELLO: Is this the man in Iraq who can bring leadership to a nation in chaos?
It is Wednesday, May 26.
This is DAYBREAK.
And good morning to you.
Welcome to the second half hour of DAYBREAK.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Let me bring you up to date now.
Several U.S. officials say intelligence indicates a heightened concern for terrorist attacks in the United States this summer. The FBI will have more in its bulletin out today. In the Dominican Republic, at least 360 people are dead in the aftermath of massive flooding. Entire villages were wiped out when a river overflowed its bank after heavy rains.
In money news, now that Wal-Mart has taken over the suburbs, it wants to move into urban areas.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired May 26, 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: The threat of terrorism -- is it coming your way? The FBI out with a new warning today.
It is Wednesday, May 26.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines right now.
Is Liberty in the bull's eye? Several U.S. officials say intelligence indicates a heightened concern for terrorist attacks in the United States this summer. The FBI will have more on this in its bulletin out today.
And the case of Terry Schiavo, a brain damaged Florida woman, moves into a Clearwater courtroom this afternoon. A judge will hold a hearing into visitation rights for her parents.
In money news, the sale of existing homes moved at a furious pace last month. The adjusted annual rate was more than six and a half million. That's the second best month ever for the sale of existing homes.
In sports, the Calgary Flames win their ninth road play-off game, beating the Tampa Bay Lightning in the first game of the Stanley Cup finals.
And in pop culture, instant fame is on the line. The voting is over and fans of "American Idol" will learn tonight if Dianna DeGarmo or Fantasia Barrino will win that coveted recording contract.
To the forecast center now. Chad is back.
CHAD MYERS, CNN CORRESPONDENT: Hey, Carol, I'm back.
COSTELLO: Welcome back.
We missed you.
MYERS: I know, and you know what? There's been a lot of severe weather when I was gone. Maybe I should have stayed.
COSTELLO: I know. We needed you.
MYERS: Wow! Yes.
(WEATHER REPORT)
COSTELLO: We start with America on alert and the potential for a summer wave of terrorism in America. FBI Director Robert Mueller and Attorney General John Ashcroft will hold a joint news conference later today to discuss the possibility.
Our justice correspondent Kelli Arena has details for you now, though.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT (voice-over): As Washington, D.C. prepares to secure the dedication of the WWII Memorial this weekend, U.S. officials confirm a steady stream of intelligence suggesting a major attack on U.S. soil, possibly as early as this summer.
JOHN MILLER, LOS ANGELES POLICE: And there has been a drumbeat behind that of information, of intelligence, talking about al Qaeda's continued desire to attack in the United States, either in a way that reflects the Madrid attack, against a soft public target, or in a way that falls into the September 11 paradigm.
ARENA: The fact that al Qaeda wants to hit the United States is not new. But officials say the level of corroboration has them concerned. They describe the intelligence as credible, but not very specific. No date, method or target mentioned.
Big cities that are hosting high profile events in coming months went out of their way to assure citizens everything possible is being done to disrupt any terror plans.
LT. KEVIN FOLEY, BOSTON POLICE: To this date, to this time, we have absolutely no credible information regarding a terrorist attack here in Boston. Obviously, we're going to continue to work with our state and federal law enforcement partners to closely monitor the possibility of a terrorist attack.
ARENA: Counter-terrorism forces tell CNN the FBI is likely to issue be on the lookout alerts for several individuals, but would not elaborate.
(on camera): U.S. officials have no plans at this time to raise the national threat level, but are expected to try to raise national awareness and to outline steps they're taking to prevent a future attack.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: And you can hear more about the potential for terrorist attacks from Homeland Security Secretary Tom Ridge. He'll appear in the seven o'clock Eastern hour of "American Morning" with Bill and Soledad.
Among those high profile events this summer, the Democratic and Republican Conventions. The Democrats will gather in Boston in July. A spokesperson for the Boston police says authorities are prepared.
(BEGIN VIDEO CLIP)
FOLEY: We've been planning for the DNC a year and a half now. Obviously, a terrorist attack was very high on our list as a possibility. So from day one, the Secret Service, Boston and all the other agencies involved in the DNC, law enforcement agencies, have been planning for the possibility that that may happen.
(END VIDEO CLIP)
COSTELLO: John Kerry says he can do a better job fighting terrorism than President Bush. Last night, Kerry was asked if gatherings such as political conventions will go forward in an era of such threats.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: You'd better believe it. As long as I'm involved in it, the terrorists will never shut down the democracy or the ability to function in this country, never. That's what they want and they'll never do it, period.
(END VIDEO CLIP)
COSTELLO: Kerry plans a speech on national security issues today.
The FBI has set up a pilot program to share counter-terrorism information with local police. The program is starting in New York State, but may expand to other cities and states if it proves successful. The FBI will allow New York's 70,000 police officers to access their database that's in a new intelligence center in a secret location near the state capital of Albany.
The terrorist network al Qaeda has an estimated 18,000 potential fighters. Read about that and the security precautions being taken for several high profile events this summer. Our address, cnn.com.
The new Iraqi government is starting to come together just over a month before the handover of power. Top administration officials say the new prime minister will likely be Hussain Sharistani, a Shiite Muslim nuclear scientist. Sharistani is one of two chief scientific advisers to Iraq's nuclear program. In 1978, he was appointed chief scientific adviser to the Iraqi Atomic Energy Commission. He was imprisoned for 12 years beginning in 1979 for refusing to take part in Saddam's weapons program.
And while Iraq's new government is being put together, there are questions about the relationship between the incoming government and the role of the U.S. military there.
Our Jamie McIntyre looks at that issue.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The plan to transfer sovereignty to Iraq raises questions about the amount of autonomy U.S. commanders will have and is creating some confusion about whether the interim Iraqi government will have veto power over U.S. military operations.
But what if as happened recently in Fallujah the U.S. wants to get tough and Iraq's interim leaders don't? Britain's prime minister suggests they would have a veto.
TONY BLAIR, BRITISH PRIME MINISTER: If there's a political decision as to whether you go into a place like Fallujah in a particular way that has to be done with the consent of the Iraqi government and the final political control remains with the Iraqi government. That's what the transfer of sovereignty means.
MCINTYRE: But the U.S. insists it will have the final say in launching military action.
COLIN POWELL, SECRETARY OF STATE: If it comes down to the United States Armed Forces protecting themselves or in some way accomplishing their mission in a way that might not be in total consonance with what the Iraqi interim government might want to do at a particular moment in time, U.S. forces remain under U.S. command and will do what is necessary to protect themselves.
MCINTYRE: After June 30th, the U.S. plans to reorganize the command structure in Iraq to improve coordination. A four-star general who sources say will be Army Vice Chief of Staff General George Casey will work alongside U.S. Ambassador John Negroponte. Under them will be Lieutenant General Thomas Metts (ph) who is now a deputy to Lieutenant General Ricardo Sanchez.
Pentagon officials insist Sanchez' rotation out of the top commander's job was in the cards all along and has nothing to do with his handling of the abuse of detainees at the Abu Ghraib Prison.
BRIG. GEN. MARK KIMMITT, COALITION MILITARY SPOKESMAN: We have always expected General Sanchez to depart sometime after sovereignty, transfer of sovereignty.
(END VIDEOTAPE)
COSTELLO: Time now for some stories making news across America this Wednesday.
In just a few hours, an Oklahoma jury will begin deliberations in the Terry Nichols murder case. Nichols is charged with 161 counts of first degree murder stemming from his involvement in the Oklahoma City bombing. If convicted, Nichols could face the death penalty.
Thousands of church goers in Boston are being forced to find a new place to worship. The Boston Archdiocese announces 65 parish closings, part of a massive restructuring. Church leaders blame a shortage of money and priests for the closings.
Firefighters have now controlled a chemical warehouse fire outside of Atlanta. Hundreds of homes were evacuated and about nine people had to go to the hospital. Many residents in the path of the toxic fumes have been told to stay inside. People more than 150 miles away are getting a whiff of the chlorine that was stored in this warehouse.
Just ahead on DAYBREAK, U.S. troops head from one global hot spot to another. But how is this reduced military presence playing out in South Korea? We're going to take you there live.
All right, this looks familiar. But these would be stars are not trying out in the United States. We'll tell you the new site for idol worship.
And everybody's favorite TV dad gets caught up in a controversy. Bill Cosby's comments sparked the question -- was he being racist or offering a dose of reality?
(COMMERCIAL BREAK)
COSTELLO: Now for a look at the effects of high gas prices, as if I need to tell you. Well, we do have new poll numbers. Fifty percent of Americans think there's no hope for lower gas prices. Also, nearly half of those polled say rising gas prices are causing some financial hardships. The high cost led 56 percent to say they will drive less this summer. The average price for a gallon of regular unleaded, $2.06.
Your news, money, weather and sports.
It is 5:13 Eastern time.
Here's what's all new this morning.
Human rights advocates are blasting the U.S. for the war on terror. In its annual report released just minutes ago, Amnesty International claims the actions against al Qaeda and Iraq have produced the greatest attack on human rights in 50 years.
Just a few hours ago, police in Japan arrested several people as part of an ongoing al Qaeda investigation. Police raided several homes looking for suspects who may have ties to the terrorist organization.
In money news, prescription drug prices are rising at surprising levels. Two leading consumer groups say prices of brand name medicines have risen at triple the rate of inflation.
In sports, the Cincinnati Reds won their seventh straight game thanks to a late home run by Ken Griffey, Jr. Griffey's last was his third in the last three games and moves him into 21st place on the all time home run list.
In culture, New York City Policeman Daniel Rodriguez is turning in his badge in order to pursue a singing career. Rodriguez first gained national attention for his singing talent at a September 11 prayer service. His first big gig will be the opera "La Boheme" in New Zealand next year.
MYERS: Thank goodness he's not going on "American Idol." I just, I had no idea what to think what he was going to do there. Good for him.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines.
Let's head overseas now for a look at what's happening in the European markets.
For that, we head to London and Mallika Kapur -- good morning, Mallika.
MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.
As you can see here, European markets are having a good session this Wednesday. The main markets in Europe opened higher this morning. We're about two hours into the trading session today and these markets are holding on to their gains.
It's a very different picture from what we saw here yesterday, when these bourses in Europe opened lower, maintained their losses and managed to close in the read.
Now, the European bourses are, of course, being cheered on, being encouraged by the gains we saw in overnight trading in Asia. The Nikkei in Japan closed up almost two percent. And, of course, they are also being encouraged, taking their lead from the gains we saw on Wall Street overnight. The Dow, the NASDAQ and the S&P all closing sharply higher.
Now, one of the reasons the markets around the world are higher is because the price of oil has been slipping. It is still high, still above $41 a barrel. But it has eased off a little bit compared to where it was a few days ago, and even lower than yesterday. And that is giving stocks around the world a boost.
Now, we've also had some results out here in Europe this morning, which is helping stocks. We've had results in the financial services sector. We've had results in from Munich Re, the German company which is the world's largest reinsurance, that its profits in the first quarter beat expectations. And that's because its insurance business, Ergo, which has been struggling, returned to a profit. Investors very happy with that news and that's given Munich Re a boost.
And Fortis, another insurance company, also reporting better than expected earnings results, which has lifted its stock, as well.
So that's really what's giving European markets a boost today -- back to you.
COSTELLO: All right, thank you.
Mallika Kapur reporting live from London.
It's a singing showdown months in the making. Oh, but only one can come out on top. Which of these two would be superstars will be the new American idol?
And this is "American Idol" Chinese style. With a yen for fame and a billion to one odds, some of China's best get ready for superstardom.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
COSTELLO: I see you're already drinking your gift this morning.
MYERS: I opened it because I had a -- I didn't know what to expect.
COSTELLO: Well, this is the new C2, Coca-Cola is putting out this soda with, what, half...
MYERS: C2.
COSTELLO: Oh, C2. what did I say?
MYERS: C2. That's all right, Edwards knew what you meant.
COSTELLO: Whatever, C2.
MYERS: Yes.
COSTELLO: This has half the sugar, half the calories, and half the carbs, which is the important thing, Mr. Atkins Diet.
MYERS: Yes, but there's still too many carbs for me to drink this.
COSTELLO: Really?
MYERS: Oh, absolutely. There's still 12 carbs in an eight ounce serving. And this is a 20 ounce serving. So there's two point...
COSTELLO: I don't think Coke is going to be happy to hear that.
MYERS: Well, this is not low carb. I mean, on a low carb diet, you've got to be like under 60 just to be in the maintenance schedule, right?
COSTELLO: Really?
MYERS: So here you're already looking at 30 carbs in this one bottle. And why would I do that? I love the taste of Diet Coke. There's no reason for me to put more calories in my body with this. But it's not bad. But it still has some sucrose and NutraSweet in it. It's just kind of cut.
COSTELLO: That's true. And that's not really good for you.
MYERS: It's kind of half and half.
COSTELLO: And in fairness, Pepsi is going to come out with its own low carb version. But we don't -- we think it's the same number of carbs.
MYERS: Yes.
COSTELLO: So I don't think you'll be drinking much Pepsi Edge either.
MYERS: But it tastes a lot more like Coke than it does Diet Coke.
COSTELLO: Nothing like the new Coke. Remember that debacle?
MYERS: Yes, I do. It's not bad.
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: So drink away. I'll go on with the news now.
MYERS: Fair enough.
COSTELLO: Time for our DAYBREAK Eye-Opener.
Uceba Babson has finally finished what she started. The 90-year- old woman got her high school diploma more than 70 years after leaving school to marry a vegetable farmer. Many of Babson's 81 children and grandchildren were on hand to see her graduate in West Palm Beach, Florida.
An Arkansas woman is way past a baker's dozen. Thirty-seven- year-old Michelle Duggar has given birth to her 15th child. Ah. The kids range in age from 16-year-old Joshua to the newborn she calls Jumping Jack. Duggar has two sets of twins and all of the kids have names starting with the letter J.
"American Idol" down to the final two. Supporters of finalist Fantasia Barrino gathered in her North Carolina hometown to watch and to vote, of course. And, of course, this is 16-year-old Georgia native Dianna DeGarmo. Georgia's governor hosted a viewing party for her fans. "Idol" fans from across the country were given four hours to cast their votes for the winning diva -- four hours after the show was over, I should say. We'll find out who won tonight. And in the second hour of DAYBREAK, we will take a closer look at the finalists and their future. We'll be joined by Tom O'Neill (ph) of "In Touch" magazine.
Americans aren't the only ones who have gone "Idol" crazy. Competitions in other countries are drawing record TV ratings, as well. In fact, at least 22 countries and territories are crowning their own idols. And now China has joined the idol worship.
CNN's Jaime FlorCruz has more for you.
(BEGIN VIDEOTAPE)
JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF (voice-over): Dressed up, made up and anxious to sing, aspiring to become the next singing sensation in this nation of 1 billion people.
This is China's version of "American Idol." Called "My Show 2004," it has attracted nearly 4,000 contestants who try to outbest each other with funky renditions of familiar songs and even cutting edge hairdos.
UNIDENTIFIED MALE (through translator): We want more people to know about our band and to showcase our talent.
FLORCRUZ: The most talented will pick up a $120,000 U.S. recording contract with Universal music, which is co-producing the show with its local partner.
HARRY HUI, UNIVERSAL MUSIC: When using a reality based singing competition coupled with a drama series, a story telling and a journey through the creation of a star, I think will be a very exciting programming concept for China.
FLORCRUZ (on camera): Why not? When you have million of singing idol wannabes getting opportunities to hone their skills in karaoke bars you are bound to have a huge pool of promising crooners. YMCA!
(voice-over): Nineteen-year-old Li Yixuan showed more promise. She was only one song away from making the next cut, except she may have chosen the wrong kind of song.
LI YIXUAN, CONTESTANT (through translator): When I started singeing a Chinese folk song, I overheard one of the judges whisper to another wondering what the heck I was singing. I guess they think pop idols should be singing only pop songs.
FLORCRUZ: The college freshman encountered the Chinese equivalent of Simon Cowell, the hyper-critical judge of "American Idol." She was booted out after the first round, leaving the top 100 contestants to vie for the top prize. But Li's soaring ambitions endure.
YIXUAN (through translator): hey said I'm not what they're looking for this time. But as long as I have talent I'll shine one day just like gold.
FLORCRUZ: She's already rehearsing for next season.
Jamie FlorCruz, CNN, Beijing.
(END VIDEOTAPE)
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
Officials have their eye on a leading candidate to head Iraq's new interim government. But who is Hussain Sharistani and why did he serve time in the Abu Ghraib Prison?
The FBI gets new foot soldiers in fighting the ground war on terror. But will it make catching terrorists any easier?
Plus...
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Please god, give us back our church.
(END VIDEO CLIP)
COSTELLO: More woes for the Catholic Church. Many Boston parishes are forced to close their doors.
This is DAYBREAK for Wednesday.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT: Let's face it, traveling by plane can be expensive. And with the recovering economy, the airline business is going through a changing of the guard. Low fare airlines like JetBlue and Southwest now account for nearly half of all passenger travel, according to a recent government report. And that increase in market share has translated into big dollars.
Both JetBlue and Southwest have posted profits in every quarter over the last two years.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COSTELLO: Is this the man in Iraq who can bring leadership to a nation in chaos?
It is Wednesday, May 26.
This is DAYBREAK.
And good morning to you.
Welcome to the second half hour of DAYBREAK.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Let me bring you up to date now.
Several U.S. officials say intelligence indicates a heightened concern for terrorist attacks in the United States this summer. The FBI will have more in its bulletin out today. In the Dominican Republic, at least 360 people are dead in the aftermath of massive flooding. Entire villages were wiped out when a river overflowed its bank after heavy rains.
In money news, now that Wal-Mart has taken over the suburbs, it wants to move into urban areas.
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