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CNN Live At Daybreak
New Terror Warnings From U.S. Authorities; Who Will Provide security for the Interim Iraqi Government?
Aired May 27, 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: Have you seen this American convert to Islam? The FBI says he could be working for al Qaeda.
It's Thursday, May 27.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines for you now.
An offer to end weeks of fighting in the Iraqi holy city of Najaf. A radical Shiite cleric is making the offer, but U.S. military commanders say his proposal is similar to previous ones and they are skeptical this morning.
Police sources say radical Muslim cleric Abu Hamza al-Masri has been arrested in London. Al-Masri, accused of supporting al Qaeda, reportedly is scheduled to appear at a court hearing today. Washington wants him extradited.
In money news, United Airlines is feeling the pressure from high oil prices. The nation's second largest airline says it's raising its fuel surcharge by $5 per flight.
In sports, the "Rocky Mountain News" reports that University of Colorado football coach Gary Barnett is expected to keep his job. The football program has been investigated for using sex, drugs and alcohol to attract recruits.
In pop culture, you just knew it. Fantasia, ah, I should have let him announce it, Ryan Seacrest. But Fantasia is America's newest "American Idol" winner. She edges out Diana DeGarmo for a recording contract and instant celebrity status.
Although, I think, Chad, both of them have that already.
CHAD MYERS, CNN CORRESPONDENT: Yes, even like the third and fourth place people now, you know? It's just that everybody is watching so much that even if you hang around at all you're in pretty good shape.
(WEATHER REPORT) COSTELLO: The concern this morning, terrorism at home. A special FBI task force is looking for terrorists here in America. Also, the FBI and the attorney general are warning the nation's law enforcement agencies to be on alert. Al Qaeda may be planning something big.
Kelli Arena has more for you.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT (voice-over): A series of high profile public events, including the dedication of the WWII Memorial, the economic summit on Sea Island, Georgia, and, of course, the political conventions, adding to the concern about possible terror attacks on U.S. soil.
JOHN ASHCROFT, ATTORNEY GENERAL: Credible intelligence from multiple sources indicates that al Qaeda plans to attempt an attack on the United States in the next few months. Now, this disturbing intelligence indicates al Qaeda's specific intention to hit the United States hard.
ARENA: The attorney general cited public statements, saying al Qaeda is 90 percent ready for an attack, which experts trace back to a shadowy group, the Abu Hafs al-Masri Brigades. Some question the group's credibility. Still, the attorney general says intelligence suggests the impact the Madrid train bombings had on the Spanish elections could lead to similar action here. But he said the government has no specifics.
So what are officials doing about it?
There is a special task force. Agents are checking in with sources and informants and the FBI will conduct nationwide interviews seeking intelligence information.
ROBERT MUELLER, FBI DIRECTOR: Information about persons that may have moved into the country recently, persons who seem to be in a community without any roots.
ARENA: The FBI also issuing a new be on the lookout for this man, Adam Yahiye Gadahn, a U.S. citizen wanted for questioning regarding possible threats against the United States. The Bureau also reissued alerts for six others.
As Mueller and Ashcroft were issuing dire warnings, a strikingly different tone from the secretary of homeland security, Tom Ridge.
TOM RIDGE, HOMELAND SECURITY SECRETARY: There's a consistent reporting stream -- they're here, they're not here, they're on their way, the possibility of attack might be at this point in time, might be a couple months down the road.
ARENA (on camera): Ridge says he's not as concerned now as he was over the Christmas holiday, for example, when the threat level was raised to orange. And he says there are no plans to raise it this time.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: And Kelli talked about the FBI search for Adam Gadahn in her report. Gadahn is a U.S. citizen who converted to Islam. This is home video. Gadahn is on the right in the white shirt. It's believed this was taken while he was still in high school. The FBI says he is associated with Abu Zubaydah in Pakistan and attended terrorist training camps in Afghanistan. The agency adds that Gadahn performed translations for al Qaeda. His father, he hasn't seen him in years.
(BEGIN VIDEO CLIP)
PHILLIP GADAHN, FATHER: I knew he'd been out of the country and -- but I thought he was settling down. I didn't imagine that he was -- would be involved in anything like what they're thinking he might be. But I don't -- I'm not sure that the FBI really thinks that.
I really don't know much because I haven't seen him for several years and he just, he sort of detached. He went off and did his own thing. And that's just kind of the way he is.
(END VIDEO CLIP)
COSTELLO: The search for terrorist suspects, protecting the public and security plans for the dedication this weekend of the WWII Memorial -- D.C. Police Chief Charles Ramsey will talk about all of that on "American Morning." That comes your say at 7:00 Eastern.
Here's our Iraq situation report for you this morning.
Radical cleric Muqtada al-Sadr says he will withdraw most of his militiamen from Najaf if coalition troops will leave the city. Coalition commanders are skeptical that al-Sadr will keep his word and they plan to continue their operations at Najaf.
There are more American casualties in the war. Three U.S. Marines were killed in action in al-Anbar Province west of Baghdad. Details not immediately available. The deaths bring the American toll in Iraq to 805.
Iraqi nuclear scientist Hussain al-Shahristani has been a favorite for a top job with the new interim Iraqi government, maybe even prime minister. But Shahristani has told a U.N. envoy he doesn't want that job or any other government post.
That interim Iraqi government is scheduled to take power just 34 days from now. And who will provide security for it in a dangerous country?
That issue is a prime topic at the Pentagon, where Jamie McIntyre is our senior correspondent. He has more for you.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): When U.S. Marines had to call off their offensive in Fallujah last month because of the objections of Iraq's Governing Council, to many it seemed like a defeat.
But now the Pentagon says allowing former members of Saddam's army to patrol the town is a model for the flexibility that will be required after the transfer of sovereignty. Marine Corps Commandant General Michael Hagee.
GEN. MICHAEL HAGEE, MARINE CORPS COMMANDANT: If that's a defeat, we need more defeats like that.
MCINTYRE: In his Monday speech, President Bush said the U.S. would accelerate the training of 260,000 Iraqis to form the lynchpin of a homegrown security force but critics in Congress, such as Democratic Senator Joseph Biden, charge the number and effectiveness of those U.S.-trained forces is consistently overstated.
SEN. JOSEPH BIDEN (D), FOREIGN RELATIONS COMMITTEE: I mean this malarkey you guys came up with, you got 200,000 trained Iraqis, I mean every single solitary expert, including your guys that we met with in Iraq, said it's going to take three years to train 40,000 Iraqi military.
MCINTYRE: Not to mention that when U.S. commanders ordered some of those Iraqis into battle many refused to fight. The administration hopes that after June 30th with Iraqis in charge their resolve will stiffen.
RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: These Iraqi forces who have fought in many cases valiantly will no longer be fighting for the occupiers. They're going to be fighting for Iraq.
MCINTYRE: Army Colonel Paul Hughes, a professor at the National Defense University, believes imposing order is job one, especially with Iraq's elections coming up.
COL. PAUL HUGHES, NATIONAL DEFENSE UNIVERSITY: If we fail in providing security at those particular junctures I think that we're going to have a significant setback in seeing a viable Iraqi government established.
MCINTYRE: Hughes and many others in the military believe ultimately that will require significantly more U.S. troops than the 138,000 currently in Iraq.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If they need more troops I will send them.
MCINTYRE: And those troops, the U.S. insists, will not be subject to a veto from the Iraqi government if the U.S. believes it needs to take action, say for instance to capture Abu Musah al- Zarqawi, currently the most wanted man in Iraq. WILLIAM COHEN, FORMER DEFENSE SECRETARY: In the short term, there will not be sufficient forces of Iraqis to maintain security and stability. That is the reason why the United States is going to remain there for some time to come.
MCINTYRE (on camera): The Pentagon is making plans to keep a large force in Iraq well beyond 2006 but there is one way the troops could come home much earlier. That is if the interim government asks them to leave.
Jamie McIntyre, CNN, the Pentagon.
(END VIDEOTAPE)
COSTELLO: And using the new terror warning as a backdrop, Senator John Kerry delivers a speech on national security today. And bowing to pressure, Kerry says he will accept his party's nomination at the Boston convention in July. Kerry's campaign had said he might delay the acceptance to improve his financial footing compared with President Bush.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: ... people around the country, most of the people in the party felt very strongly that we ought to do what is necessary to level the playing field and not act at a disadvantage financially to the Bush campaign. Why should one party be at a one month disadvantage? I think it's a silly rule.
But I decided personally, in the end, my gut told me that I wanted to do what I thought was right, which is accept the nomination in Boston.
(END VIDEO CLIP)
COSTELLO: Kerry's speech in Seattle this afternoon will kick off an 11 day focus on foreign policy and national security.
President Bush's handling of the war on terrorism is widely considered his political strength so far this election year. However, when Americans are asked specifically, they are evenly split on whether he's doing a good job in the fight against terror. You can easily keep pace with the candidates on the campaign trail. Just punch up our political site at cnn.com.
Time now for some stories making news across America this Thursday.
About a dozen protesters gathered outside of a Florida prison as the state executed an inmate who wanted to die. John Blackwelder admitted to killing a fellow inmate so he could receive the death penalty. Blackwelder had been serving a life sentence with no chance of parole for several sex offenses.
Cancer patient Don James has the right to die if he wants to. A federal appeals court ruled that the Department of Justice cannot overrule Oregon's assisted suicide law. The 78-year-old man says he isn't sure if he'll choose to die, but he's glad his options are protected. Oregonians passed the Death With Dignity Act back in 1997. Oregon is the only state that allows doctor assisted suicide.
No more marriages for same sex couples in Massachusetts unless they plan to stay. The four cities that have been issuing licenses to out of state couples have ended the practice after getting a cease and desist letter from the state's attorney general. Out of state couples can still get marriage licenses, as long as they plan to become residents.
Pump prices at your local gas station may seem unreasonable, but it could be worse if, of course, you live in London. It's so bad there, it's driven Richard Quest to divorce his gas guzzler.
You're looking at the heartbreaking result of days of rain and flooding in Haiti and the Dominican Republic. Susan Candiotti is on the scene of the devastation there.
And reports in Britain say a U.S. extradited warrant has roped in a radical Muslim cleric. Details. We'll have a report for you from London.
And it's a sign of our overweight times -- a device to keep your mouth shut, or at least partially so.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:14 Eastern.
Here's what's all new this morning.
A new warning from the FBI. A possible terror attack in the United States in the next few months. But nothing specific. The bulletin names seven possible suspects in connection with the latest threats.
One Iraqi was killed and six were wounded in Baghdad this morning. Their minivan was caught in the crossfire between U.S. troops and insurgents. The shootout erupted after a roadside bomb exploded.
In money news, after intense lobbying and months of delay, Wal- Mart has cracked the Chicago market. The city council has voted to rezone an area on Chicago's West Side for a Wal-Mart superstore.
In sports, Rasheed Wallace scored 20 points for the Detroit Pistons as they beat the Indiana Pacers 85-78. That gives the Pistons a lead of two games to one in the conference NBA finals.
In culture, Showtime has served up its final helping of "Soul Food." The network says it wants the series to go out on top. The fifth and final season of TV's longest running black drama ended with last night's episode -- Chad.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Wall Street will open mixed about four hours from now.
But let's take a look at what's happening overseas right now.
For that, we head live to London and Mallika Kapur -- good morning, Mallika.
MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.
As you can see here, it is a very positive session for Europe's main markets. We're about two hours into the trading day here and it is gains across-the-board. Germany's DAX doing the best at the moment, up almost one percent at the moment.
Now, there is a lot of relief in the stock markets here in Europe that the price of oil is finally slipping just a little bit. As you know, the price of oil has been very high over the last couple of days and touched a 21-year high on May 10 of $41.85 a barrel.
As you can see here, it has come off that high and it's now at $40.46 a barrel. And analysts are saying that is because of a little bit of profit taking we are seeing in the oil market.
And taking a look at the dollar, I must remind you that even though the price of oil has eased a little bit, it still remains very high, still above $40 a barrel. And that is creating a little bit of nervousness in the currency market, because higher oil prices do mean that it could hurt consumer spending, which, in turn, could hurt the U.S. economy, and therefore perhaps make the U.S. Federal Reserve a little bit less inclined to raise interest rates next month, which, generally, the stock markets are expecting the Fed to do.
And I quickly want to tell you about some corporate news we've had this morning. We've had results in from Vivendi Universal. That's the French media and telecom company. Vivendi Universal has narrowed its losses since last year. It's reported a net loss of $7.2 million. Now, while that's a significant loss in itself, it's still relatively small compared to a loss of over $400 million last year.
So this last coming in better than expected and its stock is higher -- Carol, back to you.
COSTELLO: Mallika Kapur live from London this morning.
How much did it cost you the last time you filled up? It seems every day we set a new record for high gas prices. This week, the average price for a gallon of regular unleaded, $2.05. That's up almost a quarter from a month ago and more than $0.50 over last year.
Prices at your local gas station may seem unreasonable, but it could be worse. You could live in London. That's where we find CNN's Richard Quest, who has his own unique spin on the price of petrol.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN CORRESPONDENT: This is Bessie, my pride and joy. Now, Bessie likes a bit of a drink. Truth be told, Bessie's got a bit of a drink problem. And getting just 18 miles a gallon here in central London, well, at today's prices, it's going to cost me a fortune to give Bessie a decent drink.
Now, of course, in Europe, we sell petrol in liters, not gallons. And there are four liters in the American gallon. Which means at these prices, it's going to cost about $6.50 per gallon. Look at the speed the thing is going round. It has cost me more than $100 to fill the tank and unless the oil cartel OPEC comes to my rescue pretty soon, which seems unlikely, Bessie, it's time for a divorce.
Delores, we must get to know each other a little bit better. This is more like it. Come on, dear. Let's see what you can do. So, with the smart car getting 60 miles to the gallon and gas at these prices, it's the little car that can that's driving circles around the gas guzzlers.
Richard Quest, CNN, London.
(END VIDEOTAPE)
COSTELLO: What can I say? By the way, I don't know if Richard said that, because I was so caught up in watching Delores drive around that car, $5 and more per gallon in London, the price of gas for a regular gas. You know what I mean.
A night to remember for Fantasia fans. We'll have the low down on the "American Idol" finale.
And if gas prices keep rising the way they are, you and I might be driving around in vehicles that don't look so much like Delores, but look like that.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Did you watch "American Idol" last night? Well, 65 million voters cannot be wrong. Fantasia Barrino is our new American idol. But in case you missed it, here is her winning moment.
(BEGIN VIDEO CLIP FROM "AMERICAN IDOL")
UNIDENTIFIED MALE: The winner of "American Idol" 2004 is Fantasia Barrino.
(END VIDEO CLIP)
COSTELLO: She lost her shoe somehow or broke her shoe or something like that. In Fantasia's home state of North Carolina, her supporters went absolutely wild. You know the show is a pop culture phenomenon when viewing parties are held in arenas. Nineteen-year-old Fantasia, of course, beat 16-year-old Georgia girl Diana DeGarmo for the top prize, which includes a recording contract and plenty of attention. Fans say Barrino blew them away with her talent.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: She was just awesome. That was it. We're proud of her.
UNIDENTIFIED FEMALE: And I'm, I'm over 50 years old, but it's so wonderful to see young people do so well.
UNIDENTIFIED CHILD: Everybody was jumping. Everybody was screaming. It was so crazy out there.
(END VIDEO CLIP)
COSTELLO: Well, Fantasia is only 19 years old. Diana DeGarmo's younger, 16. Her fans were there for their home girl, too. Thousands crowded into the Georgia Dome here in Atlanta to cheer her on. And if you think you've heard the last from these idols, think again. All 12 finalists will go on tour together this summer.
MYERS: Oh nice. And they can sing "We Are the World."
COSTELLO: Hey, it's an idea that they might take you up on.
MYERS: Exactly. You know, I was -- not to rub it in, but I was in Hawaii, you know, a couple days ago. And the third place winner was actually from Honolulu. They shut down the streets. They had parades. You couldn't get anywhere in Hawaii. It was just, it was a fiasco through there. There was a great parade. Everybody loved her in Honolulu, as well.
COSTELLO: She was a sweetie.
MYERS: Yes.
COSTELLO: People voted for her just because they liked her.
MYERS: Exactly.
COSTELLO: I mean she had a pretty good singing voice, but nothing like Fantasia or Diana. Fantasia...
MYERS: You don't get to the top three by singing like I do.
COSTELLO: No, she sang much better than you.
MYERS: Yes.
COSTELLO: Listen, 65 million people voted.
MYERS: Yes. COSTELLO: I think only, what, 104 million people voted in the last presidential election.
MYERS: Yes, right. But that'll probably be about their bank roll in about five years, you know? They'll all be worth about $65 million.
COSTELLO: Oh, you're not kidding.
MYERS: Wow!
COSTELLO: Fantasia, though, what a great story.
MYERS: Yes.
COSTELLO: Nineteen years old, she's a single mom, she worked really hard to get there. She has a very unique voice. Some people compare her to Macy Gray. Just fantastic. But it was an exciting "American Idol."
MYERS: I'll tell you what, when they have the tryouts here in Atlanta, there are 4,000 or 5,000 people standing in line. You don't know -- it looks like they're standing in line for concert tickets. They're standing in line to go see Simon. Whoa, wait, wait, no.
COSTELLO: To be criticized by Simon.
MYERS: Exactly.
COSTELLO: And, by the way, you all can hear more from Fantasia and Diana and even ask them a question or two. They will be on Friday's "Larry King Live."
MYERS: Oh, great.
COSTELLO: That's at 9:00 p.m. Eastern right here on CNN. And, I know, Chad, you'll be tuned in.
MYERS: Oh, yes.
COSTELLO: Time now for our DAYBREAK Eye-Opener.
Imagine waking up with this in your bedroom. Luckily, no one was injured when high winds knocked over a giant tree in Missouri. The owners fear the house may collapse once the tree-ectomy is performed.
Gas prices got you down? Then check out this odd looking ride. Hmmm. It gets more than 2,000 miles to the gallon. Two thousand! It took a group of Indiana high school students two years to build the vehicle, which won them the Indianapolis Super Mileage Car Contest.
A new attraction in St. Louis may rival the arch. It's a giant Ferris wheel built to commemorate the 100th anniversary of the 1904 St. Louis World's Fair. The 11 story high ride seats 144 people and has 12,000 lights. But some people aren't enamored with the attraction, saying it could cause motorists to crash while they're watching the wheel.
Here's what's all new in the next half hour of DAYBREAK.
A path of destruction leaves more than 500 dead. We'll get an in the mud look at how people in the Dominican Republic are coping this morning.
Plus, six years later, a second conviction in the Oklahoma City bombing. Is it enough for the victims' families?
And a new dieting program that targets the size of the bites of food you take. We'll show and tell, next.
(COMMERCIAL BREAK)
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 27, 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: Have you seen this American convert to Islam? The FBI says he could be working for al Qaeda.
It's Thursday, May 27.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines for you now.
An offer to end weeks of fighting in the Iraqi holy city of Najaf. A radical Shiite cleric is making the offer, but U.S. military commanders say his proposal is similar to previous ones and they are skeptical this morning.
Police sources say radical Muslim cleric Abu Hamza al-Masri has been arrested in London. Al-Masri, accused of supporting al Qaeda, reportedly is scheduled to appear at a court hearing today. Washington wants him extradited.
In money news, United Airlines is feeling the pressure from high oil prices. The nation's second largest airline says it's raising its fuel surcharge by $5 per flight.
In sports, the "Rocky Mountain News" reports that University of Colorado football coach Gary Barnett is expected to keep his job. The football program has been investigated for using sex, drugs and alcohol to attract recruits.
In pop culture, you just knew it. Fantasia, ah, I should have let him announce it, Ryan Seacrest. But Fantasia is America's newest "American Idol" winner. She edges out Diana DeGarmo for a recording contract and instant celebrity status.
Although, I think, Chad, both of them have that already.
CHAD MYERS, CNN CORRESPONDENT: Yes, even like the third and fourth place people now, you know? It's just that everybody is watching so much that even if you hang around at all you're in pretty good shape.
(WEATHER REPORT) COSTELLO: The concern this morning, terrorism at home. A special FBI task force is looking for terrorists here in America. Also, the FBI and the attorney general are warning the nation's law enforcement agencies to be on alert. Al Qaeda may be planning something big.
Kelli Arena has more for you.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT (voice-over): A series of high profile public events, including the dedication of the WWII Memorial, the economic summit on Sea Island, Georgia, and, of course, the political conventions, adding to the concern about possible terror attacks on U.S. soil.
JOHN ASHCROFT, ATTORNEY GENERAL: Credible intelligence from multiple sources indicates that al Qaeda plans to attempt an attack on the United States in the next few months. Now, this disturbing intelligence indicates al Qaeda's specific intention to hit the United States hard.
ARENA: The attorney general cited public statements, saying al Qaeda is 90 percent ready for an attack, which experts trace back to a shadowy group, the Abu Hafs al-Masri Brigades. Some question the group's credibility. Still, the attorney general says intelligence suggests the impact the Madrid train bombings had on the Spanish elections could lead to similar action here. But he said the government has no specifics.
So what are officials doing about it?
There is a special task force. Agents are checking in with sources and informants and the FBI will conduct nationwide interviews seeking intelligence information.
ROBERT MUELLER, FBI DIRECTOR: Information about persons that may have moved into the country recently, persons who seem to be in a community without any roots.
ARENA: The FBI also issuing a new be on the lookout for this man, Adam Yahiye Gadahn, a U.S. citizen wanted for questioning regarding possible threats against the United States. The Bureau also reissued alerts for six others.
As Mueller and Ashcroft were issuing dire warnings, a strikingly different tone from the secretary of homeland security, Tom Ridge.
TOM RIDGE, HOMELAND SECURITY SECRETARY: There's a consistent reporting stream -- they're here, they're not here, they're on their way, the possibility of attack might be at this point in time, might be a couple months down the road.
ARENA (on camera): Ridge says he's not as concerned now as he was over the Christmas holiday, for example, when the threat level was raised to orange. And he says there are no plans to raise it this time.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: And Kelli talked about the FBI search for Adam Gadahn in her report. Gadahn is a U.S. citizen who converted to Islam. This is home video. Gadahn is on the right in the white shirt. It's believed this was taken while he was still in high school. The FBI says he is associated with Abu Zubaydah in Pakistan and attended terrorist training camps in Afghanistan. The agency adds that Gadahn performed translations for al Qaeda. His father, he hasn't seen him in years.
(BEGIN VIDEO CLIP)
PHILLIP GADAHN, FATHER: I knew he'd been out of the country and -- but I thought he was settling down. I didn't imagine that he was -- would be involved in anything like what they're thinking he might be. But I don't -- I'm not sure that the FBI really thinks that.
I really don't know much because I haven't seen him for several years and he just, he sort of detached. He went off and did his own thing. And that's just kind of the way he is.
(END VIDEO CLIP)
COSTELLO: The search for terrorist suspects, protecting the public and security plans for the dedication this weekend of the WWII Memorial -- D.C. Police Chief Charles Ramsey will talk about all of that on "American Morning." That comes your say at 7:00 Eastern.
Here's our Iraq situation report for you this morning.
Radical cleric Muqtada al-Sadr says he will withdraw most of his militiamen from Najaf if coalition troops will leave the city. Coalition commanders are skeptical that al-Sadr will keep his word and they plan to continue their operations at Najaf.
There are more American casualties in the war. Three U.S. Marines were killed in action in al-Anbar Province west of Baghdad. Details not immediately available. The deaths bring the American toll in Iraq to 805.
Iraqi nuclear scientist Hussain al-Shahristani has been a favorite for a top job with the new interim Iraqi government, maybe even prime minister. But Shahristani has told a U.N. envoy he doesn't want that job or any other government post.
That interim Iraqi government is scheduled to take power just 34 days from now. And who will provide security for it in a dangerous country?
That issue is a prime topic at the Pentagon, where Jamie McIntyre is our senior correspondent. He has more for you.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): When U.S. Marines had to call off their offensive in Fallujah last month because of the objections of Iraq's Governing Council, to many it seemed like a defeat.
But now the Pentagon says allowing former members of Saddam's army to patrol the town is a model for the flexibility that will be required after the transfer of sovereignty. Marine Corps Commandant General Michael Hagee.
GEN. MICHAEL HAGEE, MARINE CORPS COMMANDANT: If that's a defeat, we need more defeats like that.
MCINTYRE: In his Monday speech, President Bush said the U.S. would accelerate the training of 260,000 Iraqis to form the lynchpin of a homegrown security force but critics in Congress, such as Democratic Senator Joseph Biden, charge the number and effectiveness of those U.S.-trained forces is consistently overstated.
SEN. JOSEPH BIDEN (D), FOREIGN RELATIONS COMMITTEE: I mean this malarkey you guys came up with, you got 200,000 trained Iraqis, I mean every single solitary expert, including your guys that we met with in Iraq, said it's going to take three years to train 40,000 Iraqi military.
MCINTYRE: Not to mention that when U.S. commanders ordered some of those Iraqis into battle many refused to fight. The administration hopes that after June 30th with Iraqis in charge their resolve will stiffen.
RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: These Iraqi forces who have fought in many cases valiantly will no longer be fighting for the occupiers. They're going to be fighting for Iraq.
MCINTYRE: Army Colonel Paul Hughes, a professor at the National Defense University, believes imposing order is job one, especially with Iraq's elections coming up.
COL. PAUL HUGHES, NATIONAL DEFENSE UNIVERSITY: If we fail in providing security at those particular junctures I think that we're going to have a significant setback in seeing a viable Iraqi government established.
MCINTYRE: Hughes and many others in the military believe ultimately that will require significantly more U.S. troops than the 138,000 currently in Iraq.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If they need more troops I will send them.
MCINTYRE: And those troops, the U.S. insists, will not be subject to a veto from the Iraqi government if the U.S. believes it needs to take action, say for instance to capture Abu Musah al- Zarqawi, currently the most wanted man in Iraq. WILLIAM COHEN, FORMER DEFENSE SECRETARY: In the short term, there will not be sufficient forces of Iraqis to maintain security and stability. That is the reason why the United States is going to remain there for some time to come.
MCINTYRE (on camera): The Pentagon is making plans to keep a large force in Iraq well beyond 2006 but there is one way the troops could come home much earlier. That is if the interim government asks them to leave.
Jamie McIntyre, CNN, the Pentagon.
(END VIDEOTAPE)
COSTELLO: And using the new terror warning as a backdrop, Senator John Kerry delivers a speech on national security today. And bowing to pressure, Kerry says he will accept his party's nomination at the Boston convention in July. Kerry's campaign had said he might delay the acceptance to improve his financial footing compared with President Bush.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: ... people around the country, most of the people in the party felt very strongly that we ought to do what is necessary to level the playing field and not act at a disadvantage financially to the Bush campaign. Why should one party be at a one month disadvantage? I think it's a silly rule.
But I decided personally, in the end, my gut told me that I wanted to do what I thought was right, which is accept the nomination in Boston.
(END VIDEO CLIP)
COSTELLO: Kerry's speech in Seattle this afternoon will kick off an 11 day focus on foreign policy and national security.
President Bush's handling of the war on terrorism is widely considered his political strength so far this election year. However, when Americans are asked specifically, they are evenly split on whether he's doing a good job in the fight against terror. You can easily keep pace with the candidates on the campaign trail. Just punch up our political site at cnn.com.
Time now for some stories making news across America this Thursday.
About a dozen protesters gathered outside of a Florida prison as the state executed an inmate who wanted to die. John Blackwelder admitted to killing a fellow inmate so he could receive the death penalty. Blackwelder had been serving a life sentence with no chance of parole for several sex offenses.
Cancer patient Don James has the right to die if he wants to. A federal appeals court ruled that the Department of Justice cannot overrule Oregon's assisted suicide law. The 78-year-old man says he isn't sure if he'll choose to die, but he's glad his options are protected. Oregonians passed the Death With Dignity Act back in 1997. Oregon is the only state that allows doctor assisted suicide.
No more marriages for same sex couples in Massachusetts unless they plan to stay. The four cities that have been issuing licenses to out of state couples have ended the practice after getting a cease and desist letter from the state's attorney general. Out of state couples can still get marriage licenses, as long as they plan to become residents.
Pump prices at your local gas station may seem unreasonable, but it could be worse if, of course, you live in London. It's so bad there, it's driven Richard Quest to divorce his gas guzzler.
You're looking at the heartbreaking result of days of rain and flooding in Haiti and the Dominican Republic. Susan Candiotti is on the scene of the devastation there.
And reports in Britain say a U.S. extradited warrant has roped in a radical Muslim cleric. Details. We'll have a report for you from London.
And it's a sign of our overweight times -- a device to keep your mouth shut, or at least partially so.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It's 5:14 Eastern.
Here's what's all new this morning.
A new warning from the FBI. A possible terror attack in the United States in the next few months. But nothing specific. The bulletin names seven possible suspects in connection with the latest threats.
One Iraqi was killed and six were wounded in Baghdad this morning. Their minivan was caught in the crossfire between U.S. troops and insurgents. The shootout erupted after a roadside bomb exploded.
In money news, after intense lobbying and months of delay, Wal- Mart has cracked the Chicago market. The city council has voted to rezone an area on Chicago's West Side for a Wal-Mart superstore.
In sports, Rasheed Wallace scored 20 points for the Detroit Pistons as they beat the Indiana Pacers 85-78. That gives the Pistons a lead of two games to one in the conference NBA finals.
In culture, Showtime has served up its final helping of "Soul Food." The network says it wants the series to go out on top. The fifth and final season of TV's longest running black drama ended with last night's episode -- Chad.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Wall Street will open mixed about four hours from now.
But let's take a look at what's happening overseas right now.
For that, we head live to London and Mallika Kapur -- good morning, Mallika.
MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Carol.
As you can see here, it is a very positive session for Europe's main markets. We're about two hours into the trading day here and it is gains across-the-board. Germany's DAX doing the best at the moment, up almost one percent at the moment.
Now, there is a lot of relief in the stock markets here in Europe that the price of oil is finally slipping just a little bit. As you know, the price of oil has been very high over the last couple of days and touched a 21-year high on May 10 of $41.85 a barrel.
As you can see here, it has come off that high and it's now at $40.46 a barrel. And analysts are saying that is because of a little bit of profit taking we are seeing in the oil market.
And taking a look at the dollar, I must remind you that even though the price of oil has eased a little bit, it still remains very high, still above $40 a barrel. And that is creating a little bit of nervousness in the currency market, because higher oil prices do mean that it could hurt consumer spending, which, in turn, could hurt the U.S. economy, and therefore perhaps make the U.S. Federal Reserve a little bit less inclined to raise interest rates next month, which, generally, the stock markets are expecting the Fed to do.
And I quickly want to tell you about some corporate news we've had this morning. We've had results in from Vivendi Universal. That's the French media and telecom company. Vivendi Universal has narrowed its losses since last year. It's reported a net loss of $7.2 million. Now, while that's a significant loss in itself, it's still relatively small compared to a loss of over $400 million last year.
So this last coming in better than expected and its stock is higher -- Carol, back to you.
COSTELLO: Mallika Kapur live from London this morning.
How much did it cost you the last time you filled up? It seems every day we set a new record for high gas prices. This week, the average price for a gallon of regular unleaded, $2.05. That's up almost a quarter from a month ago and more than $0.50 over last year.
Prices at your local gas station may seem unreasonable, but it could be worse. You could live in London. That's where we find CNN's Richard Quest, who has his own unique spin on the price of petrol.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN CORRESPONDENT: This is Bessie, my pride and joy. Now, Bessie likes a bit of a drink. Truth be told, Bessie's got a bit of a drink problem. And getting just 18 miles a gallon here in central London, well, at today's prices, it's going to cost me a fortune to give Bessie a decent drink.
Now, of course, in Europe, we sell petrol in liters, not gallons. And there are four liters in the American gallon. Which means at these prices, it's going to cost about $6.50 per gallon. Look at the speed the thing is going round. It has cost me more than $100 to fill the tank and unless the oil cartel OPEC comes to my rescue pretty soon, which seems unlikely, Bessie, it's time for a divorce.
Delores, we must get to know each other a little bit better. This is more like it. Come on, dear. Let's see what you can do. So, with the smart car getting 60 miles to the gallon and gas at these prices, it's the little car that can that's driving circles around the gas guzzlers.
Richard Quest, CNN, London.
(END VIDEOTAPE)
COSTELLO: What can I say? By the way, I don't know if Richard said that, because I was so caught up in watching Delores drive around that car, $5 and more per gallon in London, the price of gas for a regular gas. You know what I mean.
A night to remember for Fantasia fans. We'll have the low down on the "American Idol" finale.
And if gas prices keep rising the way they are, you and I might be driving around in vehicles that don't look so much like Delores, but look like that.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Did you watch "American Idol" last night? Well, 65 million voters cannot be wrong. Fantasia Barrino is our new American idol. But in case you missed it, here is her winning moment.
(BEGIN VIDEO CLIP FROM "AMERICAN IDOL")
UNIDENTIFIED MALE: The winner of "American Idol" 2004 is Fantasia Barrino.
(END VIDEO CLIP)
COSTELLO: She lost her shoe somehow or broke her shoe or something like that. In Fantasia's home state of North Carolina, her supporters went absolutely wild. You know the show is a pop culture phenomenon when viewing parties are held in arenas. Nineteen-year-old Fantasia, of course, beat 16-year-old Georgia girl Diana DeGarmo for the top prize, which includes a recording contract and plenty of attention. Fans say Barrino blew them away with her talent.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: She was just awesome. That was it. We're proud of her.
UNIDENTIFIED FEMALE: And I'm, I'm over 50 years old, but it's so wonderful to see young people do so well.
UNIDENTIFIED CHILD: Everybody was jumping. Everybody was screaming. It was so crazy out there.
(END VIDEO CLIP)
COSTELLO: Well, Fantasia is only 19 years old. Diana DeGarmo's younger, 16. Her fans were there for their home girl, too. Thousands crowded into the Georgia Dome here in Atlanta to cheer her on. And if you think you've heard the last from these idols, think again. All 12 finalists will go on tour together this summer.
MYERS: Oh nice. And they can sing "We Are the World."
COSTELLO: Hey, it's an idea that they might take you up on.
MYERS: Exactly. You know, I was -- not to rub it in, but I was in Hawaii, you know, a couple days ago. And the third place winner was actually from Honolulu. They shut down the streets. They had parades. You couldn't get anywhere in Hawaii. It was just, it was a fiasco through there. There was a great parade. Everybody loved her in Honolulu, as well.
COSTELLO: She was a sweetie.
MYERS: Yes.
COSTELLO: People voted for her just because they liked her.
MYERS: Exactly.
COSTELLO: I mean she had a pretty good singing voice, but nothing like Fantasia or Diana. Fantasia...
MYERS: You don't get to the top three by singing like I do.
COSTELLO: No, she sang much better than you.
MYERS: Yes.
COSTELLO: Listen, 65 million people voted.
MYERS: Yes. COSTELLO: I think only, what, 104 million people voted in the last presidential election.
MYERS: Yes, right. But that'll probably be about their bank roll in about five years, you know? They'll all be worth about $65 million.
COSTELLO: Oh, you're not kidding.
MYERS: Wow!
COSTELLO: Fantasia, though, what a great story.
MYERS: Yes.
COSTELLO: Nineteen years old, she's a single mom, she worked really hard to get there. She has a very unique voice. Some people compare her to Macy Gray. Just fantastic. But it was an exciting "American Idol."
MYERS: I'll tell you what, when they have the tryouts here in Atlanta, there are 4,000 or 5,000 people standing in line. You don't know -- it looks like they're standing in line for concert tickets. They're standing in line to go see Simon. Whoa, wait, wait, no.
COSTELLO: To be criticized by Simon.
MYERS: Exactly.
COSTELLO: And, by the way, you all can hear more from Fantasia and Diana and even ask them a question or two. They will be on Friday's "Larry King Live."
MYERS: Oh, great.
COSTELLO: That's at 9:00 p.m. Eastern right here on CNN. And, I know, Chad, you'll be tuned in.
MYERS: Oh, yes.
COSTELLO: Time now for our DAYBREAK Eye-Opener.
Imagine waking up with this in your bedroom. Luckily, no one was injured when high winds knocked over a giant tree in Missouri. The owners fear the house may collapse once the tree-ectomy is performed.
Gas prices got you down? Then check out this odd looking ride. Hmmm. It gets more than 2,000 miles to the gallon. Two thousand! It took a group of Indiana high school students two years to build the vehicle, which won them the Indianapolis Super Mileage Car Contest.
A new attraction in St. Louis may rival the arch. It's a giant Ferris wheel built to commemorate the 100th anniversary of the 1904 St. Louis World's Fair. The 11 story high ride seats 144 people and has 12,000 lights. But some people aren't enamored with the attraction, saying it could cause motorists to crash while they're watching the wheel.
Here's what's all new in the next half hour of DAYBREAK.
A path of destruction leaves more than 500 dead. We'll get an in the mud look at how people in the Dominican Republic are coping this morning.
Plus, six years later, a second conviction in the Oklahoma City bombing. Is it enough for the victims' families?
And a new dieting program that targets the size of the bites of food you take. We'll show and tell, next.
(COMMERCIAL BREAK)
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