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CNN Live At Daybreak

Muqtada Al-Sadr's Militia Have Yet to Put Down Their Arms; Texas Oil Producers Cashing in on High Gas Prices

Aired May 28, 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.


BETTY NGUYEN, CNN ANCHOR: If there's a truce in Najaf, then why are U.S. soldiers still being shot at?
It's Friday, May 28, and this is DAYBREAK.

Good morning.

From the CNN global headquarters in Atlanta, I'm Betty Nguyen in today for Carol Costello.

Here's a look at headlines at this hour.

U.S. prosecutors say a headline British Muslim cleric has been aiding al Qaeda and was plotting to build a training camp in Oregon for Islamic militants. The cleric, arrested Thursday in London, is awaiting an extradited hearing, scheduled for late July.

Storms have left hundreds dead from flooding in Haiti and the Dominican Republic, and the forecast is not good. Up to three inches of rain are expected this weekend.

In money, economists say a climbing mortgage rate could slow down the economy. Thirty year fixed rate mortgages rose slightly to above 6.3 percent. Rates for 15 year mortgages also went up.

In sports, the Los Angeles Lakers take a 3-1 lead in the Western Conference finals, with a 92-85 win over the Minnesota Timberwolves.

In culture, the movie "The Day After Tomorrow" is out. It's a thriller about global warming. But some scientists say the premise is a bit far fetched. We'll see about that.

But we do want to talk about weather this morning with Chad Myers -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Betty, good morning.

Welcome to the morning show.

NGUYEN: Why, thank you.

MYERS: My goodness, you sound bright-eyed and bushy-tailed this morning.

NGUYEN: It's still early.

(WEATHER REPORT)

NGUYEN: This morning's incoming fire at the U.S. military base near Najaf included mortar rounds and rocket propelled grenades. RPGs were also fired at U.S. forces near Kufa. The attacks come one day after coalition forces agreed to halt offensive operations against the militia of radical cleric Muqtada al-Sadr.

CNN's Jane Arraf has more now from Najaf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: Mortars were fired again this morning at the U.S. base in Najaf. Nine mortar rounds hit the base, military officials say, and rocket propelled grenades fired here, as well. They've detained four suspected militia members in Kufa near Najaf. And in detaining them and questioning them, they say that the men say they hadn't received any word that they should lay down their arms and stop fighting.

Military officials say it seems as if the word clearly has not gotten out to all of the militia members or it's possible that Muqtada al-Sadr doesn't have control of all the militia members. They're waiting to see if they can have more proof that this is, indeed, an agreement for the militias to disband.

On the political side, still some items to be pinned down in that agreement that's coming together between Sadr and religious authorities in Najaf. A couple of the areas of disagreement still are what leeway U.S. forces would have in the city. They say they need freedom of movement to avoid a security gap and assurances that the militia within Najaf would clearly and categorically lay down their arms.

Jane Arraf, CNN, reporting from Najaf.

(END VIDEOTAPE)

NGUYEN: Another mass prisoner release today from Abu Ghraib Prison near Baghdad. Relatives shouted and waved Iraqi flags as buses took hundreds of detainees from the prison. The coalition periodically releases detainees from Abu Ghraib, which is notorious for prisoner torture. It's believed there are still 3,000 to 4,000 prisoners at Abu Ghraib.

For the full story on what's going on today in Iraq, you can visit our Web site. That is cnn.com.

Federal prosecutors say a headline British Muslim cleric was planning to build a terrorist training camp in the Pacific Northwest. The indictment says Abu Hamza al-Masri plotted to set up a training camp in Blythe, Oregon. Abu Hamza was arrested Thursday in London. Washington is seeking his extradition. An extradition hearing is set for July 23.

Well, we are getting some mixed signals now about all the talk that terrorists are planning a major attack on U.S. soil as early as this summer. Apparently, the homeland security office is not as convinced as the FBI and Justice Department seem to be. Is the threat being overstated?

CNN homeland security correspondent Jeanne Meserve takes a look.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Twenty-four hours after it released photographs of seven people with suspected ties to terrorism, the FBI had received over 2,000 tips and it's asking for more. Thursday, the attorney general repeated the ominous threat warning.

JOHN ASHCROFT, ATTORNEY GENERAL: It's multiply sourced, credible intelligence that's growing, that's a stream of intelligence that has been corroborated.

MESERVE: But an administration official says the Department of Justice has been taken to task for not coordinating with other agencies involved in counter-terrorism. All parties involved have been asked to ensure the greatest cooperation when announcing threat information, the official said.

Of concern, a leak the night before the press conference, which said al Qaeda operatives were in the U.S. actively plotting a strike this summer. Some officials believe it overstated the threat and that it undermined homeland security's relationship with state and local officials, who one official said, were left shrugging their shoulders wondering what to do.

Also worrisome to some, apparently conflicting statements from Ashcroft and Homeland Security Secretary Tom Ridge.

ASHCROFT: A clear and present danger to America.

TOM RIDGE, HOMELAND SECURITY SECRETARY: There's no specific information.

DAVID HEYMAN, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: Now, that sends a mixed message to the public. I think it confuses them and, frankly, angers them, because they don't know what to expect from their government.

MESERVE (on camera): An administration official says the president asked Ridge and Ashcroft before Wednesday's press conference if they were in sync. They said yes, believing he was referring to the release of the lookout for suspicious persons. But, the official says, they were not and are not in agreement on the intelligence assessment.

Meanwhile, a Justice Department official disputes that homeland security was ever out of the loop, saying DHS was at the table "every step of the way."

Jean Meserve, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: Stories across America this Friday, in Baltimore, veteran police officers say they have never seen anything like it. Three children, two 9-year-old girls and a 10-year-old boy, found decapitated in a Baltimore apartment. Their mother, who found the bodies, directed police to a man who was taken into custody a few blocks from the crime scene. The man is being questioned, but no charges have been filed.

An unscheduled stop in Nashville. An American Airlines jetliner flying from Dallas to Boston was diverted after a note was found. The note said there was a bomb in the cargo hold. But a ground crew in Nashville found no sign of explosives.

In Philadelphia, the Feds raid a mosque and two private homes. At the mosque, agents arrested an Islamic cleric from Egypt who is free on bond while fighting a deportation order. An immigration official says Mohamed Ghorab violated the conditions of his bond. But the official gave no details.

Well, you may be feeling pain at the gasoline pump. But imagine this. The high cost of crude oil has some Texas oilmen seeing green.

It's that time of year, time to honor all of our veterans. Some of them will share special memories at the WWII Memorial.

And it could be risky business playing golf on a former minefield. This gives a whole new meaning to a hole in one.

And here's a member of the Trenton Thunder, who really lives up to his name. Check him out.

(COMMERCIAL BREAK)

NGUYEN: Federal prosecutors say a headline British Muslim cleric was planning to build a terrorist training camp in the Pacific Northwest. Abu Hamza was arrested Thursday in London. Washington is seeking his extradition. But extraditing Abu Hamza may not be so easy.

CNN's Robyn Curnow is live in London with that part of the story -- Robyn.

(AUDIO GAP)

NGUYEN: OK, we're obviously having some technical difficulties with that report. We'll try to get that to you a little bit later in this show.

Your news, money, weather and sports. It's that time, time to check in with all of that this morning.

The U.S. military base at Najaf was attacked this morning with mortars and rocket propelled grenades. There are no reports of casualties. The attack comes one day after the coalition agreed to a truce deal with radical cleric Muqtada al-Sadr. Hundreds of prisoners were released this morning from the notorious Abu Ghraib Prison near Baghdad. Buses took the detainees from the prison while family members shouted and waved Iraqi flags.

In the corporate world, an internationally known board chairman, Umberto Agnelli of Fiat, has died of cancer at his home in Italy. Agnelli was 69 years old. His forget founded the Fiat Company over a century ago.

In sports, Russian teenager Maria Kirilenko gave Serena Williams a fight, but Williams prevailed in the second round of the French Open. Williams and five other Americans, including her sister Venus, move on to the third round.

In culture, viewership for "American Idol" was slightly off from last year, but the Fox Network is not complaining. That's because nearly 31 1/2 million people watched Fantasia Barrino become this year's American idol. Last year, 33.7 million saw Rubin Stutter win.

And in weather -- Chad.

Did you watch it?

MYERS: Good morning.

I didn't, but that's almost as many people as watch the Super Bowl.

NGUYEN: Oh, I know.

MYERS: That's crazy.

(WEATHER REPORT)

NGUYEN: Well, we have all felt the sting of high gasoline prices. Now the high cost of crude has some Texas oil producers seeing green.

As CNN's Ed Lavandera reports, they're finding ways to cash in.

(BEGIN VIDEOTAPE)

JOHN BELL, OIL PRODUCER: We're making a little progress.

ED LAVANDERA, CNN CORRESPONDENT (voice-over): The wild cat gambling spirit is thriving again in the West Texas oil fields. John Bell is trying to bring two oil wells back to life for his boss. BELL: If I can fix it and I can perforate some new wells, new zones, and I can start making him another 50 or 100 barrels a day, he'll be happy.

LAVANDERA: These wells haven't pumped oil in more than five years, but high oil prices have inspired oil producers to upgrade equipment and get old pumps running again. Bell has spent $200,000 on these wells in the last three weeks. BELL: With the low prices, I wouldn't be on this project. We wouldn't even be out here. We wouldn't be talking about this.

LAVANDERA: The true sign of a booming oil industry is how many drilling rigs are running. In West Texas, more than 60 rigs have started spinning into the earth in the last 18 months.

DON SPARKS, OIL PRODUCER: We drill these wells in about 15, 16, 17 days.

LAVANDERA: Don Sparks is drilling two wells a month, spending more than a million dollars. But it's getting tougher to get the equipment he needs. He had to buy steel casings from a vendor in Eastern Europe.

SPARKS: Our casing is supposedly on the ocean right now on its way into the U.S.

MORRIS BURNS, PERMIAN BASIN OIL ASSOCIATION: When we've got over 200 rigs running, that means we've got full employment, everybody's working. We don't have people sitting around wondering am I going to do anything today.

LAVANDERA: But history has a way of tempering today's excitement.

(on camera): The last time oil sold for $40 a barrel was during the oil boom of the early '80s. But what people around here remember most is what happened a few years after. When prices plummeted, the oil fields shut down, and as one producer put it, "small West Texas oil towns fell off the face of the earth."

(voice-over): Oil producers fear if prices stay high for too long, the backlash will be painful.

UNIDENTIFIED MALE: If this price comes up too high, damages the economy, puts us back in another recession, we'll see another dip in oil prices. And then we'll shut down and lay off a bunch of people.

LAVANDERA: John Bell brought one oil pump back to life. The hope is 100 barrels a day will soon rise from this spot. Now it's time to move on. Bell's boss must decide where to look for oil next. BELL: It's kind of like gambling, you know? He's won a little bit. He lost. Now he's won some of it back. Now, am I gonna roll the dice again?

LAVANDERA: There's an old saying in the West Texas oil patch that life in the oil business means you're either eating chicken or feathers. Right now, oil producers are finding lots of chicken on their plates.

Ed Lavandera, CNN, Odessa, Texas.

(END VIDEOTAPE)

NGUYEN: Time now to check the overseas markets and see what Wall Street is watching as it wraps up the week.

For that we turn to Mallika Kapur, who is checking the financial numbers for us in London -- good morning, Malika.

MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Betty.

Well, we're about two hours into the trading day here in Europe and Europe's main markets have decided to change direction just in the last couple of minutes.

And you can see here, all of its main bourses are in negative territory at the moment. But we didn't open on the down side today. Europe's main bourses opened sharply higher this morning and it just seems that some of the optimism we've seen in the market is weaning thin ahead of the weekend.

Now, one of the reasons these markets were high, and, in fact, one of the reasons we have seen stocks rise around the world over the last day or two is because the price of oil has been slipping. U.S. light has slipped. It's down about $0.18, at $39.26 a barrel at the moment. Brent crude at $36.25 a barrel, unchanged at the moment. And these prices are slipping for two reasons. We are seeing some profit taking going on in the oil market. And also because there are signs that OPEC may increase oil production when it meets in Beirut next week. So oil prices easing a little bit. But they do remain quite high. U.S. light above $39 a barrel at the moment, not that far from a high of $41.85 a barrel it hit just about two weeks ago.

And those oil prices falling today are affecting all stocks across Europe -- British Petroleum, Shell and Total, which is based in France, all in negative territory.

And there's another story today the markets in Europe are keeping a close eye on, and that's the Marks & Spencer sale. There's a billionaire in Britain now, Philip Green, and a retail billionaire, who has said he's interested in taking over Marks & Spencer, which is Britain's largest clothing seller. And that is giving the share price a very good lift. It is up more than two percent today. But if you take a look at the share price right here, towards the end of this graph, you can see that talk of a takeover bid boosted Marks & Spencer's shares by 20 percent yesterday, a very nice rally in the share price at the moment -- back to you.

NGUYEN: So some optimism in the markets on this Friday.

Like the sound of that.

Thank you, Malika.

Well, they may have to putt around the mines and bomb craters, but golf is making a comeback in Afghanistan. We take you live to Kabul for a look.

And while some little piggies were going to market, these little piggies went to a state capital. We'll explain.

(COMMERCIAL BREAK)

NGUYEN: You may recall yesterday's sneak preview of life returning somewhat to normal in Afghanistan. There's no grass, no manicured greens, but golf has returned to Kabul.

CNN's Ryan Chilcote has put on his knickers and polished his driver and he's ready to tee off -- hi, there.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning.

Well, it's called the Kabul Golf Club and it has had quite the remarkable history. It was opened up under the king of Afghanistan, then closed by the Soviets when they occupied this country for being too high class, if you will, too high brow, too aristocratic. After the Soviets pulled out, it was reopened under the Mujahedeen. It was a very popular place for expatriates living here in Kabul. But then it was closed again under the Taliban for just simply being too Western.

So it opened up a few weeks ago. The golfers we spoke with out there today very hopeful that it will remain open.

A little bit about the course itself. It's just $10 to play, but there weren't too many people out there; in fact, just two golfers, both of them Afghans, expatriates. Actually, both of them, in addition to enjoying playing the course, were looking at it as an investment opportunity.

It used to have grass, but it doesn't have any grass right now, very rugged terrain, really a challenging course, probably, for any even of your most experienced Western golfers, because basically when the ball hits the desert floor it can bounce, you know, it can hit a rock and really bounce in any direction possible. So it a challenge.

The greens, for example, are actually blacks. They don't have enough grass, enough water to water that grass. So instead of having greens, they have blacks, which are basically sand and oil mixed. And another difficult thing is it's difficult to follow your ball because it's so bright here. So they have a bunch of kids out there that help you track down your ball after you hit it -- Betty.

NGUYEN: Ryan, I don't guess you need any expensive golf shoes for that course.

CHILCOTE: Finding golf shoes is a challenge in Kabul. You know, interestingly enough, the golf pro -- yes, the golf pro was telling me that he spent the better part of a month looking for some golf shoes here in Kabul. He found a used pair. But apparently getting, you know, stuff like golf shoes and getting clubs is very difficult here. And obviously very difficult in terms of the money that these people have, that this golf pro, the kids that he's trying to train -- Betty.

NGUYEN: Just getting in a couple rounds is good enough.

All right, Ryan Chilcote in Kabul.

Thanks so much for that report.

Time for our DAYBREAK Eye-Opener. A bit of a problem at the Los Angeles airport. This cargo plane was being unloaded when the weight shifted, causing the plane to tip back on its tail. Seven workers in the nose of the aircraft suddenly found themselves in a precarious situation. They were rescued about an hour later by firefighters using a ladder truck.

Researchers at a university in Japan say they've come up with a new sunscreen lotion. So why are we seeing this hippo? Well, because the researchers say hippo sweat -- yes, you heard me, hippo sweat -- acts like a sunscreen. They say it also has antibiotic properties.

Now, the question is just who's going to collect it? Not me.

Well, check out South Carolina Governor Mark Sanford and a couple of friends. The governor carried these two piglets into the state capital in Colombia. Ah. He wanted to make a point that there is just too much pork in the state budget. It seems his stunt, well, it don't go over too well. The Senate overrode most of his budget vetoes.

And here's what's all new in the next half hour.

New fighting in Najaf just a day after the U.S. reaches a deal.

Heavy security as the greatest generation makes its way to Washington.

And a new talent is unleashed. Baseball's top dog shows his tricks.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Searching for profits is one of the key goals for dot-com companies. And for online portal Yahoo!, profits have come from searching, literally. The dot-com generates over 70 percent of its revenue from paid search sponsors and advertising. Paid search sponsorships allow companies to place their Web sites at the top of every search performed on Yahoo!. Despite growing profits, Yahoo! still faces strong competition from search leader Google.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired May 28, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: If there's a truce in Najaf, then why are U.S. soldiers still being shot at?
It's Friday, May 28, and this is DAYBREAK.

Good morning.

From the CNN global headquarters in Atlanta, I'm Betty Nguyen in today for Carol Costello.

Here's a look at headlines at this hour.

U.S. prosecutors say a headline British Muslim cleric has been aiding al Qaeda and was plotting to build a training camp in Oregon for Islamic militants. The cleric, arrested Thursday in London, is awaiting an extradited hearing, scheduled for late July.

Storms have left hundreds dead from flooding in Haiti and the Dominican Republic, and the forecast is not good. Up to three inches of rain are expected this weekend.

In money, economists say a climbing mortgage rate could slow down the economy. Thirty year fixed rate mortgages rose slightly to above 6.3 percent. Rates for 15 year mortgages also went up.

In sports, the Los Angeles Lakers take a 3-1 lead in the Western Conference finals, with a 92-85 win over the Minnesota Timberwolves.

In culture, the movie "The Day After Tomorrow" is out. It's a thriller about global warming. But some scientists say the premise is a bit far fetched. We'll see about that.

But we do want to talk about weather this morning with Chad Myers -- good morning.

CHAD MYERS, CNN CORRESPONDENT: Betty, good morning.

Welcome to the morning show.

NGUYEN: Why, thank you.

MYERS: My goodness, you sound bright-eyed and bushy-tailed this morning.

NGUYEN: It's still early.

(WEATHER REPORT)

NGUYEN: This morning's incoming fire at the U.S. military base near Najaf included mortar rounds and rocket propelled grenades. RPGs were also fired at U.S. forces near Kufa. The attacks come one day after coalition forces agreed to halt offensive operations against the militia of radical cleric Muqtada al-Sadr.

CNN's Jane Arraf has more now from Najaf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: Mortars were fired again this morning at the U.S. base in Najaf. Nine mortar rounds hit the base, military officials say, and rocket propelled grenades fired here, as well. They've detained four suspected militia members in Kufa near Najaf. And in detaining them and questioning them, they say that the men say they hadn't received any word that they should lay down their arms and stop fighting.

Military officials say it seems as if the word clearly has not gotten out to all of the militia members or it's possible that Muqtada al-Sadr doesn't have control of all the militia members. They're waiting to see if they can have more proof that this is, indeed, an agreement for the militias to disband.

On the political side, still some items to be pinned down in that agreement that's coming together between Sadr and religious authorities in Najaf. A couple of the areas of disagreement still are what leeway U.S. forces would have in the city. They say they need freedom of movement to avoid a security gap and assurances that the militia within Najaf would clearly and categorically lay down their arms.

Jane Arraf, CNN, reporting from Najaf.

(END VIDEOTAPE)

NGUYEN: Another mass prisoner release today from Abu Ghraib Prison near Baghdad. Relatives shouted and waved Iraqi flags as buses took hundreds of detainees from the prison. The coalition periodically releases detainees from Abu Ghraib, which is notorious for prisoner torture. It's believed there are still 3,000 to 4,000 prisoners at Abu Ghraib.

For the full story on what's going on today in Iraq, you can visit our Web site. That is cnn.com.

Federal prosecutors say a headline British Muslim cleric was planning to build a terrorist training camp in the Pacific Northwest. The indictment says Abu Hamza al-Masri plotted to set up a training camp in Blythe, Oregon. Abu Hamza was arrested Thursday in London. Washington is seeking his extradition. An extradition hearing is set for July 23.

Well, we are getting some mixed signals now about all the talk that terrorists are planning a major attack on U.S. soil as early as this summer. Apparently, the homeland security office is not as convinced as the FBI and Justice Department seem to be. Is the threat being overstated?

CNN homeland security correspondent Jeanne Meserve takes a look.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Twenty-four hours after it released photographs of seven people with suspected ties to terrorism, the FBI had received over 2,000 tips and it's asking for more. Thursday, the attorney general repeated the ominous threat warning.

JOHN ASHCROFT, ATTORNEY GENERAL: It's multiply sourced, credible intelligence that's growing, that's a stream of intelligence that has been corroborated.

MESERVE: But an administration official says the Department of Justice has been taken to task for not coordinating with other agencies involved in counter-terrorism. All parties involved have been asked to ensure the greatest cooperation when announcing threat information, the official said.

Of concern, a leak the night before the press conference, which said al Qaeda operatives were in the U.S. actively plotting a strike this summer. Some officials believe it overstated the threat and that it undermined homeland security's relationship with state and local officials, who one official said, were left shrugging their shoulders wondering what to do.

Also worrisome to some, apparently conflicting statements from Ashcroft and Homeland Security Secretary Tom Ridge.

ASHCROFT: A clear and present danger to America.

TOM RIDGE, HOMELAND SECURITY SECRETARY: There's no specific information.

DAVID HEYMAN, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: Now, that sends a mixed message to the public. I think it confuses them and, frankly, angers them, because they don't know what to expect from their government.

MESERVE (on camera): An administration official says the president asked Ridge and Ashcroft before Wednesday's press conference if they were in sync. They said yes, believing he was referring to the release of the lookout for suspicious persons. But, the official says, they were not and are not in agreement on the intelligence assessment.

Meanwhile, a Justice Department official disputes that homeland security was ever out of the loop, saying DHS was at the table "every step of the way."

Jean Meserve, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: Stories across America this Friday, in Baltimore, veteran police officers say they have never seen anything like it. Three children, two 9-year-old girls and a 10-year-old boy, found decapitated in a Baltimore apartment. Their mother, who found the bodies, directed police to a man who was taken into custody a few blocks from the crime scene. The man is being questioned, but no charges have been filed.

An unscheduled stop in Nashville. An American Airlines jetliner flying from Dallas to Boston was diverted after a note was found. The note said there was a bomb in the cargo hold. But a ground crew in Nashville found no sign of explosives.

In Philadelphia, the Feds raid a mosque and two private homes. At the mosque, agents arrested an Islamic cleric from Egypt who is free on bond while fighting a deportation order. An immigration official says Mohamed Ghorab violated the conditions of his bond. But the official gave no details.

Well, you may be feeling pain at the gasoline pump. But imagine this. The high cost of crude oil has some Texas oilmen seeing green.

It's that time of year, time to honor all of our veterans. Some of them will share special memories at the WWII Memorial.

And it could be risky business playing golf on a former minefield. This gives a whole new meaning to a hole in one.

And here's a member of the Trenton Thunder, who really lives up to his name. Check him out.

(COMMERCIAL BREAK)

NGUYEN: Federal prosecutors say a headline British Muslim cleric was planning to build a terrorist training camp in the Pacific Northwest. Abu Hamza was arrested Thursday in London. Washington is seeking his extradition. But extraditing Abu Hamza may not be so easy.

CNN's Robyn Curnow is live in London with that part of the story -- Robyn.

(AUDIO GAP)

NGUYEN: OK, we're obviously having some technical difficulties with that report. We'll try to get that to you a little bit later in this show.

Your news, money, weather and sports. It's that time, time to check in with all of that this morning.

The U.S. military base at Najaf was attacked this morning with mortars and rocket propelled grenades. There are no reports of casualties. The attack comes one day after the coalition agreed to a truce deal with radical cleric Muqtada al-Sadr. Hundreds of prisoners were released this morning from the notorious Abu Ghraib Prison near Baghdad. Buses took the detainees from the prison while family members shouted and waved Iraqi flags.

In the corporate world, an internationally known board chairman, Umberto Agnelli of Fiat, has died of cancer at his home in Italy. Agnelli was 69 years old. His forget founded the Fiat Company over a century ago.

In sports, Russian teenager Maria Kirilenko gave Serena Williams a fight, but Williams prevailed in the second round of the French Open. Williams and five other Americans, including her sister Venus, move on to the third round.

In culture, viewership for "American Idol" was slightly off from last year, but the Fox Network is not complaining. That's because nearly 31 1/2 million people watched Fantasia Barrino become this year's American idol. Last year, 33.7 million saw Rubin Stutter win.

And in weather -- Chad.

Did you watch it?

MYERS: Good morning.

I didn't, but that's almost as many people as watch the Super Bowl.

NGUYEN: Oh, I know.

MYERS: That's crazy.

(WEATHER REPORT)

NGUYEN: Well, we have all felt the sting of high gasoline prices. Now the high cost of crude has some Texas oil producers seeing green.

As CNN's Ed Lavandera reports, they're finding ways to cash in.

(BEGIN VIDEOTAPE)

JOHN BELL, OIL PRODUCER: We're making a little progress.

ED LAVANDERA, CNN CORRESPONDENT (voice-over): The wild cat gambling spirit is thriving again in the West Texas oil fields. John Bell is trying to bring two oil wells back to life for his boss. BELL: If I can fix it and I can perforate some new wells, new zones, and I can start making him another 50 or 100 barrels a day, he'll be happy.

LAVANDERA: These wells haven't pumped oil in more than five years, but high oil prices have inspired oil producers to upgrade equipment and get old pumps running again. Bell has spent $200,000 on these wells in the last three weeks. BELL: With the low prices, I wouldn't be on this project. We wouldn't even be out here. We wouldn't be talking about this.

LAVANDERA: The true sign of a booming oil industry is how many drilling rigs are running. In West Texas, more than 60 rigs have started spinning into the earth in the last 18 months.

DON SPARKS, OIL PRODUCER: We drill these wells in about 15, 16, 17 days.

LAVANDERA: Don Sparks is drilling two wells a month, spending more than a million dollars. But it's getting tougher to get the equipment he needs. He had to buy steel casings from a vendor in Eastern Europe.

SPARKS: Our casing is supposedly on the ocean right now on its way into the U.S.

MORRIS BURNS, PERMIAN BASIN OIL ASSOCIATION: When we've got over 200 rigs running, that means we've got full employment, everybody's working. We don't have people sitting around wondering am I going to do anything today.

LAVANDERA: But history has a way of tempering today's excitement.

(on camera): The last time oil sold for $40 a barrel was during the oil boom of the early '80s. But what people around here remember most is what happened a few years after. When prices plummeted, the oil fields shut down, and as one producer put it, "small West Texas oil towns fell off the face of the earth."

(voice-over): Oil producers fear if prices stay high for too long, the backlash will be painful.

UNIDENTIFIED MALE: If this price comes up too high, damages the economy, puts us back in another recession, we'll see another dip in oil prices. And then we'll shut down and lay off a bunch of people.

LAVANDERA: John Bell brought one oil pump back to life. The hope is 100 barrels a day will soon rise from this spot. Now it's time to move on. Bell's boss must decide where to look for oil next. BELL: It's kind of like gambling, you know? He's won a little bit. He lost. Now he's won some of it back. Now, am I gonna roll the dice again?

LAVANDERA: There's an old saying in the West Texas oil patch that life in the oil business means you're either eating chicken or feathers. Right now, oil producers are finding lots of chicken on their plates.

Ed Lavandera, CNN, Odessa, Texas.

(END VIDEOTAPE)

NGUYEN: Time now to check the overseas markets and see what Wall Street is watching as it wraps up the week.

For that we turn to Mallika Kapur, who is checking the financial numbers for us in London -- good morning, Malika.

MALIKA KAPUR, CNN CORRESPONDENT: Good morning, Betty.

Well, we're about two hours into the trading day here in Europe and Europe's main markets have decided to change direction just in the last couple of minutes.

And you can see here, all of its main bourses are in negative territory at the moment. But we didn't open on the down side today. Europe's main bourses opened sharply higher this morning and it just seems that some of the optimism we've seen in the market is weaning thin ahead of the weekend.

Now, one of the reasons these markets were high, and, in fact, one of the reasons we have seen stocks rise around the world over the last day or two is because the price of oil has been slipping. U.S. light has slipped. It's down about $0.18, at $39.26 a barrel at the moment. Brent crude at $36.25 a barrel, unchanged at the moment. And these prices are slipping for two reasons. We are seeing some profit taking going on in the oil market. And also because there are signs that OPEC may increase oil production when it meets in Beirut next week. So oil prices easing a little bit. But they do remain quite high. U.S. light above $39 a barrel at the moment, not that far from a high of $41.85 a barrel it hit just about two weeks ago.

And those oil prices falling today are affecting all stocks across Europe -- British Petroleum, Shell and Total, which is based in France, all in negative territory.

And there's another story today the markets in Europe are keeping a close eye on, and that's the Marks & Spencer sale. There's a billionaire in Britain now, Philip Green, and a retail billionaire, who has said he's interested in taking over Marks & Spencer, which is Britain's largest clothing seller. And that is giving the share price a very good lift. It is up more than two percent today. But if you take a look at the share price right here, towards the end of this graph, you can see that talk of a takeover bid boosted Marks & Spencer's shares by 20 percent yesterday, a very nice rally in the share price at the moment -- back to you.

NGUYEN: So some optimism in the markets on this Friday.

Like the sound of that.

Thank you, Malika.

Well, they may have to putt around the mines and bomb craters, but golf is making a comeback in Afghanistan. We take you live to Kabul for a look.

And while some little piggies were going to market, these little piggies went to a state capital. We'll explain.

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NGUYEN: You may recall yesterday's sneak preview of life returning somewhat to normal in Afghanistan. There's no grass, no manicured greens, but golf has returned to Kabul.

CNN's Ryan Chilcote has put on his knickers and polished his driver and he's ready to tee off -- hi, there.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning.

Well, it's called the Kabul Golf Club and it has had quite the remarkable history. It was opened up under the king of Afghanistan, then closed by the Soviets when they occupied this country for being too high class, if you will, too high brow, too aristocratic. After the Soviets pulled out, it was reopened under the Mujahedeen. It was a very popular place for expatriates living here in Kabul. But then it was closed again under the Taliban for just simply being too Western.

So it opened up a few weeks ago. The golfers we spoke with out there today very hopeful that it will remain open.

A little bit about the course itself. It's just $10 to play, but there weren't too many people out there; in fact, just two golfers, both of them Afghans, expatriates. Actually, both of them, in addition to enjoying playing the course, were looking at it as an investment opportunity.

It used to have grass, but it doesn't have any grass right now, very rugged terrain, really a challenging course, probably, for any even of your most experienced Western golfers, because basically when the ball hits the desert floor it can bounce, you know, it can hit a rock and really bounce in any direction possible. So it a challenge.

The greens, for example, are actually blacks. They don't have enough grass, enough water to water that grass. So instead of having greens, they have blacks, which are basically sand and oil mixed. And another difficult thing is it's difficult to follow your ball because it's so bright here. So they have a bunch of kids out there that help you track down your ball after you hit it -- Betty.

NGUYEN: Ryan, I don't guess you need any expensive golf shoes for that course.

CHILCOTE: Finding golf shoes is a challenge in Kabul. You know, interestingly enough, the golf pro -- yes, the golf pro was telling me that he spent the better part of a month looking for some golf shoes here in Kabul. He found a used pair. But apparently getting, you know, stuff like golf shoes and getting clubs is very difficult here. And obviously very difficult in terms of the money that these people have, that this golf pro, the kids that he's trying to train -- Betty.

NGUYEN: Just getting in a couple rounds is good enough.

All right, Ryan Chilcote in Kabul.

Thanks so much for that report.

Time for our DAYBREAK Eye-Opener. A bit of a problem at the Los Angeles airport. This cargo plane was being unloaded when the weight shifted, causing the plane to tip back on its tail. Seven workers in the nose of the aircraft suddenly found themselves in a precarious situation. They were rescued about an hour later by firefighters using a ladder truck.

Researchers at a university in Japan say they've come up with a new sunscreen lotion. So why are we seeing this hippo? Well, because the researchers say hippo sweat -- yes, you heard me, hippo sweat -- acts like a sunscreen. They say it also has antibiotic properties.

Now, the question is just who's going to collect it? Not me.

Well, check out South Carolina Governor Mark Sanford and a couple of friends. The governor carried these two piglets into the state capital in Colombia. Ah. He wanted to make a point that there is just too much pork in the state budget. It seems his stunt, well, it don't go over too well. The Senate overrode most of his budget vetoes.

And here's what's all new in the next half hour.

New fighting in Najaf just a day after the U.S. reaches a deal.

Heavy security as the greatest generation makes its way to Washington.

And a new talent is unleashed. Baseball's top dog shows his tricks.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Searching for profits is one of the key goals for dot-com companies. And for online portal Yahoo!, profits have come from searching, literally. The dot-com generates over 70 percent of its revenue from paid search sponsors and advertising. Paid search sponsorships allow companies to place their Web sites at the top of every search performed on Yahoo!. Despite growing profits, Yahoo! still faces strong competition from search leader Google.

(END VIDEOTAPE)

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