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CNN Live At Daybreak
Iraqi Governing Council Appoints New President for Interim Iraqi Government; In Baghdad, Explosion Near Green Zone
Aired June 01, 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: A country trying to figure out where it's going -- Iraq's Governing Council picks a president this morning, but not without some controversy.
It is Tuesday, the first day of June.
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.
The man who Washington wants to be the president of the interim Iraqi government says no thanks. So the Iraqi Governing Council, in a decision within the last couple of hours, picks civil engineer Ghazi al-Yawer to lead the government.
In central Baghdad's green zone just about five minutes ago, an explosion inside the green zone. That's where the headquarters for the U.S.-led coalition are located. It followed two blasts from mortar rounds inside the zone less than two hours ago. It's not known yet if there are casualties.
In money news, economists fear the Saturday attack on several oil company compounds in Saudi Arabia could push oil prices to record levels. So far, U.S. crude oil futures are trading below May's $42 per barrel high.
In sports, the L.A. Lakers dump the Minnesota Timberwolves 96-90 to win the Western Conference finals. The Lakers will face Detroit or Indiana for the championship.
In culture, wave to the cameras, ladies, and smile. Be sure to smile. In Quito, Ecuador, 80 women are trying to become the next Miss. Universe. The crowd, the tears, the hugs -- all that will happen tonight -- Chad.
CHAD MYERS, CNN CORRESPONDENT: It looks like a nice party.
Good morning, Carol.
(WEATHER REPORT)
COSTELLO: It looks like we now know who will be the next -- who will be the new president of Iraq when power is handed over at the end of the month. But that could change, as it already has at least once over the past few hours. Things are still being sorted out. And fortunately we have our senior international editor David Clinch with us now to help us figure it all out.
Before we get to the new president, though, there's been a blast in Baghdad.
DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes, what a night so far, and already a day, in Baghdad. A series of explosions earlier caused by mortars. We're now hearing early reports -- and I stress that -- of a possible car bomb in the center of Baghdad near the Iraqi foreign ministry building. We can show you a live picture, I believe, from Baghdad, of smoke rising on our signal from Baghdad. There you can see it just in the distance. It's a hazy day. And, again, to distinguish, there were earlier mortar explosions in Baghdad in the green zone, which we are told did not necessarily cause major damage. But this has just happened. Early reports of a car bomb.
COSTELLO: Is this inside the green zone?
CLINCH: I'd have to double check on that. I'm not sure. But I would -- as I understand it, the foreign ministry is located in the green zone. We'll double check on that, but it's certainly on that side of the river near the green zone.
COSTELLO: Well, this is disturbing because this is a heavily fortified area.
CLINCH: It is. Well, again, double check on that. But the Iraqi foreign ministry building is on the same side of the river as the green zone. I'll need to double check whether it's inside it or not. It would obviously be a heavily guarded building anyway. That foreign ministry is a functioning ministry now. It's not the old ministry, it is the building that currently houses...
COSTELLO: And, of course, a strange coincidence, since this morning the new interim president of Iraq supposedly has been named.
CLINCH: Yes. Now, here's what we're hearing so far. We had previously heard -- and with all of what's happening today, we need to remember the main job of the interim government will be the prime minister. We have heard that Allawi will be the prime minister. That had been previously announced. The last couple of days we've been watching for the other key announcement of who will be the president.
Well, as we've been sitting here in the last few hours, we had heard that Adnan Pachachi had been offered the job by both L. Paul Bremer and Lakhdar Brahimi. The U.N. envoy and the U.S. representative offered him the job.
COSTELLO: This is the man the United States wants to be president?
CLINCH: That's what we're told. There are conflicting versions from the U.S. side out to whether they had shown a preference for Pachachi or not. But in the meantime, we're now told that he, Pachachi, has turned down the nomination to be president of the interim government.
COSTELLO: At one point didn't he accept and then turn it down?
CLINCH: We had not heard that. We certainly had heard that he was interested in the position. But within the last few hours, we've been told that he had been officially offered it and he has turned it down. He has deferred to the person who the Governing Council, the Iraqi Governing Council, has chosen as their nominee. This man had been the person, al-Yawer, who is the current rotating president of the Governing Council after the previous Governing Council leader was killed.
Ghazi al-Yawer, you can see here, a civil engineer, a Sunni Muslim, leader of a prominent tribe. He's actually, to be accurate, the nephew of the absolute leader of this prominent Shammar tribe in the northern Iraq city of Mosul. He was in exile, ran a telecom business in Saudi Arabia for 15 years and then came back.
He, a favorite of the Governing Council. He has accepted the position. So as far as we know right now, he will be the president.
COSTELLO: And before we go on with that, we want to go to Harris Whitbeck, who is in Baghdad, to find out more about this explosion.
CLINCH: OK.
COSTELLO: And you say that explosion happened literally, what, behind you -- Harris.
HARRIS WHITBECK, CNN CORRESPONDENT: Carol, that's correct.
We are in the green zone. We are -- I can't tell you exactly where we are for security reasons, but we are at the location where the presentation ceremony of the new interim government will take place at some point today. And I believe you can see the plume of smoke behind me. It seemed to have been a car bomb which went off literally about six or seven minutes ago.
After that explosion, we heard a lot of gunfire in that area, which is, I'd say, at least a mile from where we are located here. We cannot tell whether the explosion occurred within the confines of the green zone or outside of it. But from the looks of the smoke and the sound of it, it sounded like it was some sort of car bomb.
Security is extremely tight around this location. We endured about three and a half, almost four hours of different security clearances and checks just to be able to get into this area, where, again, the confirmation of the new interim Iraqi government will be announced. It will be formally presented to the Iraqi people at some point -- Carol.
COSTELLO: In talking about this blast, how unusual is it for an attack to happen at that particular location? WHITBECK: Well, again, it's hard to determine exactly where it was. But as you know, there have been car bombs going off quite frequently here for quite some time. Earlier today, we also heard a couple of mortar rounds going off, apparently also inside the green zone. Whether this has anything to do with the events that will take place today or not, it is hard to say.
I can tell you, though, that, again, security measures are extremely tight, because people want to prevent anything from happening that might mar this presentation ceremony.
COSTELLO: And how long did those attacks occur after the new interim Iraqi president was named?
WHITBECK: Well, the announcement was made about, I guess about an hour 10 minutes ago, an hour 11, 12 minutes ago. There was some mortar fire before the announcement was made. That was earlier this morning. This bomb happened, as I say, about six or seven minutes ago.
Again, we can't say whether this is directly related, if this is some sort of message related to the presentation ceremony or not. As you know, yesterday there was a car bomb that also went off not too far from the green zone. And just two weeks ago yesterday another car bomb went off at a checkpoint that serves as an entrance to the green zone, in which the then president of the Iraqi Governing Council was killed.
COSTELLO: Can you tell us what will happen now as far as the announcement to the greater public in Iraq on this new interim president?
WHITBECK: We have very few details and that is, again, because of security concerns. We do know that at some point today there will be an official declaration, an official presentation of these names that we have been discussing for several days. And then the confirmation of the cabinet itself will then be announced by the person who will be interim prime minister.
The announcement of the presidential council will be made by Dr. Lakhdar Brahimi from the United Nations.
COSTELLO: All right, Harris Whitbeck live in Baghdad.
Stay safe there.
Back to you -- David.
I wanted to ask you one more question about Sheik Ghazi al-Yawer, who is apparently the new interim president.
CLINCH: Yes?
COSTELLO: Why does the United States somewhat object to him?
CLINCH: Well, that's a good question. We're not necessarily getting indications that they had a strong indication to al-Yawer. I mean the indication was earlier that they had a preference for Pachachi. So there's not necessarily anything very negative.
Al-Yawer, over the last few months, we've been speaking to him a lot over the last few months. He has made the point that he, as a Sunni and a tribal leader, has been feeling that the U.S. has been showing too much preference for the Shia and the Kurds, remembering that the U.S. had very established relationships with the Shia and Kurds in exile, whereas the Sunnis, who were in power and in some ways associated with Saddam Hussein, did not necessarily have those strong direct connections with the U.S. over the last few years.
But, on the other hand, here's a man who's educated at Georgetown University. So there can't necessarily be too many of the...
COSTELLO: But doesn't he want more power than the United States wants the president to have?
CLINCH: Well, this is the key. On the same day as he is being announced as president, the Iraqi foreign minister is on his way back to the U.N. again to push for full and total sovereignty, something that al-Yawer has been pushing for. So that perhaps is a negative. Not speculating. He is definitely pushing for full sovereignty. The question of whether that will happen will only be revealed over the next few weeks.
COSTELLO: All right, thank you very much, David.
CLINCH: Yes.
COSTELLO: You'll be back with us later.
For more on this attack, the latest attack that Harris was talking about, including details on how the day long -- oh, this is the hostage stand-off in Saudi Arabia. I apologize. But log onto our Web site, cnn.com. You can find a host of information there on a number of topics.
Opening statements are set for today in the trial of Scott Peterson. It took 12 weeks to seat the jury and it could be another six months before there's a verdict.
CNN's David Mattingly takes a look at the trial from Redwood City, California.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): The next time Scott Peterson steps into court, his every move and expression will be under scrutiny by a jury of six men and six women charged with a difficult question -- is he truly a remorseless and deceitful killer, who prosecutors say murdered his pregnant wife Laci and dumped her body in the waters of San Francisco Bay.
CHUCK SMITH, FORMER HOMICIDE PROSECUTOR: That is the theme. And arguing to the jury that he's such a good liar, he's going to lie to you.
MATTINGLY: There is already no doubt that Peterson was a cheating husband. Girlfriend Amber Frey says he convinced her he was a widower, saying he believed they had a future together, words that prosecutors plan to use against him, along with wiretaps, as they attack his credibility.
But the case against Peterson is largely circumstantial, with no murder weapon, no clear cause of death or murder scene. Defense attorney Mark Geragos will argue investigators ignored credible witnesses who reported a mysterious van in the neighborhood the morning of Laci's reported disappearance.
SMITH: One measure of doubt based on fact, based on evidence, that's all he has to establish.
MATTINGLY: Barricades outside the courthouse stand ready for the crowd of working media as the Christmas Eve disappearance of a Modesto housewife in 2002 becomes the most talked about death penalty trial of 2004.
(on camera): Tuesday's opening arguments will set the tone for proceedings that are expected to drag for months, months before a jury decides on Scott Peterson's guilt or innocence.
David Martin, CBS News, Redwood City, California.
(END VIDEOTAPE)
COSTELLO: Coming up in the second hour of DAYBREAK, our legal expert Kendall Coffey will join with some Coffey talk on what we can expect in the Scott Peterson trial, so stick around.
We're just getting started on DAYBREAK. Here's a question -- have you missed the boat on refinancing your house? We'll tell you about making money on your mortgage.
He's been convicted in the Oklahoma City bombing. Now will Terry Nichols be sentenced to death? That penalty phase begins today.
And from allergy treatments to taking your meds to wearing your contacts safely, we've got the low down on what not to do.
Plus, it's all about the music and the family ties that bind. We'll take you to the mountains of North Carolina and Merlefest.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:16 Eastern.
Here's what's all new this morning.
Just over an hour ago, the Iraqi Governing Council voted to keep current president, Sheikh Ghazi al-Yawer, in the post when power is transferred June 30. The U.S.-led coalition, which wanted Adnan Pachachi to lead the country -- Pachachi refused.
Two attacks today near the coalition's green zone. Two mortars landed in the area, but there is no word on damage or injuries. And just minutes ago, another explosion and gunfire.
In money news, Miller and Bud have taken their beer battle to China. Anheuser-Busch topped an offer by Miller for a chance at owning a leading local brewery in northern China.
In sports, things are getting routine in San Francisco. Barry Bonds hit a home run again. And the Giants won again. Their tenth straight victory marks the team's longest winning streak in six years.
In culture, the Pulitzer Prize people are changing their tune. For the first time, entries will be accepted from jazz, musical theater and movies -- Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
On the campaign trail today, Democrat John Kerry begins a two day swing through the crucial state of Florida. In his speeches, he's expected to say that nuclear terrorism is the gravest threat to the United States. He's also expected to announce how he plans to prevent a terrorist attack using nuclear weapons.
President Bush will put his plan for so-called faith-based initiatives back in the spotlight. He'll talk about it at the national White House conference of community leaders today in Washington. The plan allows religious-based groups to compete for government money to help the needy.
Vice President Dick Cheney will travel to Kansas City, Missouri today. He'll talk about the Patriot Act at a campaign event for President Bush's reelection campaign. The anti-terrorism law gives intelligence and law enforcement sweeping new surveillance powers.
And coming up in our next hour, today's hot topic with our radio talkers is election 2004 -- from campaign attack ads to oil prices.
Time now to check the overseas markets to see what Wall Street will be watching after a long holiday weekend.
For that, we head live to London and Todd Benjamin.
And I bet the price of oil will be watched very closely today.
TODD BENJAMIN, CNN CORRESPONDENT: Carol, absolutely right.
Traders will be keeping a very close eye on the price of oil. Now, in electronic trading ahead of the actual physical trading of oil in New York later in the day, we are up over a buck, $1.07, to be exact, at $40.95. So just under $41 a barrel. And remember, the highs we got to were about $41.85 a barrel.
Of course, all this follows the events over the weekend in Saudi Arabia, in which militants killed 22 people. And there are fears among dealers that the terrorists may shift their targets from soft targets to actually try and go after the oil fields. And if they did that, of course, and were successful, the price of oil would just shoot right through the roof.
So today we're having a bounce of about better than a dollar a barrel. We're seeing that also being reflected in the stock markets right now in Europe. Both the CAC in Paris and the DAX in Frankfurt are down better than one percent. The FTSE is off about a quarter of one percent and the futures market for trading in the U.S. shows that when the stock market opens in the U.S., it will be a lower open, all because of nervousness about the price of oil -- Carol, back to you.
COSTELLO: Todd Benjamin live in London for us this morning.
The cliche when you snooze you lose certainly rings true when it comes to refinancing your home. Around this time of year, mortgage rates had hit rock bottom. But now, oh, they're heading up again and the big time savings may be gone.
Here's more from CNN's Kathleen Hays.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN FINANCIAL NEWS ECONOMICS CORRESPONDENT (voice- over): For three years, running, Barry Habib's phone was ringing off the hook as a drop in mortgage rates to 45-year lows spurred a tidal wave of mortgage refinancing.
BARRY HABIB, C&O MORTGAGE MARKET GUIDE: It was complete lunacy because at any moment in time you'd have five or six people on hold waiting to say, please take my mortgage application because I want to refinance because rates were so low and there was such an amount of saving to be had.
HAYS: Habib says business has slowed and he's the one making the calls now because mortgage rates have turned sharply higher, from a low of 5 percent in June of last year, the 30-year fixed mortgage rate has jumped to over 6.2 percent. Habib says the refinancing tide has definitely turned, but you can still catch the wave if you try.
HABIB: Have you missed the boat? Yes, you've missed the boat but it may still make sense to refinance under certain conditions. Depends on what your objectives are.
HAYS: Here are some rules of thumb from the experts. Only consider refinancing if you can cut your mortgage rate by at least 1 full percentage point. Make sure you can recover the cost of the mortgage refinancing in two years or less, otherwise you're not saving enough money. Consider the piggy bank strategy where you refinance, not to cut your monthly payment but to get your hands on a wad of cash, money you can use to remodel, pay college tuition or maybe just pay off expensive credit card bills. UNIDENTIFIED MALE: Last year when mortgage rates were so low, most people who refinanced did it because they wanted to obtain a lower interest rate. I think it will be a complete reversal later this year where most people who are refinancing will really be doing it for cash-out purposes.
HAYS (on camera): If cash is what you want, home equity loans can also be a great choice. The rates are still quite low and a big chunk is tax deductible. But be aware, these loans carry adjustability rates but are also expected to move higher later this year.
Kathleen Hays, CNN Financial News, New York.
(END VIDEOTAPE)
COSTELLO: From "The Apprentice" to the Miss. Universe pageant, runner-up Kwame Jackson once again hears that phrase "you're fired." We'll tell you why this time.
And America's favorite pretty woman may soon be eating for three. We'll explain.
(COMMERCIAL BREAK)
COSTELLO: I'm sipping tea because I may lose my voice through the show, so I will turn to you -- Chad.
MYERS: Well, I don't read those words up there, so if we're going to do an hour and a half's worth of news...
COSTELLO: It's Adnan Pachachi.
MYERS: It's -- we're going to adlib an hour and a half's worth of news. You never know what might pop up.
You know what? Kwame got fired.
COSTELLO: Isn't this -- again.
MYERS: Again. You know...
COSTELLO: You'd think -- I can't -- see, I can't speak. I can't even speak...
MYERS: "The Apprentice" guy.
COSTELLO: Yes, him.
MYERS: He was supposed to be a judge for the Miss. Universe pageant. Well, he bumps into some of the contestants in the hotel and waves at them.
COSTELLO: He was just being friendly. He was just saying hi.
MYERS: You can't do that, according to the judges. No, no, no. COSTELLO: You cannot speak at all to the contestants of the Miss. Universe pageant.
MYERS: You cannot even raise your hand and wave at them.
COSTELLO: Especially when you're a judge, because I guess that would be a conflict of interest.
MYERS: He had friends that flew down, so they were meeting him in the hotel lobby. He bumped into some of the contestants and they recognized him from the show and they didn't even know he was a judge.
COSTELLO: And they tattled on him?
MYERS: And they waved at him and he waved back, and he got fired.
COSTELLO: Oh, poor Kwame. I'm sure he'll find something else. He said he was just trying to have fun and he honestly had no idea that that hotel was off limits.
MYERS: You know what? If there are 80 beautiful women in the hotel, I'm going to wave at a couple of them.
COSTELLO: You can wave at beautiful women, just not be contestants.
MYERS: Not if you're a judge.
COSTELLO: Yes.
Did you hear about this 114-year-old woman?
MYERS: Yes.
COSTELLO: She just died. But 114 years old. Officially the oldest living person until, of course, yesterday. Her name was Ramona Trinidad Inglesias Jordan. She lived in Puerto Rico. And she had dinner and a beer every night and that was the secret to her longevity.
MYERS: I don't want to hear anything else on that.
COSTELLO: You're just glad the beer part's in there, aren't you?
MYERS: This young lady, this lady really was a great part of her society and her little community, as well. She did great things for the community. Everybody called her grandma, obviously, if she's 114.
COSTELLO: Obviously.
MYERS: So...
COSTELLO: She was born the same year as Charlie Chaplin.
MYERS: They think that other people are older, but no one that can actually prove it. Right, she has the birth certificate, she has the date, she has it and so she was 114.
COSTELLO: Yes.
Thank you, Chad, for joining me on the set.
MYERS: You're welcome.
COSTELLO: But just be ready.
MYERS: I'm not ready.
COSTELLO: Time for our DAYBREAK Eye-Openers right now.
Briana Grimes may be ready for her own phone. The 3-year-old did not hesitate to pick up the phone and call 911 when her mother passed out with a high temperature. An emergency operator kept Briana on the phone and even had her open the door for the paramedics. Mother Christina Grimes is not only feeling better, but feeling proud of her not so little girl anymore.
It was a chicken's worst nightmare in Bellaire, Texas after a truck carrying eggs overturned on the highway. Thirty thousand pounds of eggs spilled over the road, leaving a stinky mess for cleanup crews. Can you imagine 30,000 broken eggs? Pressure washers and special cleaning solutions were used to try to keep down the smell.
A baby or two may be in the near future for Oscar winning actress Julia Roberts. A spokesman for the 36-year-old actress tells "People" magazine that Roberts is pregnant with twins. She's married to cinematographer Daniel Moder.
And here's what's all new in the next half hour of DAYBREAK.
Leaders in Iraq take steps to put a new president into place. But could there be a backlash? We'll get the latest for you in a live report.
And all's quiet in Najaf, at least for now. But a crash course in In survival and the uncharacteristic calm has some U.S. soldiers on edge.
Also, the sentencing phase begins for an accused bomber. Could Terry Nichols be heading to death row?
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
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Aired June 1, 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: A country trying to figure out where it's going -- Iraq's Governing Council picks a president this morning, but not without some controversy.
It is Tuesday, the first day of June.
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.
The man who Washington wants to be the president of the interim Iraqi government says no thanks. So the Iraqi Governing Council, in a decision within the last couple of hours, picks civil engineer Ghazi al-Yawer to lead the government.
In central Baghdad's green zone just about five minutes ago, an explosion inside the green zone. That's where the headquarters for the U.S.-led coalition are located. It followed two blasts from mortar rounds inside the zone less than two hours ago. It's not known yet if there are casualties.
In money news, economists fear the Saturday attack on several oil company compounds in Saudi Arabia could push oil prices to record levels. So far, U.S. crude oil futures are trading below May's $42 per barrel high.
In sports, the L.A. Lakers dump the Minnesota Timberwolves 96-90 to win the Western Conference finals. The Lakers will face Detroit or Indiana for the championship.
In culture, wave to the cameras, ladies, and smile. Be sure to smile. In Quito, Ecuador, 80 women are trying to become the next Miss. Universe. The crowd, the tears, the hugs -- all that will happen tonight -- Chad.
CHAD MYERS, CNN CORRESPONDENT: It looks like a nice party.
Good morning, Carol.
(WEATHER REPORT)
COSTELLO: It looks like we now know who will be the next -- who will be the new president of Iraq when power is handed over at the end of the month. But that could change, as it already has at least once over the past few hours. Things are still being sorted out. And fortunately we have our senior international editor David Clinch with us now to help us figure it all out.
Before we get to the new president, though, there's been a blast in Baghdad.
DAVID CLINCH, CNN INTERNATIONAL EDITOR: Yes, what a night so far, and already a day, in Baghdad. A series of explosions earlier caused by mortars. We're now hearing early reports -- and I stress that -- of a possible car bomb in the center of Baghdad near the Iraqi foreign ministry building. We can show you a live picture, I believe, from Baghdad, of smoke rising on our signal from Baghdad. There you can see it just in the distance. It's a hazy day. And, again, to distinguish, there were earlier mortar explosions in Baghdad in the green zone, which we are told did not necessarily cause major damage. But this has just happened. Early reports of a car bomb.
COSTELLO: Is this inside the green zone?
CLINCH: I'd have to double check on that. I'm not sure. But I would -- as I understand it, the foreign ministry is located in the green zone. We'll double check on that, but it's certainly on that side of the river near the green zone.
COSTELLO: Well, this is disturbing because this is a heavily fortified area.
CLINCH: It is. Well, again, double check on that. But the Iraqi foreign ministry building is on the same side of the river as the green zone. I'll need to double check whether it's inside it or not. It would obviously be a heavily guarded building anyway. That foreign ministry is a functioning ministry now. It's not the old ministry, it is the building that currently houses...
COSTELLO: And, of course, a strange coincidence, since this morning the new interim president of Iraq supposedly has been named.
CLINCH: Yes. Now, here's what we're hearing so far. We had previously heard -- and with all of what's happening today, we need to remember the main job of the interim government will be the prime minister. We have heard that Allawi will be the prime minister. That had been previously announced. The last couple of days we've been watching for the other key announcement of who will be the president.
Well, as we've been sitting here in the last few hours, we had heard that Adnan Pachachi had been offered the job by both L. Paul Bremer and Lakhdar Brahimi. The U.N. envoy and the U.S. representative offered him the job.
COSTELLO: This is the man the United States wants to be president?
CLINCH: That's what we're told. There are conflicting versions from the U.S. side out to whether they had shown a preference for Pachachi or not. But in the meantime, we're now told that he, Pachachi, has turned down the nomination to be president of the interim government.
COSTELLO: At one point didn't he accept and then turn it down?
CLINCH: We had not heard that. We certainly had heard that he was interested in the position. But within the last few hours, we've been told that he had been officially offered it and he has turned it down. He has deferred to the person who the Governing Council, the Iraqi Governing Council, has chosen as their nominee. This man had been the person, al-Yawer, who is the current rotating president of the Governing Council after the previous Governing Council leader was killed.
Ghazi al-Yawer, you can see here, a civil engineer, a Sunni Muslim, leader of a prominent tribe. He's actually, to be accurate, the nephew of the absolute leader of this prominent Shammar tribe in the northern Iraq city of Mosul. He was in exile, ran a telecom business in Saudi Arabia for 15 years and then came back.
He, a favorite of the Governing Council. He has accepted the position. So as far as we know right now, he will be the president.
COSTELLO: And before we go on with that, we want to go to Harris Whitbeck, who is in Baghdad, to find out more about this explosion.
CLINCH: OK.
COSTELLO: And you say that explosion happened literally, what, behind you -- Harris.
HARRIS WHITBECK, CNN CORRESPONDENT: Carol, that's correct.
We are in the green zone. We are -- I can't tell you exactly where we are for security reasons, but we are at the location where the presentation ceremony of the new interim government will take place at some point today. And I believe you can see the plume of smoke behind me. It seemed to have been a car bomb which went off literally about six or seven minutes ago.
After that explosion, we heard a lot of gunfire in that area, which is, I'd say, at least a mile from where we are located here. We cannot tell whether the explosion occurred within the confines of the green zone or outside of it. But from the looks of the smoke and the sound of it, it sounded like it was some sort of car bomb.
Security is extremely tight around this location. We endured about three and a half, almost four hours of different security clearances and checks just to be able to get into this area, where, again, the confirmation of the new interim Iraqi government will be announced. It will be formally presented to the Iraqi people at some point -- Carol.
COSTELLO: In talking about this blast, how unusual is it for an attack to happen at that particular location? WHITBECK: Well, again, it's hard to determine exactly where it was. But as you know, there have been car bombs going off quite frequently here for quite some time. Earlier today, we also heard a couple of mortar rounds going off, apparently also inside the green zone. Whether this has anything to do with the events that will take place today or not, it is hard to say.
I can tell you, though, that, again, security measures are extremely tight, because people want to prevent anything from happening that might mar this presentation ceremony.
COSTELLO: And how long did those attacks occur after the new interim Iraqi president was named?
WHITBECK: Well, the announcement was made about, I guess about an hour 10 minutes ago, an hour 11, 12 minutes ago. There was some mortar fire before the announcement was made. That was earlier this morning. This bomb happened, as I say, about six or seven minutes ago.
Again, we can't say whether this is directly related, if this is some sort of message related to the presentation ceremony or not. As you know, yesterday there was a car bomb that also went off not too far from the green zone. And just two weeks ago yesterday another car bomb went off at a checkpoint that serves as an entrance to the green zone, in which the then president of the Iraqi Governing Council was killed.
COSTELLO: Can you tell us what will happen now as far as the announcement to the greater public in Iraq on this new interim president?
WHITBECK: We have very few details and that is, again, because of security concerns. We do know that at some point today there will be an official declaration, an official presentation of these names that we have been discussing for several days. And then the confirmation of the cabinet itself will then be announced by the person who will be interim prime minister.
The announcement of the presidential council will be made by Dr. Lakhdar Brahimi from the United Nations.
COSTELLO: All right, Harris Whitbeck live in Baghdad.
Stay safe there.
Back to you -- David.
I wanted to ask you one more question about Sheik Ghazi al-Yawer, who is apparently the new interim president.
CLINCH: Yes?
COSTELLO: Why does the United States somewhat object to him?
CLINCH: Well, that's a good question. We're not necessarily getting indications that they had a strong indication to al-Yawer. I mean the indication was earlier that they had a preference for Pachachi. So there's not necessarily anything very negative.
Al-Yawer, over the last few months, we've been speaking to him a lot over the last few months. He has made the point that he, as a Sunni and a tribal leader, has been feeling that the U.S. has been showing too much preference for the Shia and the Kurds, remembering that the U.S. had very established relationships with the Shia and Kurds in exile, whereas the Sunnis, who were in power and in some ways associated with Saddam Hussein, did not necessarily have those strong direct connections with the U.S. over the last few years.
But, on the other hand, here's a man who's educated at Georgetown University. So there can't necessarily be too many of the...
COSTELLO: But doesn't he want more power than the United States wants the president to have?
CLINCH: Well, this is the key. On the same day as he is being announced as president, the Iraqi foreign minister is on his way back to the U.N. again to push for full and total sovereignty, something that al-Yawer has been pushing for. So that perhaps is a negative. Not speculating. He is definitely pushing for full sovereignty. The question of whether that will happen will only be revealed over the next few weeks.
COSTELLO: All right, thank you very much, David.
CLINCH: Yes.
COSTELLO: You'll be back with us later.
For more on this attack, the latest attack that Harris was talking about, including details on how the day long -- oh, this is the hostage stand-off in Saudi Arabia. I apologize. But log onto our Web site, cnn.com. You can find a host of information there on a number of topics.
Opening statements are set for today in the trial of Scott Peterson. It took 12 weeks to seat the jury and it could be another six months before there's a verdict.
CNN's David Mattingly takes a look at the trial from Redwood City, California.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): The next time Scott Peterson steps into court, his every move and expression will be under scrutiny by a jury of six men and six women charged with a difficult question -- is he truly a remorseless and deceitful killer, who prosecutors say murdered his pregnant wife Laci and dumped her body in the waters of San Francisco Bay.
CHUCK SMITH, FORMER HOMICIDE PROSECUTOR: That is the theme. And arguing to the jury that he's such a good liar, he's going to lie to you.
MATTINGLY: There is already no doubt that Peterson was a cheating husband. Girlfriend Amber Frey says he convinced her he was a widower, saying he believed they had a future together, words that prosecutors plan to use against him, along with wiretaps, as they attack his credibility.
But the case against Peterson is largely circumstantial, with no murder weapon, no clear cause of death or murder scene. Defense attorney Mark Geragos will argue investigators ignored credible witnesses who reported a mysterious van in the neighborhood the morning of Laci's reported disappearance.
SMITH: One measure of doubt based on fact, based on evidence, that's all he has to establish.
MATTINGLY: Barricades outside the courthouse stand ready for the crowd of working media as the Christmas Eve disappearance of a Modesto housewife in 2002 becomes the most talked about death penalty trial of 2004.
(on camera): Tuesday's opening arguments will set the tone for proceedings that are expected to drag for months, months before a jury decides on Scott Peterson's guilt or innocence.
David Martin, CBS News, Redwood City, California.
(END VIDEOTAPE)
COSTELLO: Coming up in the second hour of DAYBREAK, our legal expert Kendall Coffey will join with some Coffey talk on what we can expect in the Scott Peterson trial, so stick around.
We're just getting started on DAYBREAK. Here's a question -- have you missed the boat on refinancing your house? We'll tell you about making money on your mortgage.
He's been convicted in the Oklahoma City bombing. Now will Terry Nichols be sentenced to death? That penalty phase begins today.
And from allergy treatments to taking your meds to wearing your contacts safely, we've got the low down on what not to do.
Plus, it's all about the music and the family ties that bind. We'll take you to the mountains of North Carolina and Merlefest.
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COSTELLO: Your news, money, weather and sports.
It is 5:16 Eastern.
Here's what's all new this morning.
Just over an hour ago, the Iraqi Governing Council voted to keep current president, Sheikh Ghazi al-Yawer, in the post when power is transferred June 30. The U.S.-led coalition, which wanted Adnan Pachachi to lead the country -- Pachachi refused.
Two attacks today near the coalition's green zone. Two mortars landed in the area, but there is no word on damage or injuries. And just minutes ago, another explosion and gunfire.
In money news, Miller and Bud have taken their beer battle to China. Anheuser-Busch topped an offer by Miller for a chance at owning a leading local brewery in northern China.
In sports, things are getting routine in San Francisco. Barry Bonds hit a home run again. And the Giants won again. Their tenth straight victory marks the team's longest winning streak in six years.
In culture, the Pulitzer Prize people are changing their tune. For the first time, entries will be accepted from jazz, musical theater and movies -- Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
On the campaign trail today, Democrat John Kerry begins a two day swing through the crucial state of Florida. In his speeches, he's expected to say that nuclear terrorism is the gravest threat to the United States. He's also expected to announce how he plans to prevent a terrorist attack using nuclear weapons.
President Bush will put his plan for so-called faith-based initiatives back in the spotlight. He'll talk about it at the national White House conference of community leaders today in Washington. The plan allows religious-based groups to compete for government money to help the needy.
Vice President Dick Cheney will travel to Kansas City, Missouri today. He'll talk about the Patriot Act at a campaign event for President Bush's reelection campaign. The anti-terrorism law gives intelligence and law enforcement sweeping new surveillance powers.
And coming up in our next hour, today's hot topic with our radio talkers is election 2004 -- from campaign attack ads to oil prices.
Time now to check the overseas markets to see what Wall Street will be watching after a long holiday weekend.
For that, we head live to London and Todd Benjamin.
And I bet the price of oil will be watched very closely today.
TODD BENJAMIN, CNN CORRESPONDENT: Carol, absolutely right.
Traders will be keeping a very close eye on the price of oil. Now, in electronic trading ahead of the actual physical trading of oil in New York later in the day, we are up over a buck, $1.07, to be exact, at $40.95. So just under $41 a barrel. And remember, the highs we got to were about $41.85 a barrel.
Of course, all this follows the events over the weekend in Saudi Arabia, in which militants killed 22 people. And there are fears among dealers that the terrorists may shift their targets from soft targets to actually try and go after the oil fields. And if they did that, of course, and were successful, the price of oil would just shoot right through the roof.
So today we're having a bounce of about better than a dollar a barrel. We're seeing that also being reflected in the stock markets right now in Europe. Both the CAC in Paris and the DAX in Frankfurt are down better than one percent. The FTSE is off about a quarter of one percent and the futures market for trading in the U.S. shows that when the stock market opens in the U.S., it will be a lower open, all because of nervousness about the price of oil -- Carol, back to you.
COSTELLO: Todd Benjamin live in London for us this morning.
The cliche when you snooze you lose certainly rings true when it comes to refinancing your home. Around this time of year, mortgage rates had hit rock bottom. But now, oh, they're heading up again and the big time savings may be gone.
Here's more from CNN's Kathleen Hays.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN FINANCIAL NEWS ECONOMICS CORRESPONDENT (voice- over): For three years, running, Barry Habib's phone was ringing off the hook as a drop in mortgage rates to 45-year lows spurred a tidal wave of mortgage refinancing.
BARRY HABIB, C&O MORTGAGE MARKET GUIDE: It was complete lunacy because at any moment in time you'd have five or six people on hold waiting to say, please take my mortgage application because I want to refinance because rates were so low and there was such an amount of saving to be had.
HAYS: Habib says business has slowed and he's the one making the calls now because mortgage rates have turned sharply higher, from a low of 5 percent in June of last year, the 30-year fixed mortgage rate has jumped to over 6.2 percent. Habib says the refinancing tide has definitely turned, but you can still catch the wave if you try.
HABIB: Have you missed the boat? Yes, you've missed the boat but it may still make sense to refinance under certain conditions. Depends on what your objectives are.
HAYS: Here are some rules of thumb from the experts. Only consider refinancing if you can cut your mortgage rate by at least 1 full percentage point. Make sure you can recover the cost of the mortgage refinancing in two years or less, otherwise you're not saving enough money. Consider the piggy bank strategy where you refinance, not to cut your monthly payment but to get your hands on a wad of cash, money you can use to remodel, pay college tuition or maybe just pay off expensive credit card bills. UNIDENTIFIED MALE: Last year when mortgage rates were so low, most people who refinanced did it because they wanted to obtain a lower interest rate. I think it will be a complete reversal later this year where most people who are refinancing will really be doing it for cash-out purposes.
HAYS (on camera): If cash is what you want, home equity loans can also be a great choice. The rates are still quite low and a big chunk is tax deductible. But be aware, these loans carry adjustability rates but are also expected to move higher later this year.
Kathleen Hays, CNN Financial News, New York.
(END VIDEOTAPE)
COSTELLO: From "The Apprentice" to the Miss. Universe pageant, runner-up Kwame Jackson once again hears that phrase "you're fired." We'll tell you why this time.
And America's favorite pretty woman may soon be eating for three. We'll explain.
(COMMERCIAL BREAK)
COSTELLO: I'm sipping tea because I may lose my voice through the show, so I will turn to you -- Chad.
MYERS: Well, I don't read those words up there, so if we're going to do an hour and a half's worth of news...
COSTELLO: It's Adnan Pachachi.
MYERS: It's -- we're going to adlib an hour and a half's worth of news. You never know what might pop up.
You know what? Kwame got fired.
COSTELLO: Isn't this -- again.
MYERS: Again. You know...
COSTELLO: You'd think -- I can't -- see, I can't speak. I can't even speak...
MYERS: "The Apprentice" guy.
COSTELLO: Yes, him.
MYERS: He was supposed to be a judge for the Miss. Universe pageant. Well, he bumps into some of the contestants in the hotel and waves at them.
COSTELLO: He was just being friendly. He was just saying hi.
MYERS: You can't do that, according to the judges. No, no, no. COSTELLO: You cannot speak at all to the contestants of the Miss. Universe pageant.
MYERS: You cannot even raise your hand and wave at them.
COSTELLO: Especially when you're a judge, because I guess that would be a conflict of interest.
MYERS: He had friends that flew down, so they were meeting him in the hotel lobby. He bumped into some of the contestants and they recognized him from the show and they didn't even know he was a judge.
COSTELLO: And they tattled on him?
MYERS: And they waved at him and he waved back, and he got fired.
COSTELLO: Oh, poor Kwame. I'm sure he'll find something else. He said he was just trying to have fun and he honestly had no idea that that hotel was off limits.
MYERS: You know what? If there are 80 beautiful women in the hotel, I'm going to wave at a couple of them.
COSTELLO: You can wave at beautiful women, just not be contestants.
MYERS: Not if you're a judge.
COSTELLO: Yes.
Did you hear about this 114-year-old woman?
MYERS: Yes.
COSTELLO: She just died. But 114 years old. Officially the oldest living person until, of course, yesterday. Her name was Ramona Trinidad Inglesias Jordan. She lived in Puerto Rico. And she had dinner and a beer every night and that was the secret to her longevity.
MYERS: I don't want to hear anything else on that.
COSTELLO: You're just glad the beer part's in there, aren't you?
MYERS: This young lady, this lady really was a great part of her society and her little community, as well. She did great things for the community. Everybody called her grandma, obviously, if she's 114.
COSTELLO: Obviously.
MYERS: So...
COSTELLO: She was born the same year as Charlie Chaplin.
MYERS: They think that other people are older, but no one that can actually prove it. Right, she has the birth certificate, she has the date, she has it and so she was 114.
COSTELLO: Yes.
Thank you, Chad, for joining me on the set.
MYERS: You're welcome.
COSTELLO: But just be ready.
MYERS: I'm not ready.
COSTELLO: Time for our DAYBREAK Eye-Openers right now.
Briana Grimes may be ready for her own phone. The 3-year-old did not hesitate to pick up the phone and call 911 when her mother passed out with a high temperature. An emergency operator kept Briana on the phone and even had her open the door for the paramedics. Mother Christina Grimes is not only feeling better, but feeling proud of her not so little girl anymore.
It was a chicken's worst nightmare in Bellaire, Texas after a truck carrying eggs overturned on the highway. Thirty thousand pounds of eggs spilled over the road, leaving a stinky mess for cleanup crews. Can you imagine 30,000 broken eggs? Pressure washers and special cleaning solutions were used to try to keep down the smell.
A baby or two may be in the near future for Oscar winning actress Julia Roberts. A spokesman for the 36-year-old actress tells "People" magazine that Roberts is pregnant with twins. She's married to cinematographer Daniel Moder.
And here's what's all new in the next half hour of DAYBREAK.
Leaders in Iraq take steps to put a new president into place. But could there be a backlash? We'll get the latest for you in a live report.
And all's quiet in Najaf, at least for now. But a crash course in In survival and the uncharacteristic calm has some U.S. soldiers on edge.
Also, the sentencing phase begins for an accused bomber. Could Terry Nichols be heading to death row?
This is DAYBREAK for Tuesday.
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