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CNN Live At Daybreak
Recapping Yesterday's Developments in Scott Peterson Double Murder Trial; What Might Happen at Today's OPEC Meeting
Aired June 03, 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: Ahmad Chalabi -- is he a U.S. supporter, a spy or a scapegoat? There are new developments overnight to tell you about.
It is Thursday, June 3.
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.
Military action this morning in the Iraqi city of Kufa. U.S. troops backed by tanks kill 30 insurgents who were firing mortars at a forward operating base. Four Americans are wounded.
"Stone cold innocent," that's how Scott Peterson's attorney describes his client. Opening statements in the murder trial are over and the prosecution has called its first witness.
In money news, as the OPEC meeting gets under way in Beirut, crude oil prices are on a roller coaster ride. The price is down to $39.96 a barrel. That's actually down more than $2 from Tuesday's record high. Just the day before, the price zoomed up more than two bucks.
In sports, Smarty Jones is the odds on favorite to win Saturday's Belmont Stakes and the first Triple Crown in 26 years. Odds makers make the undefeated horse the 2-5 favorite in the race.
In culture, former President Bill Clinton is the featured speaker tonight at the publishing industry's annual convention in Chicago. His memoir, "My Life," will be published on June 22 -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: New developments overnight in the controversy over Ahmad Chalabi. The "New York Times" reports polygraph testing going on right now at the Pentagon -- or, actually, it'll probably go on later this morning. Federal investigators are trying to find out who might have leaked classified intelligence to Chalabi. He's the former friend of the Bush administration who has recently fallen out of favor. Anonymous government officials have said Chalabi told Iran that the U.S. had cracked codes used by Iranian intelligence.
Chalabi calls the charge "stupid and false." His attorneys, in a letter we just received here at CNN, goes even farther. It says, and I quote, "Dr. Chalabi denies all charges which have been anonymously leaked to the press. Dr. Chalabi would never endanger the national security of the United States." And the letter continues, "Dr. Chalabi is willing and ready to come to Washington, D.C. to be interviewed fully by law enforcement agents on the subject and to answer all questions on the subject fully and without reservation."
One possible hitch -- legal experts say Chalabi could be prosecuted under U.S. law and could actually be arrested if he returns to the United States. He's in Iraq now.
In the meantime, there is another leak investigation going on in Washington. And in this one President Bush may be the one answering the questions.
CNN White House correspondent Suzanne Malveaux tells us why.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): The White House confirms President Bush has consulted a private attorney to possibly represent him in the criminal investigation into who leaked the name of a covert CIA operative last year. White House Press Secretary Scott McClellan said, "The president has had discussions with a private attorney recently, in the event is he sought by the grand jury...But there is no indication that President Bush is the target of the leak investigation." McClellan noted that while Mr. Bush has recently spoken to Washington Attorney Jim Sharp, he has not yet retained him. The leak first appeared in print last July, that anonymous senior administration officials had exposed the identity of CIA operative Valerie Plame. Plame's husband, former Ambassador Joe Wilson, had publicly accused the president of using bogus intelligence to make the case for invading Iraq and Wilson suspected the White House was seeking revenge.
Wilson had been hired by the CIA to investigate reports that Iraq had sought uranium from Africa. Mr. Bush used that information in his 2003 State of the Union speech as part of his case to go to war.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein recently sought significant quantities of uranium from Africa.
MALVEAUX: Since January, a federal grand jury has been hearing testimony from administration and government officials to try to find who leaked Plames' identity, a federal crime. It has combed through thousands of pages of documents turned over by the White House and called witnesses, but returned no indictments.
McClellan said, "The president has always encouraged everyone in the White House to cooperate with the investigation, and that would mean him, too."
(END VIDEOTAPE) COSTELLO: The White House has previously said President Bush does not know who leaked Plames' identity to syndicated columnist Robert Novak.
That report, by the way, by Suzanne Malveaux.
As all of this is playing out, the president is heading out on a trip to Europe. He leaves this morning for Rome. On Friday, he'll meet at the Vatican with Pope John Paul II and from there it's on to Paris. Throughout his trip, he'll be meeting with key allies to talk about the future of Iraq. And on Sunday, he'll be in Normandy to help commemorate the 60th anniversary of D-Day.
Those two propane gas delivery trucks have been found near Laredo, Texas, and both were still fully loaded. The trucks were stolen over the weekend in San Antonio, about 150 miles away. There had been fears the gas could be used in a terror attack.
In stories across America this Thursday, Nicholas Wiley, a sex offender released from prison in January, has been charged with murdering two women in Syracuse, New York. One victim was found in the building where Wiley lives, the other in a dumpster outside the building. Syracuse police say Wiley has indicated there are other victims.
Another sick cruise ship -- 348 passengers and crew members are recovering this morning in Canada from a virus they picked up during a cruise to Alaska. The virus can cause diarrhea and vomiting for 24 to 48 hours.
More testimony scheduled today in the Scott Peterson murder trial. In his opening statement, defense lawyer Mark Geragos said Peterson could not have killed his pregnant wife because their baby was born alive.
CNN correspondent Ted Rowlands is covering the trial in Redwood City, California.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Mark Geragos told the jury that Scott Peterson was a cheating husband, but was "stone cold innocent." Geragos used his two and a half hour long opening statement to respond to prosecution evidence painting Peterson as a murderer. Geragos showed autopsy photos of Laci and the baby, saying, "The evidence will show the child was alive past December 23."
Prosecutors said that tape around the baby's neck had no significance, but Geragos claimed it proves the baby had been born and somebody else handled it.
AMBER FREY: He was unmarried.
ROWLANDS: On Mistress Amber Frey, Geragos said, yes, he was a cheating husband, but Peterson was simply keeping her at bay with his dozens of emotional phone calls which police recorded. Using a map of the Petersons' neighborhood, Geragos said he'll prove at least three witnesses saw Laci Peterson walking the family dog the morning she was reported missing. And another witness, he says, will come forward saying that he saw Laci Peterson being pulled into a van by two people.
At one point, Geragos slammed on a stack of forensic reports, saying investigators searched and tested every inch of Peterson's home and business but, in his words as the reports hit the table, "they found zip, nothing."
As for Peterson's altered appearance when he was arrested, Geragos said it was to hide from the relentlessness media.
JACKIE PETERSON, DEFENDANT'S MOTHER: I'm a fan.
ROWLANDS: After Geragos' opening statements, Scott Peterson's mother expressed her gratitude for what she says was a true depiction of the facts.
PETERSON: We knew the truth. It was nice to hear it publicly.
(END VIDEOTAPE)
COSTELLO: The first witness, by the way, was Margarita Nava, the Petersons' housekeeper. Nava testified she cleaned the house the day before Laci Peterson disappeared. We'll keep you posted.
Price relief at the gas pump could be just an OPEC meeting away. The oil ministers are sitting down right now to talk about production increases that could make the price go down.
CNN's Brent Sadler is covering that meeting in Beirut -- and, Brent, it looks like the oil ministers will agree to an increase in oil production.
But by how much and will it make a difference?
BRENT SADLER, CNN CORRESPONDENT: Good morning, Carol.
At this stage, as you say, the oil ministers from the 11 member nations of the OPEC cartel are sending out pretty strong signals, led by the Saudis, that they will increase oil production about a million barrels per day in real terms.
What does that mean at the gas pumps? Well, probably not very much. Certainly not in the short-term, because even if they do agree, as expected, to increase oil in the market, that takes weeks, perhaps as much as two months, for that to filter through to the gas stations. So really there's not going to be much difference in what you see, maybe a few cents shaved off here and there. But significant price reductions at the pumps, no. Reductions, slight reductions, probably. Long lasting? Probably not.
Still very, very volatile here. And don't forget that the OPEC members who were met earlier, yesterday, by the Lebanese president, Emile Lahoud, really don't control the oil market globally. They produce just over a third of the world's oil production. Other nations, of course, contribute to the world pot of oil.
OPEC tries to level out, if you like, the prices, and that clearly hasn't been working. Record highs on the oil markets. U.S. prices, the national average averaging out to $2.50 a gallon. Bad news for the motorists in the vacation period, a lot of people wanting to travel long distances using more fuel. It's still going to cost you more dollars in your wallet, certainly for the foreseeable future -- back to you, Carol.
COSTELLO: All right, Brent Sadler live in Beirut this morning.
OPEC stands for the Organization of Petroleum Exporting Countries. There are 11 member countries. They produce nearly 41 percent of the world's oil. OPEC was formed in 1960 in Baghdad and usually meets twice a year.
Breaking the terror chain -- a new crackdown on Saudi charities. Have they been channeling money to terrorists?
In Iraq, a shift in the fighting from Najaf to the equally tense town of Kufa. Guy Raz will join us live with the latest from that battleground.
And it's the eve of the 15th anniversary of the Tienanmen Square massacre. We'll take you live to Beijing to see how things have changed since the world watched that bloody crackdown.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:14 Eastern.
Here's what's all new this morning.
U.S. troops backed by tanks killed 30 insurgents who were firing mortars at a forward operating base. Four Americans were wounded.
This morning, malfunctioning air traffic control computers grounded all flights from Britain for about 45 minutes. They're up and running again, but long delays persist.
In money news, several U.S. airlines are in financial trouble again and a House committee holds hearings today on airline finances. Among the witnesses, CEOs of Continental, Northwest, AirTran, America West, Frontier and United.
In sports, Kurt Warner's agent has been talking to the New York Giants, but no announcement yet. Warner is the quarterback who led the Rams to the Super Bowl twice. But St. Louis released him on Tuesday.
In culture, it may be the first of its kind -- an ad by the Philadelphia Tourism Agency encouraging gay people to visit the city. The closing line? "Get your history straight and your night life gay" -- Chad.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
On Wall Street, blue chip stocks rally a bit, as OPEC appears ready to boost oil production.
Let's see how that's affecting stocks overseas.
For that we head live to London and Todd Benjamin.
So, what about those oil prices?
TODD BENJAMIN, CNN CORRESPONDENT: Well, the oil price this morning, Carol, right trading, futures trading on New York oil is at $40.55, or back above $40 a barrel, up $0.59. Just a little nervousness ahead of any decision by OPEC. And, of course, on the previous day, we had a huge drop in the price of oil. So the oil market has been very volatile over the last 48 hours.
The FTSE right now, on that higher oil price, is off about a half percent.
The CAC in Paris is off even more, about three quarters of one percent.
The DAX is off less than half of one percent.
As Brent Sadler reported to you live from Beirut just a few moments ago, he made a very key point, which is even if they have a big increase in production, it's not going to mean immediate relief for drivers in the U.S. at the gasoline pump, because it takes a lot of time to get that oil from the ground to the petrol station.
Also, you have a big war premium, you know, a terrorism premium. And, you know, that's adding about $9 to a barrel of oil.
So still a lot of uncertainty even if they do go ahead and have a very big increase.
In terms of what the U.S. market is going to be focusing on today besides OPEC, you have the jobless claims numbers. Those are very important. About 335,000 new claims are expected for the latest week. And, of course, that's ahead of the biggest report of them all, the granddaddy of them all, the employment report tomorrow. And big numbers expected -- back to you, Carol.
COSTELLO: You know, Todd, who is making out from the high price of oil? Oil companies. BENJAMIN: Absolutely.
COSTELLO: Look at the Fortune 500 list. Exxon is number two. BENJAMIN: Absolutely. But in...
COSTELLO: Why aren't they giving us a break? BENJAMIN: Well, you know, here's the interesting thing, at least here in Britain, all right? You know, gasoline here is extremely expensive, about more than $6 a gallon. But if you look at the actual profit margin for the oil company, it's very, very tiny, about one and a half pence per liter, which is quite small. Seventy-five percent of what you're paying here for gasoline is tax.
So you guys still are much better off, despite those sky high prices.
COSTELLO: And taxes really are the reason in some states where consumers are paying more for gas.
Todd Benjamin, thank you. BENJAMIN: Absolutely.
COSTELLO: Live from London this morning.
Where do terrorists get the money to launch their deadly attacks? All too often the money gets to them through seemingly innocent charities. Saudi Arabia has now dissolved charitable organizations that do business overseas and has created a commission to regulate donations.
Here's more from CNN justice correspondent Kelli Arena.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT (voice-over): The weekend attacks in Khobar are a painful reminder Saudi Arabia has a very real stake in the war on terror.
ADEL AL-JUBEIR, SAUDI FOREIGN POLICY ADVISER: The actions of al Qaeda that we see in the kingdom have grown more desperate. They have gone from targeting hard targets and high value targets to targeting the innocent. But as they grow more desperate, our resolve grows stronger.
ARENA: U.S. officials say that resolve and a new level of cooperation actually date back to May of last year, when terrorists bombed Riyadh. The latest move on the terror financing front bears witness.
JUAN ZARATE, DEPUTY ASSISTANT TREASURY SECRETARY: Once again, the United States and Saudi Arabia have joined forces to identify and choke off additional channels of terrorist financing.
ARENA: Officials say Saudi Arabia's willingness to move against its biggest charities, such as Al Haramain, is significant. So, too, is the investigation into Al Haramain's former head, Aqil Al-Aqil. Experts say the outcome could be critical.
MATT LEVITT, FORMER FBI ANALYST: Perhaps the key, the most critical issue that has not yet happened in Saudi Arabia, is that no single member of the Saudi elite has been held accountable for their actions to date, not a single individual.
ARENA: What the Saudis have done, according to the royal embassy, is arrest more than 600 individuals in the wake of September 11, dismantle a number of al Qaeda cells and seize large quantities of arms caches. While applauding those actions, some say what the Saudis really need to do is move away from what they call a culture of intolerance and hatred.
SEN. SUSAN COLLINS (R), MAINE: Until the Saudis commit to changing their schools, their curriculum, their culture, they are still going to be a breeding ground for terrorists like Osama bin Laden.
ARENA (on camera): The Saudis say they are working with educators and imams to make sure there is no place for incitement or intolerance, and to bring a message of peace.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Retooling the FBI after 9/11 comes full circle today on Capitol Hill. FBI Director Robert Mueller is one of many people set to testify about the agency's transformation since the September 11 attacks. That will be the focus of a House Appropriations Subcommittee this afternoon.
The ayes have it. The AEIOUs, that is. Amid some stiff spelling competition, the best of the best take a crack at becoming queen or king bee.
And the 25-foot tall 400-pound problem has a Rhode Island neighborhood going ape. We'll tell you about all this monkey business straight ahead.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Laburnum (ph).
UNIDENTIFIED CHILD: Laburnum. May I please have the definition?
(END VIDEO CLIP)
COSTELLO: I think somebody needs to lower her microphone, don't you? The poor gal.
MYERS: She can't even put an eye out.
COSTELLO: I mean isn't the pressure enough? One mistake and you're out. Forty-six kids have now advanced to today's finals of the National Spelling Bee. Of course, that's taking place in Washington, D.C. They narrowed the field from some 200 down to 46 by day's end yesterday.
MYERS: And you know what? They're all champions because I can't even pronounce them, let alone spell them, some of these words.
COSTELLO: I know. Let's take a look at some of the words that were presented to the children yesterday.
MYERS: Yes, here you go.
COSTELLO: And you're right, I can't pronounce -- look at that.
MYERS: And that -- can you give me the definition? What? Huh?
COSTELLO: Huh?
MYERS: Like that's going to help.
COSTELLO: What?
MYERS: Flaxotaxi (ph).
COSTELLO: You know, the funny thing, I was...
MYERS: (UNINTELLIGIBLE).
COSTELLO: I was talking with one of our producers yesterday about how your spelling skills erode with age. I was a great speller back in grade school. I can't spell nearly as well.
MYERS: That's because the words were smaller in grade school. See Jane run. You can get those. But when you get filotaxi (ph), you know...
COSTELLO: Some of those kids are really young, though.
MYERS: Ziphoid (ph), dequas (ph), which...
COSTELLO: I admire them.
MYERS: I suppose it's French.
COSTELLO: Of course, we'll keep you posted. And I guess they win, what, $17,000 in cash and other prizes, including a $12,000 -- let's see, what does this say? They win a top package of $17,000 in cash and other prizes, including $12,000, and an engraved cup from the Bee itself. A spelling bee...
MYERS: We could give them a DAYBREAK cup, too.
COSTELLO: I'm sure they'd love that.
MYERS: I'm sure they would. They're all champions already because they've already won so many tournaments to get to where they are.
COSTELLO: That's right.
MYERS: So congratulations.
COSTELLO: Congratulations.
MYERS: Yes, you bet. COSTELLO: It's time for our DAYBREAK Eye-Openers now.
Uh-oh, the weekend's barbecue is canceled. A 180-foot crane called in to remove some trees from this house fell over, slicing through the home. Have you seen this, Chad?
MYERS: Yes.
COSTELLO: This is in Georgia. The homeowner...
MYERS: This isn't that far from my house.
COSTELLO: Look at that. It sliced the house right in half.
MYERS: I know.
COSTELLO: The woman was eating dinner when it fell. She'd just gotten up and when she came back there was a huge crane on the chair she was sitting in. Unbelievable.
In Cranston, Rhode Island, city officials say this gorilla has got to go.
MYERS: Oh.
COSTELLO: A homeowner put up this inflatable gorilla in April and then put signs on it to advertise his flea market. But the city said nope, you cannot do that, because your residential property is not zoned (COMMERCIAL BREAK). So the guy took down the sign, but, as you can see, he kept the gorilla.
Not good enough, says the city, which is now threatening a $100 a day fine, to the delight of all of his neighbors.
MYERS: Yes.
COSTELLO: Speaking of civil rights, is nothing sacred? The New Jersey director of civil rights has ruled that ladies night at a Cherry Hill bar and restaurant is against the law. The decision comes from a complaint filed six years ago by a man. The governor calls the decision bureaucratic nonsense. So, will ladies in New Jersey no longer be able to get cheap drinks because of their gender? We will let you know.
MYERS: Don't we have other things to worry about?
COSTELLO: Hey, it takes your mind off the more important things.
Here's what's all new in the next half hour of DAYBREAK.
The new Iraqi government is looking for a few good men to serve in its army, but you might be surprised to learn who the new recruits are.
Plus, the U.S. military goes on a mission targeting Iraqi insurgents in Kufa. We'll get the latest for you in a live report. This is DAYBREAK for Thursday.
(COMMERCIAL BREAK)
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Aired June 3, 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: Ahmad Chalabi -- is he a U.S. supporter, a spy or a scapegoat? There are new developments overnight to tell you about.
It is Thursday, June 3.
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.
Military action this morning in the Iraqi city of Kufa. U.S. troops backed by tanks kill 30 insurgents who were firing mortars at a forward operating base. Four Americans are wounded.
"Stone cold innocent," that's how Scott Peterson's attorney describes his client. Opening statements in the murder trial are over and the prosecution has called its first witness.
In money news, as the OPEC meeting gets under way in Beirut, crude oil prices are on a roller coaster ride. The price is down to $39.96 a barrel. That's actually down more than $2 from Tuesday's record high. Just the day before, the price zoomed up more than two bucks.
In sports, Smarty Jones is the odds on favorite to win Saturday's Belmont Stakes and the first Triple Crown in 26 years. Odds makers make the undefeated horse the 2-5 favorite in the race.
In culture, former President Bill Clinton is the featured speaker tonight at the publishing industry's annual convention in Chicago. His memoir, "My Life," will be published on June 22 -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: New developments overnight in the controversy over Ahmad Chalabi. The "New York Times" reports polygraph testing going on right now at the Pentagon -- or, actually, it'll probably go on later this morning. Federal investigators are trying to find out who might have leaked classified intelligence to Chalabi. He's the former friend of the Bush administration who has recently fallen out of favor. Anonymous government officials have said Chalabi told Iran that the U.S. had cracked codes used by Iranian intelligence.
Chalabi calls the charge "stupid and false." His attorneys, in a letter we just received here at CNN, goes even farther. It says, and I quote, "Dr. Chalabi denies all charges which have been anonymously leaked to the press. Dr. Chalabi would never endanger the national security of the United States." And the letter continues, "Dr. Chalabi is willing and ready to come to Washington, D.C. to be interviewed fully by law enforcement agents on the subject and to answer all questions on the subject fully and without reservation."
One possible hitch -- legal experts say Chalabi could be prosecuted under U.S. law and could actually be arrested if he returns to the United States. He's in Iraq now.
In the meantime, there is another leak investigation going on in Washington. And in this one President Bush may be the one answering the questions.
CNN White House correspondent Suzanne Malveaux tells us why.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): The White House confirms President Bush has consulted a private attorney to possibly represent him in the criminal investigation into who leaked the name of a covert CIA operative last year. White House Press Secretary Scott McClellan said, "The president has had discussions with a private attorney recently, in the event is he sought by the grand jury...But there is no indication that President Bush is the target of the leak investigation." McClellan noted that while Mr. Bush has recently spoken to Washington Attorney Jim Sharp, he has not yet retained him. The leak first appeared in print last July, that anonymous senior administration officials had exposed the identity of CIA operative Valerie Plame. Plame's husband, former Ambassador Joe Wilson, had publicly accused the president of using bogus intelligence to make the case for invading Iraq and Wilson suspected the White House was seeking revenge.
Wilson had been hired by the CIA to investigate reports that Iraq had sought uranium from Africa. Mr. Bush used that information in his 2003 State of the Union speech as part of his case to go to war.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein recently sought significant quantities of uranium from Africa.
MALVEAUX: Since January, a federal grand jury has been hearing testimony from administration and government officials to try to find who leaked Plames' identity, a federal crime. It has combed through thousands of pages of documents turned over by the White House and called witnesses, but returned no indictments.
McClellan said, "The president has always encouraged everyone in the White House to cooperate with the investigation, and that would mean him, too."
(END VIDEOTAPE) COSTELLO: The White House has previously said President Bush does not know who leaked Plames' identity to syndicated columnist Robert Novak.
That report, by the way, by Suzanne Malveaux.
As all of this is playing out, the president is heading out on a trip to Europe. He leaves this morning for Rome. On Friday, he'll meet at the Vatican with Pope John Paul II and from there it's on to Paris. Throughout his trip, he'll be meeting with key allies to talk about the future of Iraq. And on Sunday, he'll be in Normandy to help commemorate the 60th anniversary of D-Day.
Those two propane gas delivery trucks have been found near Laredo, Texas, and both were still fully loaded. The trucks were stolen over the weekend in San Antonio, about 150 miles away. There had been fears the gas could be used in a terror attack.
In stories across America this Thursday, Nicholas Wiley, a sex offender released from prison in January, has been charged with murdering two women in Syracuse, New York. One victim was found in the building where Wiley lives, the other in a dumpster outside the building. Syracuse police say Wiley has indicated there are other victims.
Another sick cruise ship -- 348 passengers and crew members are recovering this morning in Canada from a virus they picked up during a cruise to Alaska. The virus can cause diarrhea and vomiting for 24 to 48 hours.
More testimony scheduled today in the Scott Peterson murder trial. In his opening statement, defense lawyer Mark Geragos said Peterson could not have killed his pregnant wife because their baby was born alive.
CNN correspondent Ted Rowlands is covering the trial in Redwood City, California.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Mark Geragos told the jury that Scott Peterson was a cheating husband, but was "stone cold innocent." Geragos used his two and a half hour long opening statement to respond to prosecution evidence painting Peterson as a murderer. Geragos showed autopsy photos of Laci and the baby, saying, "The evidence will show the child was alive past December 23."
Prosecutors said that tape around the baby's neck had no significance, but Geragos claimed it proves the baby had been born and somebody else handled it.
AMBER FREY: He was unmarried.
ROWLANDS: On Mistress Amber Frey, Geragos said, yes, he was a cheating husband, but Peterson was simply keeping her at bay with his dozens of emotional phone calls which police recorded. Using a map of the Petersons' neighborhood, Geragos said he'll prove at least three witnesses saw Laci Peterson walking the family dog the morning she was reported missing. And another witness, he says, will come forward saying that he saw Laci Peterson being pulled into a van by two people.
At one point, Geragos slammed on a stack of forensic reports, saying investigators searched and tested every inch of Peterson's home and business but, in his words as the reports hit the table, "they found zip, nothing."
As for Peterson's altered appearance when he was arrested, Geragos said it was to hide from the relentlessness media.
JACKIE PETERSON, DEFENDANT'S MOTHER: I'm a fan.
ROWLANDS: After Geragos' opening statements, Scott Peterson's mother expressed her gratitude for what she says was a true depiction of the facts.
PETERSON: We knew the truth. It was nice to hear it publicly.
(END VIDEOTAPE)
COSTELLO: The first witness, by the way, was Margarita Nava, the Petersons' housekeeper. Nava testified she cleaned the house the day before Laci Peterson disappeared. We'll keep you posted.
Price relief at the gas pump could be just an OPEC meeting away. The oil ministers are sitting down right now to talk about production increases that could make the price go down.
CNN's Brent Sadler is covering that meeting in Beirut -- and, Brent, it looks like the oil ministers will agree to an increase in oil production.
But by how much and will it make a difference?
BRENT SADLER, CNN CORRESPONDENT: Good morning, Carol.
At this stage, as you say, the oil ministers from the 11 member nations of the OPEC cartel are sending out pretty strong signals, led by the Saudis, that they will increase oil production about a million barrels per day in real terms.
What does that mean at the gas pumps? Well, probably not very much. Certainly not in the short-term, because even if they do agree, as expected, to increase oil in the market, that takes weeks, perhaps as much as two months, for that to filter through to the gas stations. So really there's not going to be much difference in what you see, maybe a few cents shaved off here and there. But significant price reductions at the pumps, no. Reductions, slight reductions, probably. Long lasting? Probably not.
Still very, very volatile here. And don't forget that the OPEC members who were met earlier, yesterday, by the Lebanese president, Emile Lahoud, really don't control the oil market globally. They produce just over a third of the world's oil production. Other nations, of course, contribute to the world pot of oil.
OPEC tries to level out, if you like, the prices, and that clearly hasn't been working. Record highs on the oil markets. U.S. prices, the national average averaging out to $2.50 a gallon. Bad news for the motorists in the vacation period, a lot of people wanting to travel long distances using more fuel. It's still going to cost you more dollars in your wallet, certainly for the foreseeable future -- back to you, Carol.
COSTELLO: All right, Brent Sadler live in Beirut this morning.
OPEC stands for the Organization of Petroleum Exporting Countries. There are 11 member countries. They produce nearly 41 percent of the world's oil. OPEC was formed in 1960 in Baghdad and usually meets twice a year.
Breaking the terror chain -- a new crackdown on Saudi charities. Have they been channeling money to terrorists?
In Iraq, a shift in the fighting from Najaf to the equally tense town of Kufa. Guy Raz will join us live with the latest from that battleground.
And it's the eve of the 15th anniversary of the Tienanmen Square massacre. We'll take you live to Beijing to see how things have changed since the world watched that bloody crackdown.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:14 Eastern.
Here's what's all new this morning.
U.S. troops backed by tanks killed 30 insurgents who were firing mortars at a forward operating base. Four Americans were wounded.
This morning, malfunctioning air traffic control computers grounded all flights from Britain for about 45 minutes. They're up and running again, but long delays persist.
In money news, several U.S. airlines are in financial trouble again and a House committee holds hearings today on airline finances. Among the witnesses, CEOs of Continental, Northwest, AirTran, America West, Frontier and United.
In sports, Kurt Warner's agent has been talking to the New York Giants, but no announcement yet. Warner is the quarterback who led the Rams to the Super Bowl twice. But St. Louis released him on Tuesday.
In culture, it may be the first of its kind -- an ad by the Philadelphia Tourism Agency encouraging gay people to visit the city. The closing line? "Get your history straight and your night life gay" -- Chad.
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COSTELLO: Those are the latest headlines for you this morning.
On Wall Street, blue chip stocks rally a bit, as OPEC appears ready to boost oil production.
Let's see how that's affecting stocks overseas.
For that we head live to London and Todd Benjamin.
So, what about those oil prices?
TODD BENJAMIN, CNN CORRESPONDENT: Well, the oil price this morning, Carol, right trading, futures trading on New York oil is at $40.55, or back above $40 a barrel, up $0.59. Just a little nervousness ahead of any decision by OPEC. And, of course, on the previous day, we had a huge drop in the price of oil. So the oil market has been very volatile over the last 48 hours.
The FTSE right now, on that higher oil price, is off about a half percent.
The CAC in Paris is off even more, about three quarters of one percent.
The DAX is off less than half of one percent.
As Brent Sadler reported to you live from Beirut just a few moments ago, he made a very key point, which is even if they have a big increase in production, it's not going to mean immediate relief for drivers in the U.S. at the gasoline pump, because it takes a lot of time to get that oil from the ground to the petrol station.
Also, you have a big war premium, you know, a terrorism premium. And, you know, that's adding about $9 to a barrel of oil.
So still a lot of uncertainty even if they do go ahead and have a very big increase.
In terms of what the U.S. market is going to be focusing on today besides OPEC, you have the jobless claims numbers. Those are very important. About 335,000 new claims are expected for the latest week. And, of course, that's ahead of the biggest report of them all, the granddaddy of them all, the employment report tomorrow. And big numbers expected -- back to you, Carol.
COSTELLO: You know, Todd, who is making out from the high price of oil? Oil companies. BENJAMIN: Absolutely.
COSTELLO: Look at the Fortune 500 list. Exxon is number two. BENJAMIN: Absolutely. But in...
COSTELLO: Why aren't they giving us a break? BENJAMIN: Well, you know, here's the interesting thing, at least here in Britain, all right? You know, gasoline here is extremely expensive, about more than $6 a gallon. But if you look at the actual profit margin for the oil company, it's very, very tiny, about one and a half pence per liter, which is quite small. Seventy-five percent of what you're paying here for gasoline is tax.
So you guys still are much better off, despite those sky high prices.
COSTELLO: And taxes really are the reason in some states where consumers are paying more for gas.
Todd Benjamin, thank you. BENJAMIN: Absolutely.
COSTELLO: Live from London this morning.
Where do terrorists get the money to launch their deadly attacks? All too often the money gets to them through seemingly innocent charities. Saudi Arabia has now dissolved charitable organizations that do business overseas and has created a commission to regulate donations.
Here's more from CNN justice correspondent Kelli Arena.
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KELLI ARENA, CNN CORRESPONDENT (voice-over): The weekend attacks in Khobar are a painful reminder Saudi Arabia has a very real stake in the war on terror.
ADEL AL-JUBEIR, SAUDI FOREIGN POLICY ADVISER: The actions of al Qaeda that we see in the kingdom have grown more desperate. They have gone from targeting hard targets and high value targets to targeting the innocent. But as they grow more desperate, our resolve grows stronger.
ARENA: U.S. officials say that resolve and a new level of cooperation actually date back to May of last year, when terrorists bombed Riyadh. The latest move on the terror financing front bears witness.
JUAN ZARATE, DEPUTY ASSISTANT TREASURY SECRETARY: Once again, the United States and Saudi Arabia have joined forces to identify and choke off additional channels of terrorist financing.
ARENA: Officials say Saudi Arabia's willingness to move against its biggest charities, such as Al Haramain, is significant. So, too, is the investigation into Al Haramain's former head, Aqil Al-Aqil. Experts say the outcome could be critical.
MATT LEVITT, FORMER FBI ANALYST: Perhaps the key, the most critical issue that has not yet happened in Saudi Arabia, is that no single member of the Saudi elite has been held accountable for their actions to date, not a single individual.
ARENA: What the Saudis have done, according to the royal embassy, is arrest more than 600 individuals in the wake of September 11, dismantle a number of al Qaeda cells and seize large quantities of arms caches. While applauding those actions, some say what the Saudis really need to do is move away from what they call a culture of intolerance and hatred.
SEN. SUSAN COLLINS (R), MAINE: Until the Saudis commit to changing their schools, their curriculum, their culture, they are still going to be a breeding ground for terrorists like Osama bin Laden.
ARENA (on camera): The Saudis say they are working with educators and imams to make sure there is no place for incitement or intolerance, and to bring a message of peace.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Retooling the FBI after 9/11 comes full circle today on Capitol Hill. FBI Director Robert Mueller is one of many people set to testify about the agency's transformation since the September 11 attacks. That will be the focus of a House Appropriations Subcommittee this afternoon.
The ayes have it. The AEIOUs, that is. Amid some stiff spelling competition, the best of the best take a crack at becoming queen or king bee.
And the 25-foot tall 400-pound problem has a Rhode Island neighborhood going ape. We'll tell you about all this monkey business straight ahead.
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UNIDENTIFIED MALE: Laburnum (ph).
UNIDENTIFIED CHILD: Laburnum. May I please have the definition?
(END VIDEO CLIP)
COSTELLO: I think somebody needs to lower her microphone, don't you? The poor gal.
MYERS: She can't even put an eye out.
COSTELLO: I mean isn't the pressure enough? One mistake and you're out. Forty-six kids have now advanced to today's finals of the National Spelling Bee. Of course, that's taking place in Washington, D.C. They narrowed the field from some 200 down to 46 by day's end yesterday.
MYERS: And you know what? They're all champions because I can't even pronounce them, let alone spell them, some of these words.
COSTELLO: I know. Let's take a look at some of the words that were presented to the children yesterday.
MYERS: Yes, here you go.
COSTELLO: And you're right, I can't pronounce -- look at that.
MYERS: And that -- can you give me the definition? What? Huh?
COSTELLO: Huh?
MYERS: Like that's going to help.
COSTELLO: What?
MYERS: Flaxotaxi (ph).
COSTELLO: You know, the funny thing, I was...
MYERS: (UNINTELLIGIBLE).
COSTELLO: I was talking with one of our producers yesterday about how your spelling skills erode with age. I was a great speller back in grade school. I can't spell nearly as well.
MYERS: That's because the words were smaller in grade school. See Jane run. You can get those. But when you get filotaxi (ph), you know...
COSTELLO: Some of those kids are really young, though.
MYERS: Ziphoid (ph), dequas (ph), which...
COSTELLO: I admire them.
MYERS: I suppose it's French.
COSTELLO: Of course, we'll keep you posted. And I guess they win, what, $17,000 in cash and other prizes, including a $12,000 -- let's see, what does this say? They win a top package of $17,000 in cash and other prizes, including $12,000, and an engraved cup from the Bee itself. A spelling bee...
MYERS: We could give them a DAYBREAK cup, too.
COSTELLO: I'm sure they'd love that.
MYERS: I'm sure they would. They're all champions already because they've already won so many tournaments to get to where they are.
COSTELLO: That's right.
MYERS: So congratulations.
COSTELLO: Congratulations.
MYERS: Yes, you bet. COSTELLO: It's time for our DAYBREAK Eye-Openers now.
Uh-oh, the weekend's barbecue is canceled. A 180-foot crane called in to remove some trees from this house fell over, slicing through the home. Have you seen this, Chad?
MYERS: Yes.
COSTELLO: This is in Georgia. The homeowner...
MYERS: This isn't that far from my house.
COSTELLO: Look at that. It sliced the house right in half.
MYERS: I know.
COSTELLO: The woman was eating dinner when it fell. She'd just gotten up and when she came back there was a huge crane on the chair she was sitting in. Unbelievable.
In Cranston, Rhode Island, city officials say this gorilla has got to go.
MYERS: Oh.
COSTELLO: A homeowner put up this inflatable gorilla in April and then put signs on it to advertise his flea market. But the city said nope, you cannot do that, because your residential property is not zoned (COMMERCIAL BREAK). So the guy took down the sign, but, as you can see, he kept the gorilla.
Not good enough, says the city, which is now threatening a $100 a day fine, to the delight of all of his neighbors.
MYERS: Yes.
COSTELLO: Speaking of civil rights, is nothing sacred? The New Jersey director of civil rights has ruled that ladies night at a Cherry Hill bar and restaurant is against the law. The decision comes from a complaint filed six years ago by a man. The governor calls the decision bureaucratic nonsense. So, will ladies in New Jersey no longer be able to get cheap drinks because of their gender? We will let you know.
MYERS: Don't we have other things to worry about?
COSTELLO: Hey, it takes your mind off the more important things.
Here's what's all new in the next half hour of DAYBREAK.
The new Iraqi government is looking for a few good men to serve in its army, but you might be surprised to learn who the new recruits are.
Plus, the U.S. military goes on a mission targeting Iraqi insurgents in Kufa. We'll get the latest for you in a live report. This is DAYBREAK for Thursday.
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