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CNN Live At Daybreak

Death of Former President Ronald Reagan; Latest Violence Between Insurgents, U.S. Troops

Aired June 07, 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 week of tribute honoring the memory of former President Ronald Reagan.
It is Monday, June 7.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date right now.

Flags are at half staff across the nation as Americans and others remember the nation's 40th president. Later today, there will be a private ceremony for the Reagan family at the Presidential Library in California's Simi Valley. Public viewing begins at 3:00 p.m. Eastern. Ronald Reagan, of course, as you know, died on Saturday at the age of 93.

President Bush and the first lady are on the Georgia coast this morning, but it's no vacation. The president is hosting the G8 summit of world industrial leaders, which begins tomorrow on Sea Island.

In money news, the dollar falls to a two month low against the euro. Investors are taking profits after strong gains in the U.S. job market.

And in sports, Shaq scores 34 points, Kobe 25, the rest of the Lakers a mere 16 points. The final score in the first game of the NBA Finals, Detroit 87, the Lakers 75. Ooh, Chad, go Pistons.

In culture, Phylicia Rashad becomes the first African-American actress to win a Tony award for a dramatic leading role. She plays Lena Younger in "A Raisin In the Sun." "Avenue Q" wins the Tony for best musical.

OK, Chad, back to the Pistons. Go Pistons.

CHAD MYERS, CNN CORRESPONDENT: I guess so, yes. This is not Detroit, but there obviously are no tides really per se. There are wind tides on the Great Lakes.

But this is back out in Seattle, from our affiliate K-I-N-G, King TV. This is one of the lowest tides on record in 19 years. All the stars and planets and everything lined up about every 19 years and this weekend was one of those times. Another time coming up in July for low tide. Sometimes, though, when you're in Florida, especially the Keys, low tide doesn't smell so well. So we'll have to see how that did. Obviously now the tide's coming back up. The lowest of the low tides were Friday, Saturday and Sunday, and not only in the Puget Sound, but all across the northern hemisphere.

You may have noticed, if you were at the beach, the beach was way out there. It's like whoa, where'd the water go? Well, it's been down about -- it's about a foot lower than it was last time we had this low tide thing.

(WEATHER REPORT)

COSTELLO: As the nation grieves, mourners in California will get a chance to say good-bye in person today to former President Ronald Reagan. His body will lie in repose at the Reagan Presidential Library. It's just the beginning of a week filled with public memorials.

CNN's Bill Prasad joins us live from Washington with more -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

There are mixed emotions in Washington today -- sorrow that Ronald Reagan is gone, but relief that the suffering has finally ended for Mr. Reagan and his family.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Saddened by his death, moved by his life -- about 30 people gather across the street from the White House to light candles, wave flags and remember the 40th president.

UNIDENTIFIED MALE: He was kind of everybody's grandfather, too. You know, he had a good sense of humor and he was a good president.

PRASAD: President Bush has ordered flags lowered to half staff for 30 days. Wednesday, Ronald Reagan's body will arrive in Washington. Thursday, Mr. Reagan will lie in state in the U.S. Capitol rotunda, allowing the public a rare opportunity to directly pay its respects to a president. Condolences are pouring in from all over the world.

MIKHAIL GORBACHEV, FORMER SOVIET PRESIDENT (THROUGH TRANSLATOR): He had foresight, intuition and determination that together, we could eliminate nuclear weapons.

PRASAD: Friday will be a national day of mourning, with federal departments and agencies closed. Mr. Reagan's national funeral will be held at the National Cathedral that morning.

ROBERT DALLEK, PRESIDENTIAL HISTORIAN: It's as if the passing of royalty, the passing of an era, the passing of someone who is larger than life. PRASAD: President Bush will speak at the funeral, saying good- bye to a man whose smile brought optimism to Washington and whose foresight changed the political landscape forever. (END VIDEOTAPE)

PRASAD: Dignitaries from all over the world are expected to attend the Friday funeral service. Many of them are already in the U.S. at the World Economic Summit being held in Georgia -- Carol, back to you.

COSTELLO: I would imagine security for the funeral services will be quite intense.

Tell us more about that -- Bill.

PRASAD: Well, this is being called a national special security event. And, Carol, what that means is that the Secret Service will have the primary responsibility for coordinating security. Some of the police agencies in the D.C. area have canceled vacations and security will be especially tight at the Capitol Rotunda, where it's expected at least 100,000 people will come to pay their last respects as Mr. Reagan lies in state.

COSTELLO: All right, Bill Prasad live from Washington for us this morning.

President Bush says Ronald Reagan renewed America's confidence and restored our nation at a difficult time in American history.

In an NBC interview, President Bush praised the former president and his magnetic leadership.

(BEGIN VIDEO CLIP FROM NBC)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I remember how electrified the crowd became when Ronald Reagan just walked in the room. There was something just unbelievably charismatic about him and people loved to be in his presence. I remember the stories my dad would tell of his great sense of humor. He had a wonderful Irish sense of humor and he would keep people off guard by being humble and funny. And he'll be sorely missed. He was a great president.

(END VIDEO CLIP)

COSTELLO: President Bush has designated Friday as a national day of mourning for the 40th president. That's when Reagan's state funeral will take place.

From coast to coast, there is an outpouring of support and tributes to Ronald Reagan. Regular Americans saw the former president as one of them.

From Simi Valley California, here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): American's across the nation remembered Ronald Wilson Reagan, their 40th president.

UNIDENTIFIED MALE: I think everybody, whether they liked him or not, is kind of taken in by this moment.

BUCKLEY: In Dixon Illinois, Reagan's childhood hometown, they remember him as one of their own. And even those who didn't know the President personally, most of us, say they felt as if they did.

UNIDENTIFIED MALE: He was kind of everybody's grandfather too. You know, he had a good sense of humor, and was a good president.

BUCKLEY: That sense of humor remembered by many.

UNIDENTIFIED MALE: Some of his one-liners, and some of the things he said. The classic when he was shot in pain in the hospital, and he asks if all the doctors are Republicans. I mean that kind of quick wit, just I loved it. He was terrific.

BUCKLEY: Flowers, and notes, and jellybeans were left in tribute to the former president at the Reagan Library in Simi Valley California, and in his childhood hometown. He was remembered at the airport that bears his name in Washington D.C.

UNIDENTIFIED MALE: Fantastic president. Probably the last president I actually voted for.

BUCKLEY: There were prayers for the former president. And at BELLINI: Air Presbyterian Church, where the Reagan's continued to attend, even after the Alzheimer's diagnosis, affectionate memories.

UNIDENTIFIED FEMALE: He sat close to me, and I turned around and looked, and the hymns were going on. And he was singing every word without looking at any books or anything. And he remembered. That was still so deeply embedded.

BUCKLEY: As Americans remembered Ronald Reagan, most set aside political differences they may have had, and remembered a man who insisted that Americans had reason to be proud of America.

UNIDENTIFIED MALE: He was probably one of the greatest presidents that we've ever had. And it's very tragic.

(END VIDEOTAPE)

COSTELLO: Again, people on both East and the West Coast will be given a chance to pay last respects to the former president. Today and tomorrow, President Reagan will lie in repose at the Reagan Library in Simi Valley. The body departs for Washington on Wednesday. And upon arrival, President Reagan will be put on a horse drawn carriage and taken down Constitution Avenue to the Capitol.

Thousands are expected to walk past the casket as the president lies in state in the Capitol Rotunda. He is just the tenth president to be given that honor. On Friday, a service will be held at the National Cathedral and after that service, President Reagan will be taken back to California for burial at the Reagan Library. Be sure to tune in later this afternoon for a CNN special report: "Remembering Ronald Reagan." Judy Woodruff and Anderson Cooper look back at the president and his legacy. That comes your way at 2:00 p.m. Eastern.

Time now for some stories making news across America this Monday.

More voting questions in Florida. The state's supervisors of elections meet this week to discuss, among other things, the number of felons on the voter rolls. The supervisors say they won't remove names from the voter rolls until they find an accurate way to determine who should be purged.

In Maryland, an Amtrak passenger train was stopped and evacuated after someone saw suspicious activity on board. Two men were questioned and then released. The 233 passengers on board the train completed their journey to Washington by bus.

Jury selection set to begin in the first Enron criminal trial. The jury will decide if executives from Enron and Merrill Lynch conspired to manipulate Enron's bottom line. Four Merrill Lynch and two Enron execs allegedly took part in a sham sale of barges to make it look like Enron reached its earnings targets.

And here are some stories still ahead on DAYBREAK.

A cease-fire in Iraq's Najaf -- could it hold through the day? In two minutes, we take you live to our correspondent there.

Also, Israel's cabinet has approved a watered down version of Prime Minister Ariel Sharon's plan to withdraw from Gaza. Live to Jerusalem after the half hour.

And later, fighting cancer with new strategies that might make chemotherapy just a bad memory.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Reports of an explosion at a mosque in Kufa this morning. That's just 23 days and counting until the handover of sovereignty to the Iraqis. On Friday, a truce deal ended the fighting in Najaf and Kufa between U.S. forces and those of a radical cleric. But that explosion this morning.

Let's head live to Najaf, where our Guy Raz is live on video phone.

He has the latest for you from there -- Guy, what can you tell us?

GUY RAZ, CNN CORRESPONDENT: Carol, good morning.

We're getting initial reports now that at least one explosion set off around the Kufa mosque, just about a mile from where we are, at a U.S. military installation. And we could see smoke rising from that location a short time ago. We understand that ammunition stored inside that mosque, ammunition used by insurgents, who waged a six week battle with U.S. forces, was stored inside that mosque. Somehow the ammunition caught fire and created a chain reaction.

Now, militia members, the Shiite militia members inside that mosque are blaming U.S. forces for firing some type of a rocket at the mosque. But we can say that we have heard no such offensive attacks taking place from this location at all today.

Meanwhile, we're 72 hours into a cease-fire that has so far been going quite well. On Friday, the governor of Najaf called on U.S. forces to pull back from the twin cities of Najaf and Kufa, where so much fighting has taken place over the past six weeks. Hundreds of militia fighters have been killed and an unknown number of civilians.

Now, the Iraqi police chief has deployed 400 Iraqi police officers to those -- both those cities. We spoke with him over the weekend. He told us he's confident his police officers can finally bring stability to those cities.

Now, U.S. officials say, military officials here say that they will reevaluate the situation tonight and tomorrow decide whether to main -- to continue to maintain a low profile or not.

But according to a senior official that -- he told us if the insurgents go against this agreement, then the gloves come off -- Carol.

COSTELLO: Guy Raz reporting live from Najaf, Iraq this morning.

A classified Pentagon report last year concluded that President Bush would not be legally bound by laws prohibiting torture. The "Wall Street Journal" says the report was prompted by complaints from commanders that conventional interrogation methods at Guantanamo Bay were not effective. The general says it's not known if Mr. Bush ever saw the report.

Your news, money, weather and sports.

It is 5:16 Eastern.

Here's what's all new this morning.

President Reagan's body will lie in state Wednesday at the U.S. Capitol rotunda in Washington. Until then, people can pay their respects at the Reagan library in Simi Valley, California.

President Bush arrives in Georgia ahead of the G8 summit tomorrow on Sea Island. Gunboats, helicopters, police and National Guard troops now on patrol. Tight security is keeping thousands of G8 protesters miles away.

In money news, low rate student loans may be a thing of the past. Congress is considering a bill that would end the current three percent rate. The bill would make rates variable starting in 2006. In sports, Smarty Jones may have lost out on the Triple Crown, but he was a winner for NBC. The network posted the highest TV ratings for the Belmont stakes since 1977. And that would be the year Seattle Slew won the Triple Crown.

In culture, the third one is even more charming. "Harry Potter and the Prisoner of Azkaban" earned $92.7 million at box office over the weekend. And that tops the openings of the first two Harry Potter movies -- Chad.

MYERS: Good morning, Carol.

Hey, you know what I rented this week? "Shrek 1."

COSTELLO: Oh, it's great, isn't it?

MYERS: It is great. It doesn't seem like a child's movie, though, sometimes.

COSTELLO: That's the beauty of it.

MYERS: It is. It's great.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Time now to check the overseas markets and see how Wall Street may jump start the week.

For that, we head live to London and Paula Hancocks -- good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hi there, Carol.

Well, the European markets are doing fairly well at the moment. We're a couple of hours into the trading day. All of the big four are higher at the moment. The reason for that is a very good U.S. jobs report that came out on Friday. Not staggeringly good figures, but stronger than they were expected to be, the U.S. non-farm payrolls. So that's helping sentiment. It's allowed the Dow to jump half a percent, the NASDAQ to jump one percent on Friday.

We could be seeing a higher open for Wall Street, as well, when it starts opening in a few hours time.

So a very positive day for the main markets here in Europe; also in Asia, across-the-board, are all much higher.

Oil is something we've been focusing on for some time. It is down once again today. Light sweet crude there in the United States $38.38, you can see, down a third of one percent. That's good news pretty much for everyone involved -- for the oil producers after OPEC, the oil cartel, last Thursday said that they would increase their production so that there wouldn't be such a fear of a supply crunch. And also some figures coming out showing that U.S. inventories aren't quite as tight as previously thought.

So we're seeing these oil prices come down off their highs from last week. We saw almost $42.40 last week -- Carol, back to you.

COSTELLO: Paula Hancocks live from London.

Under a veil of secrecy, the I dos are a done deal. Did you hear? The third time is the charm for a Hollywood heavy hitter. Or is it?

We'll tell you what J-Lo and her new beau did over the weekend. That's next.

(COMMERCIAL BREAK)

COSTELLO: Should we do our DAYBREAK Eye-Openers first or should we talk about this new bible-based diet?

MYERS: Oh, yes, you want to do that one first?

COSTELLO: Sure. Let's go.

MYERS: The guys here, two guys -- they're kind of almost fighting it out.

COSTELLO: They're battling it out over the bible-based diets.

MYERS: They're trying to figure out what the diet says -- what the bible says about what you should be eating. And...

COSTELLO: "What Would Jesus Eat?" That's the name of one of the books.

MYERS: My thought would be wine and fish, right? I mean...

COSTELLO: No, I don't think wine enters the picture, Chad. I think it's nuts and berries and healthy grains and stuff like that, kind of a vegan-based diet.

MYERS: That's what they're saying.

COSTELLO: That's the most recent book out.

MYERS: That's what they're saying was in the Garden of Eden, nuts and berries and fruits and nuts and so on.

COSTELLO: That's right.

MYERS: So...

COSTELLO: There's a new book out by a guy who lives in a place called Hallelujah Acres. I guess these books are selling really well.

MYERS: But he also thinks that people lived, on the average, for 912 years during the time of the bible.

COSTELLO: They lived for 900 -- as in 912 years old?

MYERS: Old.

COSTELLO: Really?

MYERS: Yes. But they also think you should drink unpasteurized milk, which seems a little scary just a little bit of the time nowadays, right?

COSTELLO: OK. So you'll stick to the Atkins diet?

MYERS: Well, you know, but things were so different back 2,000 years ago, right? I mean the whole world was different. The pesticides were different, the herbicides and all that other kind of stuff.

COSTELLO: Well, there wasn't any of that stuff back then.

MYERS: Well, of course not. There wasn't seven billion people on the planet either.

COSTELLO: It's up to you.

Let's talk about J-Lo.

MYERS: She's married again.

COSTELLO: Because I know that it comes right after that as a great segue.

Can you believe she got married again?

MYERS: No. Not so fast.

COSTELLO: To Marc Anthony. They had a small ceremony, only 40 guests. She just didn't tell anyone. Well, actually, she told those 40 people that showed up but that was it.

MYERS: Didn't she just break up with Ben?

COSTELLO: Yes, she just broke up with Ben and he just got divorced.

MYERS: Yes.

COSTELLO: And then he had this paternity suit, which apparently the DNA didn't match and it's not his baby. But it's a mess and they're married and maybe they'll be known as Markifer or Jenifark.

MYERS: Oh, that's hard (UNINTELLIGIBLE). Careful.

COSTELLO: So, just so you know, that's three marriages for Jennifer Lopez in seven years.

MYERS: Not to despair, though. COSTELLO: Not to despair, no, because this was a bear on the beach. This was an unusual scene, to say the least, in Jacksonville, Florida, where a black bear wandered onto the back porch of a summer home before heading down the beach in search of a picnic basket. The bear was later tranquilized and taken away, possibly back to Jellystone Park.

MYERS: Awesome.

COSTELLO: More than 70 teams from around the globe gathered in Germany for the World Barbecue Championship. I can't believe you weren't there, Chad.

MYERS: I couldn't get a flight.

COSTELLO: It was a team from Switzerland that walked away with the tasty title of the ultimate barbecue battle. The Swiss got a handsome trophy and a whole bunch of wet wipes.

Here's what's all new in the next half hour of DAYBREAK.

The G8 summit takes center stage on Sea Island. But how will the community be affected by the threat of terrorism and disruptive demonstrations? We'll have a preview for you.

A watered down version of Ariel Sharon's disengagement plan is approved. But with the conditions imposed, what are its chances of being implemented? We take you live to Jerusalem for the latest on that.

And when it comes to fighting cancer, doctors are learning that it all comes down to the genes.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

MARION ASNES, "MONEY MAGAZINE": What "Money" did this year was talk to top demographers and economists and find out how the baby boomers, the next generation of retirees, would pick the places to live. And what we learned was that the places they chose in their 40s and 50s would probably be the places they retired.

Oakland is one of the top places where people are moving in their 40s and 50s, and that's why we chose it. Of all the communities around the Bay, Oakland and its environs are the ones where you can still get a little bang for your California buck.

California has a high cost of living and a high cost of real estate. But it's worth it for the lifestyle. You've got beautiful weather. You've got sailing and water sports on the Bay. Wine country is a short drive away, as is skiing. You can really do everything when you're in northern California.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: A friendly wave from the president. But will he still be smiling at the end of the G8 summit?

it is Monday, June 7.

This is DAYBREAK.

And good morning to you.

Welcome to the second half hour of DAYBREAK.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now.

Mourners gathered over the weekend at the Ronald Reagan Presidential Library in Simi, California and they will be there again today to begin filing past the former president's coffin. Friday will be a national day of mourning for Reagan, who died on Saturday at the age of 93.

An Amtrak train bound for Washington was stopped, evacuated and searched in Maryland after a report of suspicious activity by two men. Nothing threatening was found and the two men were released after questioning.

In money news, "Maxim," the magazine for men, will launch a new 24 hour radio channel on Sirius Satellite Radio this summer.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired June 7, 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 week of tribute honoring the memory of former President Ronald Reagan.
It is Monday, June 7.

This is DAYBREAK.

And good morning to you.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date right now.

Flags are at half staff across the nation as Americans and others remember the nation's 40th president. Later today, there will be a private ceremony for the Reagan family at the Presidential Library in California's Simi Valley. Public viewing begins at 3:00 p.m. Eastern. Ronald Reagan, of course, as you know, died on Saturday at the age of 93.

President Bush and the first lady are on the Georgia coast this morning, but it's no vacation. The president is hosting the G8 summit of world industrial leaders, which begins tomorrow on Sea Island.

In money news, the dollar falls to a two month low against the euro. Investors are taking profits after strong gains in the U.S. job market.

And in sports, Shaq scores 34 points, Kobe 25, the rest of the Lakers a mere 16 points. The final score in the first game of the NBA Finals, Detroit 87, the Lakers 75. Ooh, Chad, go Pistons.

In culture, Phylicia Rashad becomes the first African-American actress to win a Tony award for a dramatic leading role. She plays Lena Younger in "A Raisin In the Sun." "Avenue Q" wins the Tony for best musical.

OK, Chad, back to the Pistons. Go Pistons.

CHAD MYERS, CNN CORRESPONDENT: I guess so, yes. This is not Detroit, but there obviously are no tides really per se. There are wind tides on the Great Lakes.

But this is back out in Seattle, from our affiliate K-I-N-G, King TV. This is one of the lowest tides on record in 19 years. All the stars and planets and everything lined up about every 19 years and this weekend was one of those times. Another time coming up in July for low tide. Sometimes, though, when you're in Florida, especially the Keys, low tide doesn't smell so well. So we'll have to see how that did. Obviously now the tide's coming back up. The lowest of the low tides were Friday, Saturday and Sunday, and not only in the Puget Sound, but all across the northern hemisphere.

You may have noticed, if you were at the beach, the beach was way out there. It's like whoa, where'd the water go? Well, it's been down about -- it's about a foot lower than it was last time we had this low tide thing.

(WEATHER REPORT)

COSTELLO: As the nation grieves, mourners in California will get a chance to say good-bye in person today to former President Ronald Reagan. His body will lie in repose at the Reagan Presidential Library. It's just the beginning of a week filled with public memorials.

CNN's Bill Prasad joins us live from Washington with more -- good morning, Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

There are mixed emotions in Washington today -- sorrow that Ronald Reagan is gone, but relief that the suffering has finally ended for Mr. Reagan and his family.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Saddened by his death, moved by his life -- about 30 people gather across the street from the White House to light candles, wave flags and remember the 40th president.

UNIDENTIFIED MALE: He was kind of everybody's grandfather, too. You know, he had a good sense of humor and he was a good president.

PRASAD: President Bush has ordered flags lowered to half staff for 30 days. Wednesday, Ronald Reagan's body will arrive in Washington. Thursday, Mr. Reagan will lie in state in the U.S. Capitol rotunda, allowing the public a rare opportunity to directly pay its respects to a president. Condolences are pouring in from all over the world.

MIKHAIL GORBACHEV, FORMER SOVIET PRESIDENT (THROUGH TRANSLATOR): He had foresight, intuition and determination that together, we could eliminate nuclear weapons.

PRASAD: Friday will be a national day of mourning, with federal departments and agencies closed. Mr. Reagan's national funeral will be held at the National Cathedral that morning.

ROBERT DALLEK, PRESIDENTIAL HISTORIAN: It's as if the passing of royalty, the passing of an era, the passing of someone who is larger than life. PRASAD: President Bush will speak at the funeral, saying good- bye to a man whose smile brought optimism to Washington and whose foresight changed the political landscape forever. (END VIDEOTAPE)

PRASAD: Dignitaries from all over the world are expected to attend the Friday funeral service. Many of them are already in the U.S. at the World Economic Summit being held in Georgia -- Carol, back to you.

COSTELLO: I would imagine security for the funeral services will be quite intense.

Tell us more about that -- Bill.

PRASAD: Well, this is being called a national special security event. And, Carol, what that means is that the Secret Service will have the primary responsibility for coordinating security. Some of the police agencies in the D.C. area have canceled vacations and security will be especially tight at the Capitol Rotunda, where it's expected at least 100,000 people will come to pay their last respects as Mr. Reagan lies in state.

COSTELLO: All right, Bill Prasad live from Washington for us this morning.

President Bush says Ronald Reagan renewed America's confidence and restored our nation at a difficult time in American history.

In an NBC interview, President Bush praised the former president and his magnetic leadership.

(BEGIN VIDEO CLIP FROM NBC)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I remember how electrified the crowd became when Ronald Reagan just walked in the room. There was something just unbelievably charismatic about him and people loved to be in his presence. I remember the stories my dad would tell of his great sense of humor. He had a wonderful Irish sense of humor and he would keep people off guard by being humble and funny. And he'll be sorely missed. He was a great president.

(END VIDEO CLIP)

COSTELLO: President Bush has designated Friday as a national day of mourning for the 40th president. That's when Reagan's state funeral will take place.

From coast to coast, there is an outpouring of support and tributes to Ronald Reagan. Regular Americans saw the former president as one of them.

From Simi Valley California, here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): American's across the nation remembered Ronald Wilson Reagan, their 40th president.

UNIDENTIFIED MALE: I think everybody, whether they liked him or not, is kind of taken in by this moment.

BUCKLEY: In Dixon Illinois, Reagan's childhood hometown, they remember him as one of their own. And even those who didn't know the President personally, most of us, say they felt as if they did.

UNIDENTIFIED MALE: He was kind of everybody's grandfather too. You know, he had a good sense of humor, and was a good president.

BUCKLEY: That sense of humor remembered by many.

UNIDENTIFIED MALE: Some of his one-liners, and some of the things he said. The classic when he was shot in pain in the hospital, and he asks if all the doctors are Republicans. I mean that kind of quick wit, just I loved it. He was terrific.

BUCKLEY: Flowers, and notes, and jellybeans were left in tribute to the former president at the Reagan Library in Simi Valley California, and in his childhood hometown. He was remembered at the airport that bears his name in Washington D.C.

UNIDENTIFIED MALE: Fantastic president. Probably the last president I actually voted for.

BUCKLEY: There were prayers for the former president. And at BELLINI: Air Presbyterian Church, where the Reagan's continued to attend, even after the Alzheimer's diagnosis, affectionate memories.

UNIDENTIFIED FEMALE: He sat close to me, and I turned around and looked, and the hymns were going on. And he was singing every word without looking at any books or anything. And he remembered. That was still so deeply embedded.

BUCKLEY: As Americans remembered Ronald Reagan, most set aside political differences they may have had, and remembered a man who insisted that Americans had reason to be proud of America.

UNIDENTIFIED MALE: He was probably one of the greatest presidents that we've ever had. And it's very tragic.

(END VIDEOTAPE)

COSTELLO: Again, people on both East and the West Coast will be given a chance to pay last respects to the former president. Today and tomorrow, President Reagan will lie in repose at the Reagan Library in Simi Valley. The body departs for Washington on Wednesday. And upon arrival, President Reagan will be put on a horse drawn carriage and taken down Constitution Avenue to the Capitol.

Thousands are expected to walk past the casket as the president lies in state in the Capitol Rotunda. He is just the tenth president to be given that honor. On Friday, a service will be held at the National Cathedral and after that service, President Reagan will be taken back to California for burial at the Reagan Library. Be sure to tune in later this afternoon for a CNN special report: "Remembering Ronald Reagan." Judy Woodruff and Anderson Cooper look back at the president and his legacy. That comes your way at 2:00 p.m. Eastern.

Time now for some stories making news across America this Monday.

More voting questions in Florida. The state's supervisors of elections meet this week to discuss, among other things, the number of felons on the voter rolls. The supervisors say they won't remove names from the voter rolls until they find an accurate way to determine who should be purged.

In Maryland, an Amtrak passenger train was stopped and evacuated after someone saw suspicious activity on board. Two men were questioned and then released. The 233 passengers on board the train completed their journey to Washington by bus.

Jury selection set to begin in the first Enron criminal trial. The jury will decide if executives from Enron and Merrill Lynch conspired to manipulate Enron's bottom line. Four Merrill Lynch and two Enron execs allegedly took part in a sham sale of barges to make it look like Enron reached its earnings targets.

And here are some stories still ahead on DAYBREAK.

A cease-fire in Iraq's Najaf -- could it hold through the day? In two minutes, we take you live to our correspondent there.

Also, Israel's cabinet has approved a watered down version of Prime Minister Ariel Sharon's plan to withdraw from Gaza. Live to Jerusalem after the half hour.

And later, fighting cancer with new strategies that might make chemotherapy just a bad memory.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Reports of an explosion at a mosque in Kufa this morning. That's just 23 days and counting until the handover of sovereignty to the Iraqis. On Friday, a truce deal ended the fighting in Najaf and Kufa between U.S. forces and those of a radical cleric. But that explosion this morning.

Let's head live to Najaf, where our Guy Raz is live on video phone.

He has the latest for you from there -- Guy, what can you tell us?

GUY RAZ, CNN CORRESPONDENT: Carol, good morning.

We're getting initial reports now that at least one explosion set off around the Kufa mosque, just about a mile from where we are, at a U.S. military installation. And we could see smoke rising from that location a short time ago. We understand that ammunition stored inside that mosque, ammunition used by insurgents, who waged a six week battle with U.S. forces, was stored inside that mosque. Somehow the ammunition caught fire and created a chain reaction.

Now, militia members, the Shiite militia members inside that mosque are blaming U.S. forces for firing some type of a rocket at the mosque. But we can say that we have heard no such offensive attacks taking place from this location at all today.

Meanwhile, we're 72 hours into a cease-fire that has so far been going quite well. On Friday, the governor of Najaf called on U.S. forces to pull back from the twin cities of Najaf and Kufa, where so much fighting has taken place over the past six weeks. Hundreds of militia fighters have been killed and an unknown number of civilians.

Now, the Iraqi police chief has deployed 400 Iraqi police officers to those -- both those cities. We spoke with him over the weekend. He told us he's confident his police officers can finally bring stability to those cities.

Now, U.S. officials say, military officials here say that they will reevaluate the situation tonight and tomorrow decide whether to main -- to continue to maintain a low profile or not.

But according to a senior official that -- he told us if the insurgents go against this agreement, then the gloves come off -- Carol.

COSTELLO: Guy Raz reporting live from Najaf, Iraq this morning.

A classified Pentagon report last year concluded that President Bush would not be legally bound by laws prohibiting torture. The "Wall Street Journal" says the report was prompted by complaints from commanders that conventional interrogation methods at Guantanamo Bay were not effective. The general says it's not known if Mr. Bush ever saw the report.

Your news, money, weather and sports.

It is 5:16 Eastern.

Here's what's all new this morning.

President Reagan's body will lie in state Wednesday at the U.S. Capitol rotunda in Washington. Until then, people can pay their respects at the Reagan library in Simi Valley, California.

President Bush arrives in Georgia ahead of the G8 summit tomorrow on Sea Island. Gunboats, helicopters, police and National Guard troops now on patrol. Tight security is keeping thousands of G8 protesters miles away.

In money news, low rate student loans may be a thing of the past. Congress is considering a bill that would end the current three percent rate. The bill would make rates variable starting in 2006. In sports, Smarty Jones may have lost out on the Triple Crown, but he was a winner for NBC. The network posted the highest TV ratings for the Belmont stakes since 1977. And that would be the year Seattle Slew won the Triple Crown.

In culture, the third one is even more charming. "Harry Potter and the Prisoner of Azkaban" earned $92.7 million at box office over the weekend. And that tops the openings of the first two Harry Potter movies -- Chad.

MYERS: Good morning, Carol.

Hey, you know what I rented this week? "Shrek 1."

COSTELLO: Oh, it's great, isn't it?

MYERS: It is great. It doesn't seem like a child's movie, though, sometimes.

COSTELLO: That's the beauty of it.

MYERS: It is. It's great.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines.

Time now to check the overseas markets and see how Wall Street may jump start the week.

For that, we head live to London and Paula Hancocks -- good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hi there, Carol.

Well, the European markets are doing fairly well at the moment. We're a couple of hours into the trading day. All of the big four are higher at the moment. The reason for that is a very good U.S. jobs report that came out on Friday. Not staggeringly good figures, but stronger than they were expected to be, the U.S. non-farm payrolls. So that's helping sentiment. It's allowed the Dow to jump half a percent, the NASDAQ to jump one percent on Friday.

We could be seeing a higher open for Wall Street, as well, when it starts opening in a few hours time.

So a very positive day for the main markets here in Europe; also in Asia, across-the-board, are all much higher.

Oil is something we've been focusing on for some time. It is down once again today. Light sweet crude there in the United States $38.38, you can see, down a third of one percent. That's good news pretty much for everyone involved -- for the oil producers after OPEC, the oil cartel, last Thursday said that they would increase their production so that there wouldn't be such a fear of a supply crunch. And also some figures coming out showing that U.S. inventories aren't quite as tight as previously thought.

So we're seeing these oil prices come down off their highs from last week. We saw almost $42.40 last week -- Carol, back to you.

COSTELLO: Paula Hancocks live from London.

Under a veil of secrecy, the I dos are a done deal. Did you hear? The third time is the charm for a Hollywood heavy hitter. Or is it?

We'll tell you what J-Lo and her new beau did over the weekend. That's next.

(COMMERCIAL BREAK)

COSTELLO: Should we do our DAYBREAK Eye-Openers first or should we talk about this new bible-based diet?

MYERS: Oh, yes, you want to do that one first?

COSTELLO: Sure. Let's go.

MYERS: The guys here, two guys -- they're kind of almost fighting it out.

COSTELLO: They're battling it out over the bible-based diets.

MYERS: They're trying to figure out what the diet says -- what the bible says about what you should be eating. And...

COSTELLO: "What Would Jesus Eat?" That's the name of one of the books.

MYERS: My thought would be wine and fish, right? I mean...

COSTELLO: No, I don't think wine enters the picture, Chad. I think it's nuts and berries and healthy grains and stuff like that, kind of a vegan-based diet.

MYERS: That's what they're saying.

COSTELLO: That's the most recent book out.

MYERS: That's what they're saying was in the Garden of Eden, nuts and berries and fruits and nuts and so on.

COSTELLO: That's right.

MYERS: So...

COSTELLO: There's a new book out by a guy who lives in a place called Hallelujah Acres. I guess these books are selling really well.

MYERS: But he also thinks that people lived, on the average, for 912 years during the time of the bible.

COSTELLO: They lived for 900 -- as in 912 years old?

MYERS: Old.

COSTELLO: Really?

MYERS: Yes. But they also think you should drink unpasteurized milk, which seems a little scary just a little bit of the time nowadays, right?

COSTELLO: OK. So you'll stick to the Atkins diet?

MYERS: Well, you know, but things were so different back 2,000 years ago, right? I mean the whole world was different. The pesticides were different, the herbicides and all that other kind of stuff.

COSTELLO: Well, there wasn't any of that stuff back then.

MYERS: Well, of course not. There wasn't seven billion people on the planet either.

COSTELLO: It's up to you.

Let's talk about J-Lo.

MYERS: She's married again.

COSTELLO: Because I know that it comes right after that as a great segue.

Can you believe she got married again?

MYERS: No. Not so fast.

COSTELLO: To Marc Anthony. They had a small ceremony, only 40 guests. She just didn't tell anyone. Well, actually, she told those 40 people that showed up but that was it.

MYERS: Didn't she just break up with Ben?

COSTELLO: Yes, she just broke up with Ben and he just got divorced.

MYERS: Yes.

COSTELLO: And then he had this paternity suit, which apparently the DNA didn't match and it's not his baby. But it's a mess and they're married and maybe they'll be known as Markifer or Jenifark.

MYERS: Oh, that's hard (UNINTELLIGIBLE). Careful.

COSTELLO: So, just so you know, that's three marriages for Jennifer Lopez in seven years.

MYERS: Not to despair, though. COSTELLO: Not to despair, no, because this was a bear on the beach. This was an unusual scene, to say the least, in Jacksonville, Florida, where a black bear wandered onto the back porch of a summer home before heading down the beach in search of a picnic basket. The bear was later tranquilized and taken away, possibly back to Jellystone Park.

MYERS: Awesome.

COSTELLO: More than 70 teams from around the globe gathered in Germany for the World Barbecue Championship. I can't believe you weren't there, Chad.

MYERS: I couldn't get a flight.

COSTELLO: It was a team from Switzerland that walked away with the tasty title of the ultimate barbecue battle. The Swiss got a handsome trophy and a whole bunch of wet wipes.

Here's what's all new in the next half hour of DAYBREAK.

The G8 summit takes center stage on Sea Island. But how will the community be affected by the threat of terrorism and disruptive demonstrations? We'll have a preview for you.

A watered down version of Ariel Sharon's disengagement plan is approved. But with the conditions imposed, what are its chances of being implemented? We take you live to Jerusalem for the latest on that.

And when it comes to fighting cancer, doctors are learning that it all comes down to the genes.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

MARION ASNES, "MONEY MAGAZINE": What "Money" did this year was talk to top demographers and economists and find out how the baby boomers, the next generation of retirees, would pick the places to live. And what we learned was that the places they chose in their 40s and 50s would probably be the places they retired.

Oakland is one of the top places where people are moving in their 40s and 50s, and that's why we chose it. Of all the communities around the Bay, Oakland and its environs are the ones where you can still get a little bang for your California buck.

California has a high cost of living and a high cost of real estate. But it's worth it for the lifestyle. You've got beautiful weather. You've got sailing and water sports on the Bay. Wine country is a short drive away, as is skiing. You can really do everything when you're in northern California.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: A friendly wave from the president. But will he still be smiling at the end of the G8 summit?

it is Monday, June 7.

This is DAYBREAK.

And good morning to you.

Welcome to the second half hour of DAYBREAK.

From the CNN global headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now.

Mourners gathered over the weekend at the Ronald Reagan Presidential Library in Simi, California and they will be there again today to begin filing past the former president's coffin. Friday will be a national day of mourning for Reagan, who died on Saturday at the age of 93.

An Amtrak train bound for Washington was stopped, evacuated and searched in Maryland after a report of suspicious activity by two men. Nothing threatening was found and the two men were released after questioning.

In money news, "Maxim," the magazine for men, will launch a new 24 hour radio channel on Sirius Satellite Radio this summer.

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