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CNN Live At Daybreak

Thousands Viewing Former President Reagan's Casket; Recapping Unifying, Divisive Issues at G-8 Summit

Aired June 10, 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 look at beautiful Washington this morning. Beneath the dome of the nation's Capitol, Americans at this hour pay quiet homage to the nation's 40th president.
It is Thursday, June 10th.

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.

Throughout the night, thousands filed past the coffin containing the remains of Ronald Wilson Reagan. Over the next 24 hours, more than 200,000 people are expected to pay their respects in the Capitol Rotunda.

U.S. military commanders today refused to help Iraqi police battle elements of the Mahdi militia in Najaf. Here's what a senior U.S. officer had to say about the Iraqi police chief -- "He's got to learn how to deal with it on his own." The military later resupplied Iraqi police with ammunition.

In money news, a U.S. House committee wants to block a Bermuda- based company from a $10 billion dollar security contract to track visitors to the United States. The Appropriations Committee objects because the company is not based here in the States.

In sports, Texas Tech basketball coach Bob Knight is expected to sign a three year contract extension, keeping him at the school through 2009. His current contract for 250,000 bucks a year runs through 2006.

In culture, waddle down Disneyland's main street with us. Donald Duck and his friends celebrated the bird's 70th birthday at Disneyland Paris. Donald made his debut on June 9, 1934 in the cartoon "The Wise Little Hen." And Donald looks like he's having a lot of fun -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Yes, it looks like it's pretty hot there. He's not spraying water. Maybe he's just spraying little confettis. Yes, I guess that's just little pieces of paper.

COSTELLO: Yes, I think it's confetti.

(WEATHER REPORT)

COSTELLO: Flags and flowers, prayers and praise -- when Ronald Reagan won the White House he promised a new morning in America. Now much of America is mourning his death. All night long, people have filed through the Rotunda of the U.S. Capitol, where Reagan's body still lies in state.

CNN's Elaine Quijano at the Capitol now, where many are still lining up for a chance to say a final good-bye -- good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Carol.

What a difference 24 hours makes. You'll recall yesterday around this time just about three people in line. Certainly that scene has changed, as we take a look here outside the west front of the Capitol. A lot of people have been filing through throughout the evening here. U.S. Capitol Police estimate some 150,000 will file through the Capitol Rotunda before this week is finished.

Now, inside the Rotunda itself, a solemn scene. People stopping, pausing to pay their last respects. The mood really has changed somewhat, I have to say, Carol, compared to yesterday, when folks seemed to be a little bit more light-hearted, folks who endured some long waits. The very first person in line, in fact, enjoying a 16 plus hour wait in order to get inside to view President Reagan's casket.

Now the tone more somber. Especially we noticed that yesterday, after the caisson made its way down Constitution Avenue. The crowds that had gathered along Constitution Avenue making their way over here. A more somber tone as people proceed through here today.

Now, something to note, the heat certainly was a factor. We are told by fire officials in the District that about 100 people were treated for heat related type illnesses, heat related type injuries. The heat yesterday was about 91 degrees, 92 degrees; humidity very high. In fact, Capitol police had passed out water bottles, even brought out some fans later in the day to help cool off some of the people who had been standing in those lines waiting to get inside.

Today, however, we are expecting it to be about 10 degrees cooler. That is some good news, certainly, as people make their way down here to the Capitol. As you can see behind me here, the crowds have been steady. What started off yesterday morning as sort of a slow trickle has certainly turned into a steady stream today -- Carol.

COSTELLO: You know, I'm watching the people behind you and they're moving at a pretty brisk pace. Once you get into the Capitol, how long are you allowed to stand by President Reagan's casket?

QUIJANO: Well, that is something that Capitol Police are very mindful of. They want to give people the opportunity to pay their respects, but at the same time they don't want people to pause, necessarily. Now, we have seen, of course, if you watch the live feed of people walking through, some folks will pause momentarily. But Capitol Police say that that is something that they are discouraging. They would hope that people would silently, as they put it, in the silence of their hearts, express their respect, express their tributes to President Reagan as they walk through, in order so that they can accommodate all of the people who are expected; as I said, tens of thousands of people. And they want to make sure that those folks who come later have a chance to pay their respects, as well -- Carol.

COSTELLO: Elaine Quijano live in D.C. for us this morning.

We'll get back to you later on DAYBREAK.

In the former president's childhood hometown of Dixon, Illinois, a candlelight vigil. Later this morning, a memorial service will be held at the small church where Reagan was baptized and where he taught Sunday school. A memorial also planned today at the house where he grew up.

Former President George H. W. Bush, who served as Reagan's vice president and then succeeded him in office, talked about Reagan with Larry King. Bush says he's relieved that Reagan's long battle with Alzheimer's is over.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

GEORGE W.H. BUSH, FORMER PRESIDENT OF THE UNITED STATES: The battle is over, the victory won. I mean he fought this thing and without a lot of cognizance, but I think everybody said look, it's been a long, long time; it's been a terrible burden on loyal, wonderful Nancy; but life goes on and at 93 he's got so much that -- his life meant so much to so many people that I think it -- I think it's now a celebration rather than a sadness.

(END VIDEO CLIP)

COSTELLO: Reagan's body will lie in state all day today. Tomorrow's funeral service is scheduled for 11:30 a.m. Eastern at the National Cathedral in Washington. And after the funeral, the former president will be flown back to southern California. He's scheduled to arrive at the Reagan Presidential Library at around 5:15 p.m. Pacific Time, 8:15 p.m. Eastern time. A private funeral service will start an hour later.

And we have a special report on Ronald Reagan on our Web site. You can also get a history of state funerals. It's all there. Just go to cnn.com.

G-8 leaders meeting on Sea Island, Georgia are promising a united effort to promote democracy in the Middle East. But there are obstacles in that path and disagreement over NATO's role in Iraq.

CNN's John King has more for you from Savannah.

(BEGIN VIDEOTAPE) JOHN KING, CNN CORRESPONDENT (voice-over): President to president, one with a sense of disbelief...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I really never thought I'd be sitting next to an Iraqi president of a free country a year and a half ago.

KING: It was Interim Iraqi President Ghazi Al-Yawer's international summit debut. He thanked Americans for their sacrifice, promised it will not be in vain.

GHAZI AL-YAWER, IRAQI PRESIDENT DESIGNATE: We're determined to have a free, democratic, federal Iraq; a country that is a source of stability to the Middle East.

KING: How to secure the new Iraq is a major challenge. And fresh from a diplomatic victory at the United Nations, President Bush suggested NATO might now take a more robust role.

BUSH: We will work with our NATO friends to at least continue the role that now exists and hopefully expand it somewhat.

KING: French President Jacques Chirac quickly took issue and it appeared the newfound spirit of cooperation on Iraq might last less than a day.

PRES. JACQUES CHIRAC, FRANCE (THROUGH TRANSLATOR): I do not believe that it is NATO's purpose to intervene in Iraq.

KING: Senior U.S. officials rushed to avoid a new feud. All Mr. Bush meant, they said, was perhaps a greater NATO role in training Iraqi security forces, not major new troop commitments.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: While it is true that there may be some small numbers of additional foreign forces with this or that specialized role, the real key is for the Iraqis themselves to be capable of taking on these tasks.

KING: In office just a week, the new Iraqi leader took a lead role as G-8 leaders called for democratic reforms across the Middle East. The summit's Mideast initiative urges new dialogue between Israel and the Palestinians, but it also says regional conflicts must not be an obstacle for reforms. That statement reflects the White House view that some Arab nations refuse to even consider reform until the United States pushes Israel to make peace.

RICE: Without reform in the Middle East, you're going to continue to have the ideologies of hatred coming out of that region that fueled September 11.

KING: Missing from the picture where U.S. allies Egypt and Saudi Arabia, proof the initiative remains a tough sell. By all accounts, the summit's spirit was one of cooperation.

(on camera): The White House says its Iraq war critics are now eager to help. Those critics attribute the lighter mood to a White House humbled by setbacks in Iraq and now much more open to compromise.

John King, CNN, Savannah, Georgia.

(END VIDEOTAPE)

COSTELLO: The G-8 summit is wrapping up and President Bush meets with reporters this afternoon at 4:00 Eastern, 1:00 Pacific Time. And CNN does plan live coverage.

Apparently, passing a drug test is no longer enough. More American track and field athletes may not get the chance to compete in the Summer Olympic Games.

Plus, a change in the ongoing battle for Najaf. This time, a U.S. commander just says no.

Also, the debilitating effects of Alzheimer's and the sacrifice of those who care for the afflicted.

We'll be right back.

(BEGIN VIDEO CLIP)

MARION ASNES, "MONEY" MAGAZINE: "Money" chose Jacksonville, Florida as one of its top places to retire because of all the Florida areas, it's one where you can get a great deal of bang for your buck. There are coastal towns nearby where you can still get housing at a relative bargain compared to other towns like Miami or Tampa.

Owing to its climate, Florida is a senior haven and it also has low taxes, especially no income tax and no inheritance tax.

As laid back as life may be along the coast, Jacksonville is a big city. You've got sports teams, you've got museums, you've got continuing education -- all of the attractions of a major city, while outside you can still hang out on the beach.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: And welcome back to DAYBREAK.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

It is a warm and muggy morning in Washington, but thousands still standing in line to say farewell to Ronald Reagan. The former president's body lies in state all day today in the Rotunda of the Capitol. You're looking at a live picture of that right now.

More than 20 gunmen attacked a construction site in northern Afghanistan this morning. Eleven Chinese workers were killed, four were wounded. The motive for the attack is still unclear.

In money news, Steven Heyer is quitting as president and chief operating officer of Coca-Cola. He was passed over in favor of Neville Isdell as Coke's new CEO.

In sports, three of the NHL's top defensemen, Ray Bourque, Larry Murphy and Paul Coffey have been elected to the Hockey Hall of Fame. Bourque holds the career record in goals, assists and points.

In culture, a researcher says women are more likely to have sex on days when they are most fertile, even if they're not trying to get pregnant. He attributes this to biological factors. This is just a continuation in our theme from yesterday -- Chad.

MYERS: Keep moving, Carol.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Interest in interest rates apparently extends across the Atlantic.

So let's see what's happening in the markets overseas.

We head live to London and Todd Benjamin -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

Front and center today, the Bank of England is meeting to decide whether or not to raise interest rates for the fourth time since November. Economists are divided, but the -- those in favor expecting another quarter point hike, have a slight edge on those who don't. If they don't move this month, they will move at the next meeting.

House inflation here is running at 20 percent a year and also you have record consumer debt. And the Bank of England is quite concerned on both fronts.

In terms of market action today, quite quiet here.

The FTSE is off by about a quarter percent.

The DAX in Frankfurt is up less than a quarter percent.

The CAC is a little changed.

In terms of what we can expect in the U.S., the futures market is pointing to a slightly higher open at this point, after the Dow by better than a half percent yesterday and the NASDAQ was taking it on the chin. It was off one and a half percent. There was weakness both in the chip and biotech center.

In terms of economic data today out of the U.S., the latest jobless claims numbers, the latest week expected to show about 335,000 people filing for claims for the first time. And also, more importantly here, we're going to get the latest wholesale inflation numbers; producer prices. The headline numbers expected to be up about five tenths of one percent. But if you strip out that volatile oil and food category, up only two tenths of one percent. And the reason people are going to be paying a lot of attention is because earlier this week Alan Greenspan said that the Fed was willing to be more aggressive in terms of raising interest rates if they don't get it right on inflation -- back to you.

COSTELLO: All right, Todd Benjamin live from London for us this morning.

Thank you.

Next on DAYBREAK, top runners are named in a doping scandal. We'll see what hurdles this poses for the U.S. Olympic track team.

And a controversial ad shows Condoleezza Rice and Hillary Clinton like you've never seen them before. We're going to show you the pictures. Do they step over the more -- there they are.

We'll be right back.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK.

Some runners hoping to sprint into this year's Summer Olympics are running into some trouble. A doping scandal could bar them from the Games.

As CNN's Josie Burke reports, those sprinters are jumping over hurdles to clear their names.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): Two years ago, Tim Montgomery set the world record in the 100 meters. This summer, he hopes to set another record at his third Olympics for the U.S. team. Now, a potential drug violation stands between Montgomery and Athens. The United States Anti-Doping Agency, known as USADA, has told Montgomery and three other U.S. sprinters it might ban them.

UNIDENTIFIED MALE: This lets these athletes know that their careers are in jeopardy. It lets them know that they may not be in the Athens Olympics.

BURKE: But USADA's case comes with a catch. The agency might rely solely on evidence that does not include a positive drug test. USADA's drug testing protocol gives it the right to ban athletes "when USADA has other reason to believe that a potential doping violation has occurred." USADA recently received the documents that led to indictments of four other people on federal drug charges in connection with the Bay Area Laboratory Cooperative steroid scandal in February.

UNIDENTIFIED MALE: Passing a drug test is no longer enough. We have never seen anything like this in the history of American Olympic sports.

BURKE: His lawyer contends Montgomery has never failed a drug test. In a statement, she said, "The evidence is inconclusive and internally inconsistent."

Olympian Marion Jones, Montgomery's girlfriend, has been questioned by USADA and indicated she would sue if banned. But it might not be that easy. All Olympic athletes are required to sign an agreement they will go through arbitration to settle eligibility disputes.

UNIDENTIFIED MALE: It's not only a signed letter, it's also the Amateur Sports Act, which governs Olympics. It's a federal law and it will definitely hold up in court.

BURKE: And in arbitration, a positive drug test is not required, nor is the kind of proof that's required in court. Published reports indicate USADA will use e-mails, canceled checks and calendars with code words for banned substances to link athletes to doping.

The Olympics are two months away. The Olympic Torch is on its way to Athens. A countdown of a different kind is beginning with the U.S. Olympic team -- who will be eligible to compete for the U.S. track team when the games begin?

Josie Burke, CNN.

(END VIDEOTAPE)

COSTELLO: In stories across America this Thursday, Lieutenant John McLoughlin has retired from New York's Port Authority Police 33 months after he was buried in the rubble of the World Trade Center. McLoughlin, whose legs were crushed, was the last uniformed officer to be rescued.

The Louisiana State Senate has voted to put gay marriage, a gay marriage ban on the ballot as a state constitutional amendment. Still in question is the date of the vote. The Senate wants it on September 18th, the House sponsor favors November 2nd, to coincide with the presidential election.

The mayor of St. Augustine Beach, Florida says he will fight any attempt to deport 30 Russian students who are living in apartments in his town. The Russians say they paid a company $2,500 apiece for jobs in the United States, but the company reneged on the deal.

Want to talk about "The Stepford Wives?"

MYERS: Yes, I did not see it.

COSTELLO: Well, it's not out yet. I think it starts this Friday. MYERS: No, no, no, I have not seen this ad, as well.

COSTELLO: Oh, I haven't either.

MYERS: Yes.

COSTELLO: But we have pictures of it.

MYERS: This is the controversy this morning.

COSTELLO: Take a look at this ad. That would be Hillary Clinton with a different body. There's also one of Condoleezza Rice. And she is also morphed into a Stepford wife. Get it?

MYERS: Right.

COSTELLO: And this is a promotion for the movie. Evidently both Condoleezza Rice and Hillary Clinton have seen the ad and they filed no complaints.

MYERS: Condy is not wearing much in that.

COSTELLO: But that's not even her body.

MYERS: And that would upset me if someone like pasted that -- no, wait. You do that all the time with me, don't you?

COSTELLO: Yes, we put a different body on you.

MYERS: Right.

COSTELLO: And when we really want to spike the ratings, we take off your clothes.

MYERS: Not. Yes, I have not seen "Stepford Wives." I saw the original one, I think, like on TNT, something like a Turner Classic Movie. But this should be funny. I don't know, we'll see.

COSTELLO: We'll see if any complaints file in.

MYERS: Yes.

COSTELLO: But it's already run on television stations in Kansas City. No complaints from viewers.

MYERS: Right.

COSTELLO: In fact, they kind of like it.

MYERS: Right. All right.

COSTELLO: We'll keep you posted.

MYERS: See how it goes.

COSTELLO: Here's what's all new in our next half hour. The time honored tradition of state funerals. We'll take a closer look at how these national ceremonies of loss and remembrance are created.

Plus, fighting erupts overnight in Iraq as Iraqi forces and al- Sadr militiamen go at it. We take you live to Najaf.

And the plight of the panda -- could human intervention pose ongoing threats to their survival? We take you live to Beijing for more on this pandamonium.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Mourning in America -- people by the thousands still passing past the casket of the nation's 40th president. This is a live picture from the Capitol Rotunda.

It is Thursday, June 10.

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 right now.

Throughout the night, thousands filed past the coffin containing the remains of Ronald Wilson Reagan. Over the next 24 hours, more than 200,000 people are expected to pay their respects in the Capitol Rotunda.

U.S. military commanders refuse to help Iraqi police battle elements of the Mahdi militia in Najaf today. Here's what a senior U.S. officer had to say about the Iraqi police chief -- "He's got to learn how to deal with it on his own." The U.S. military later resupplied Iraqi police with ammunition.

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 10, 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 look at beautiful Washington this morning. Beneath the dome of the nation's Capitol, Americans at this hour pay quiet homage to the nation's 40th president.
It is Thursday, June 10th.

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.

Throughout the night, thousands filed past the coffin containing the remains of Ronald Wilson Reagan. Over the next 24 hours, more than 200,000 people are expected to pay their respects in the Capitol Rotunda.

U.S. military commanders today refused to help Iraqi police battle elements of the Mahdi militia in Najaf. Here's what a senior U.S. officer had to say about the Iraqi police chief -- "He's got to learn how to deal with it on his own." The military later resupplied Iraqi police with ammunition.

In money news, a U.S. House committee wants to block a Bermuda- based company from a $10 billion dollar security contract to track visitors to the United States. The Appropriations Committee objects because the company is not based here in the States.

In sports, Texas Tech basketball coach Bob Knight is expected to sign a three year contract extension, keeping him at the school through 2009. His current contract for 250,000 bucks a year runs through 2006.

In culture, waddle down Disneyland's main street with us. Donald Duck and his friends celebrated the bird's 70th birthday at Disneyland Paris. Donald made his debut on June 9, 1934 in the cartoon "The Wise Little Hen." And Donald looks like he's having a lot of fun -- Chad.

CHAD MYERS, CNN CORRESPONDENT: Yes, it looks like it's pretty hot there. He's not spraying water. Maybe he's just spraying little confettis. Yes, I guess that's just little pieces of paper.

COSTELLO: Yes, I think it's confetti.

(WEATHER REPORT)

COSTELLO: Flags and flowers, prayers and praise -- when Ronald Reagan won the White House he promised a new morning in America. Now much of America is mourning his death. All night long, people have filed through the Rotunda of the U.S. Capitol, where Reagan's body still lies in state.

CNN's Elaine Quijano at the Capitol now, where many are still lining up for a chance to say a final good-bye -- good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning, Carol.

What a difference 24 hours makes. You'll recall yesterday around this time just about three people in line. Certainly that scene has changed, as we take a look here outside the west front of the Capitol. A lot of people have been filing through throughout the evening here. U.S. Capitol Police estimate some 150,000 will file through the Capitol Rotunda before this week is finished.

Now, inside the Rotunda itself, a solemn scene. People stopping, pausing to pay their last respects. The mood really has changed somewhat, I have to say, Carol, compared to yesterday, when folks seemed to be a little bit more light-hearted, folks who endured some long waits. The very first person in line, in fact, enjoying a 16 plus hour wait in order to get inside to view President Reagan's casket.

Now the tone more somber. Especially we noticed that yesterday, after the caisson made its way down Constitution Avenue. The crowds that had gathered along Constitution Avenue making their way over here. A more somber tone as people proceed through here today.

Now, something to note, the heat certainly was a factor. We are told by fire officials in the District that about 100 people were treated for heat related type illnesses, heat related type injuries. The heat yesterday was about 91 degrees, 92 degrees; humidity very high. In fact, Capitol police had passed out water bottles, even brought out some fans later in the day to help cool off some of the people who had been standing in those lines waiting to get inside.

Today, however, we are expecting it to be about 10 degrees cooler. That is some good news, certainly, as people make their way down here to the Capitol. As you can see behind me here, the crowds have been steady. What started off yesterday morning as sort of a slow trickle has certainly turned into a steady stream today -- Carol.

COSTELLO: You know, I'm watching the people behind you and they're moving at a pretty brisk pace. Once you get into the Capitol, how long are you allowed to stand by President Reagan's casket?

QUIJANO: Well, that is something that Capitol Police are very mindful of. They want to give people the opportunity to pay their respects, but at the same time they don't want people to pause, necessarily. Now, we have seen, of course, if you watch the live feed of people walking through, some folks will pause momentarily. But Capitol Police say that that is something that they are discouraging. They would hope that people would silently, as they put it, in the silence of their hearts, express their respect, express their tributes to President Reagan as they walk through, in order so that they can accommodate all of the people who are expected; as I said, tens of thousands of people. And they want to make sure that those folks who come later have a chance to pay their respects, as well -- Carol.

COSTELLO: Elaine Quijano live in D.C. for us this morning.

We'll get back to you later on DAYBREAK.

In the former president's childhood hometown of Dixon, Illinois, a candlelight vigil. Later this morning, a memorial service will be held at the small church where Reagan was baptized and where he taught Sunday school. A memorial also planned today at the house where he grew up.

Former President George H. W. Bush, who served as Reagan's vice president and then succeeded him in office, talked about Reagan with Larry King. Bush says he's relieved that Reagan's long battle with Alzheimer's is over.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

GEORGE W.H. BUSH, FORMER PRESIDENT OF THE UNITED STATES: The battle is over, the victory won. I mean he fought this thing and without a lot of cognizance, but I think everybody said look, it's been a long, long time; it's been a terrible burden on loyal, wonderful Nancy; but life goes on and at 93 he's got so much that -- his life meant so much to so many people that I think it -- I think it's now a celebration rather than a sadness.

(END VIDEO CLIP)

COSTELLO: Reagan's body will lie in state all day today. Tomorrow's funeral service is scheduled for 11:30 a.m. Eastern at the National Cathedral in Washington. And after the funeral, the former president will be flown back to southern California. He's scheduled to arrive at the Reagan Presidential Library at around 5:15 p.m. Pacific Time, 8:15 p.m. Eastern time. A private funeral service will start an hour later.

And we have a special report on Ronald Reagan on our Web site. You can also get a history of state funerals. It's all there. Just go to cnn.com.

G-8 leaders meeting on Sea Island, Georgia are promising a united effort to promote democracy in the Middle East. But there are obstacles in that path and disagreement over NATO's role in Iraq.

CNN's John King has more for you from Savannah.

(BEGIN VIDEOTAPE) JOHN KING, CNN CORRESPONDENT (voice-over): President to president, one with a sense of disbelief...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I really never thought I'd be sitting next to an Iraqi president of a free country a year and a half ago.

KING: It was Interim Iraqi President Ghazi Al-Yawer's international summit debut. He thanked Americans for their sacrifice, promised it will not be in vain.

GHAZI AL-YAWER, IRAQI PRESIDENT DESIGNATE: We're determined to have a free, democratic, federal Iraq; a country that is a source of stability to the Middle East.

KING: How to secure the new Iraq is a major challenge. And fresh from a diplomatic victory at the United Nations, President Bush suggested NATO might now take a more robust role.

BUSH: We will work with our NATO friends to at least continue the role that now exists and hopefully expand it somewhat.

KING: French President Jacques Chirac quickly took issue and it appeared the newfound spirit of cooperation on Iraq might last less than a day.

PRES. JACQUES CHIRAC, FRANCE (THROUGH TRANSLATOR): I do not believe that it is NATO's purpose to intervene in Iraq.

KING: Senior U.S. officials rushed to avoid a new feud. All Mr. Bush meant, they said, was perhaps a greater NATO role in training Iraqi security forces, not major new troop commitments.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: While it is true that there may be some small numbers of additional foreign forces with this or that specialized role, the real key is for the Iraqis themselves to be capable of taking on these tasks.

KING: In office just a week, the new Iraqi leader took a lead role as G-8 leaders called for democratic reforms across the Middle East. The summit's Mideast initiative urges new dialogue between Israel and the Palestinians, but it also says regional conflicts must not be an obstacle for reforms. That statement reflects the White House view that some Arab nations refuse to even consider reform until the United States pushes Israel to make peace.

RICE: Without reform in the Middle East, you're going to continue to have the ideologies of hatred coming out of that region that fueled September 11.

KING: Missing from the picture where U.S. allies Egypt and Saudi Arabia, proof the initiative remains a tough sell. By all accounts, the summit's spirit was one of cooperation.

(on camera): The White House says its Iraq war critics are now eager to help. Those critics attribute the lighter mood to a White House humbled by setbacks in Iraq and now much more open to compromise.

John King, CNN, Savannah, Georgia.

(END VIDEOTAPE)

COSTELLO: The G-8 summit is wrapping up and President Bush meets with reporters this afternoon at 4:00 Eastern, 1:00 Pacific Time. And CNN does plan live coverage.

Apparently, passing a drug test is no longer enough. More American track and field athletes may not get the chance to compete in the Summer Olympic Games.

Plus, a change in the ongoing battle for Najaf. This time, a U.S. commander just says no.

Also, the debilitating effects of Alzheimer's and the sacrifice of those who care for the afflicted.

We'll be right back.

(BEGIN VIDEO CLIP)

MARION ASNES, "MONEY" MAGAZINE: "Money" chose Jacksonville, Florida as one of its top places to retire because of all the Florida areas, it's one where you can get a great deal of bang for your buck. There are coastal towns nearby where you can still get housing at a relative bargain compared to other towns like Miami or Tampa.

Owing to its climate, Florida is a senior haven and it also has low taxes, especially no income tax and no inheritance tax.

As laid back as life may be along the coast, Jacksonville is a big city. You've got sports teams, you've got museums, you've got continuing education -- all of the attractions of a major city, while outside you can still hang out on the beach.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: And welcome back to DAYBREAK.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

It is a warm and muggy morning in Washington, but thousands still standing in line to say farewell to Ronald Reagan. The former president's body lies in state all day today in the Rotunda of the Capitol. You're looking at a live picture of that right now.

More than 20 gunmen attacked a construction site in northern Afghanistan this morning. Eleven Chinese workers were killed, four were wounded. The motive for the attack is still unclear.

In money news, Steven Heyer is quitting as president and chief operating officer of Coca-Cola. He was passed over in favor of Neville Isdell as Coke's new CEO.

In sports, three of the NHL's top defensemen, Ray Bourque, Larry Murphy and Paul Coffey have been elected to the Hockey Hall of Fame. Bourque holds the career record in goals, assists and points.

In culture, a researcher says women are more likely to have sex on days when they are most fertile, even if they're not trying to get pregnant. He attributes this to biological factors. This is just a continuation in our theme from yesterday -- Chad.

MYERS: Keep moving, Carol.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Interest in interest rates apparently extends across the Atlantic.

So let's see what's happening in the markets overseas.

We head live to London and Todd Benjamin -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

Front and center today, the Bank of England is meeting to decide whether or not to raise interest rates for the fourth time since November. Economists are divided, but the -- those in favor expecting another quarter point hike, have a slight edge on those who don't. If they don't move this month, they will move at the next meeting.

House inflation here is running at 20 percent a year and also you have record consumer debt. And the Bank of England is quite concerned on both fronts.

In terms of market action today, quite quiet here.

The FTSE is off by about a quarter percent.

The DAX in Frankfurt is up less than a quarter percent.

The CAC is a little changed.

In terms of what we can expect in the U.S., the futures market is pointing to a slightly higher open at this point, after the Dow by better than a half percent yesterday and the NASDAQ was taking it on the chin. It was off one and a half percent. There was weakness both in the chip and biotech center.

In terms of economic data today out of the U.S., the latest jobless claims numbers, the latest week expected to show about 335,000 people filing for claims for the first time. And also, more importantly here, we're going to get the latest wholesale inflation numbers; producer prices. The headline numbers expected to be up about five tenths of one percent. But if you strip out that volatile oil and food category, up only two tenths of one percent. And the reason people are going to be paying a lot of attention is because earlier this week Alan Greenspan said that the Fed was willing to be more aggressive in terms of raising interest rates if they don't get it right on inflation -- back to you.

COSTELLO: All right, Todd Benjamin live from London for us this morning.

Thank you.

Next on DAYBREAK, top runners are named in a doping scandal. We'll see what hurdles this poses for the U.S. Olympic track team.

And a controversial ad shows Condoleezza Rice and Hillary Clinton like you've never seen them before. We're going to show you the pictures. Do they step over the more -- there they are.

We'll be right back.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK.

Some runners hoping to sprint into this year's Summer Olympics are running into some trouble. A doping scandal could bar them from the Games.

As CNN's Josie Burke reports, those sprinters are jumping over hurdles to clear their names.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN CORRESPONDENT (voice-over): Two years ago, Tim Montgomery set the world record in the 100 meters. This summer, he hopes to set another record at his third Olympics for the U.S. team. Now, a potential drug violation stands between Montgomery and Athens. The United States Anti-Doping Agency, known as USADA, has told Montgomery and three other U.S. sprinters it might ban them.

UNIDENTIFIED MALE: This lets these athletes know that their careers are in jeopardy. It lets them know that they may not be in the Athens Olympics.

BURKE: But USADA's case comes with a catch. The agency might rely solely on evidence that does not include a positive drug test. USADA's drug testing protocol gives it the right to ban athletes "when USADA has other reason to believe that a potential doping violation has occurred." USADA recently received the documents that led to indictments of four other people on federal drug charges in connection with the Bay Area Laboratory Cooperative steroid scandal in February.

UNIDENTIFIED MALE: Passing a drug test is no longer enough. We have never seen anything like this in the history of American Olympic sports.

BURKE: His lawyer contends Montgomery has never failed a drug test. In a statement, she said, "The evidence is inconclusive and internally inconsistent."

Olympian Marion Jones, Montgomery's girlfriend, has been questioned by USADA and indicated she would sue if banned. But it might not be that easy. All Olympic athletes are required to sign an agreement they will go through arbitration to settle eligibility disputes.

UNIDENTIFIED MALE: It's not only a signed letter, it's also the Amateur Sports Act, which governs Olympics. It's a federal law and it will definitely hold up in court.

BURKE: And in arbitration, a positive drug test is not required, nor is the kind of proof that's required in court. Published reports indicate USADA will use e-mails, canceled checks and calendars with code words for banned substances to link athletes to doping.

The Olympics are two months away. The Olympic Torch is on its way to Athens. A countdown of a different kind is beginning with the U.S. Olympic team -- who will be eligible to compete for the U.S. track team when the games begin?

Josie Burke, CNN.

(END VIDEOTAPE)

COSTELLO: In stories across America this Thursday, Lieutenant John McLoughlin has retired from New York's Port Authority Police 33 months after he was buried in the rubble of the World Trade Center. McLoughlin, whose legs were crushed, was the last uniformed officer to be rescued.

The Louisiana State Senate has voted to put gay marriage, a gay marriage ban on the ballot as a state constitutional amendment. Still in question is the date of the vote. The Senate wants it on September 18th, the House sponsor favors November 2nd, to coincide with the presidential election.

The mayor of St. Augustine Beach, Florida says he will fight any attempt to deport 30 Russian students who are living in apartments in his town. The Russians say they paid a company $2,500 apiece for jobs in the United States, but the company reneged on the deal.

Want to talk about "The Stepford Wives?"

MYERS: Yes, I did not see it.

COSTELLO: Well, it's not out yet. I think it starts this Friday. MYERS: No, no, no, I have not seen this ad, as well.

COSTELLO: Oh, I haven't either.

MYERS: Yes.

COSTELLO: But we have pictures of it.

MYERS: This is the controversy this morning.

COSTELLO: Take a look at this ad. That would be Hillary Clinton with a different body. There's also one of Condoleezza Rice. And she is also morphed into a Stepford wife. Get it?

MYERS: Right.

COSTELLO: And this is a promotion for the movie. Evidently both Condoleezza Rice and Hillary Clinton have seen the ad and they filed no complaints.

MYERS: Condy is not wearing much in that.

COSTELLO: But that's not even her body.

MYERS: And that would upset me if someone like pasted that -- no, wait. You do that all the time with me, don't you?

COSTELLO: Yes, we put a different body on you.

MYERS: Right.

COSTELLO: And when we really want to spike the ratings, we take off your clothes.

MYERS: Not. Yes, I have not seen "Stepford Wives." I saw the original one, I think, like on TNT, something like a Turner Classic Movie. But this should be funny. I don't know, we'll see.

COSTELLO: We'll see if any complaints file in.

MYERS: Yes.

COSTELLO: But it's already run on television stations in Kansas City. No complaints from viewers.

MYERS: Right.

COSTELLO: In fact, they kind of like it.

MYERS: Right. All right.

COSTELLO: We'll keep you posted.

MYERS: See how it goes.

COSTELLO: Here's what's all new in our next half hour. The time honored tradition of state funerals. We'll take a closer look at how these national ceremonies of loss and remembrance are created.

Plus, fighting erupts overnight in Iraq as Iraqi forces and al- Sadr militiamen go at it. We take you live to Najaf.

And the plight of the panda -- could human intervention pose ongoing threats to their survival? We take you live to Beijing for more on this pandamonium.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Mourning in America -- people by the thousands still passing past the casket of the nation's 40th president. This is a live picture from the Capitol Rotunda.

It is Thursday, June 10.

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 right now.

Throughout the night, thousands filed past the coffin containing the remains of Ronald Wilson Reagan. Over the next 24 hours, more than 200,000 people are expected to pay their respects in the Capitol Rotunda.

U.S. military commanders refuse to help Iraqi police battle elements of the Mahdi militia in Najaf today. Here's what a senior U.S. officer had to say about the Iraqi police chief -- "He's got to learn how to deal with it on his own." The U.S. military later resupplied Iraqi police with ammunition.

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