Return to Transcripts main page

CNN Live At Daybreak

Latest Attacks by Insurgents in Iraq; Videotaped Warning by Terrorists in Saudi Arabia Who Abducted American

Aired June 16, 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: Another attack today on Iraq's oil industry. Are insurgents changing tactics?
It is Wednesday, June 16th.

This is DAYBREAK.

And good morning to you.

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

Thank you for joining us.

Let me bring you up to date right now.

Iraq's oil industry under attack again today. Saboteurs strike two important southern oil pipelines for a second day. The attacks come after the oil security chief for Iraq's northern oil company was gunned down. We'll head live to CNN's senior international correspondent Christiane Amanpour in Baghdad in 60 seconds.

The search for answers -- four hours from now the 9/11 Commission will hear FBI and CIA officials discuss intelligence gathering surrounding the 9/11 terrorist attacks. They'll also examine the government's immediate response to those attacks.

In money news, Alan Greenspan says the U.S. economy has legs. Yep, he really said it. He means the economy is recovering, so analysts think any rise in interest rates will probably be gradual.

In culture, Rock The Vote -- the drive to register young voters hits the road today. The bus tour begins in Los Angeles and stops in 50 cities. Performers include Hoobastank, Black Eyed Peas and the Dixie Chicks -- and Al Sharpton, I guess.

In sports, it was a Motor City manhandling of the Los Angeles Lakers. The Detroit Pistons dominated the Lakers 100-87, to win their first NBA title in 14 years.

And -- Chad, the celebrations in Detroit still ongoing.

CHAD MYERS, CNN CORRESPONDENT: They may be still going there in Royal Oak.

COSTELLO: Yes.

MYERS: Hey, good morning, everybody.

(WEATHER REPORT)

COSTELLO: For a second day, saboteurs hit Iraq's oil industry. The latest attack today in Basra. Is this the new tactic, to attack Iraq's oil industry instead of the people who are helping the coalition?

Let's head live to Baghdad now and our chief international correspondent, Christiane Amanpour -- good morning.

CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Carol, good morning.

And it does, indeed, seem that the insurgents and the terrorists are, in fact, choosing now different targets. Instead of U.S. troops, they're going after infrastructure targets, Iraqi targets, targets that are part of the interim Iraqi government, as well as foreigners working for the coalition and for this government.

Again, as you said, for the second day in a row, saboteurs attacked main pipelines in the southern oil fields, disrupting severely -- and according to officials here cutting off all Iraq's exports for the moment. And that is a severe blow to Iraq because that means it loses critical billions of dollars. Officials here say it could take between seven to 10 days, at the very least, to fix these attacks and fix these ruptures on the pipelines. And that, in turn, is assessed to be costing the government here something in the region of more than $1 billion in revenue over that period.

Also this morning, the security chief for the northern oil company, he was gunned down and apparently his driver was wounded. This is the fourth such attack on officials in recent days. Members of the interim government have also been assassinated.

To the west of where are, in the infamous Sunni Triangle, in the town of Ramadi, there is a video that we have received of a burning car and we are hearing initial reports that at least one Iraqi police car was attacked and another civilian vehicle. U.S. soldiers went to seal off the area after the explosion and hospital sources in that area, in the Ramadi area, indicate that at least four Iraqis were killed. They say they've received four bodies. Other as yet unconfirmed, uncorroborated eyewitnesses suggest that perhaps some foreigners were involved and they may have been among the casualties. We still have to pin that down.

Now, all of this flies in the face of the drumbeat of upbeat assessments that the Bush administration has been giving about the situation in Iraq. And the dramatic downturn in Iraqi confidence has been highlighted in a new poll that was commissioned by the U.S. and the occupation forces, but was obtained by the Associated Press. It has not been officially released. But it suggests that a full 92 percent of the Iraqi people want to see the American troops leave. More than half of the people here say that they do not feel safe in their own neighborhoods. And about two thirds of those who were polled say that they hope and they believe that there will be an improvement after the handover in just under two weeks from now -- back to you, Carol.

COSTELLO: Christiane Amanpour reporting live from Baghdad for us this morning.

Thank you.

For more on this story and a look at the countdown to the hand over of Iraqi power, go to our Web site, cnn.com.

A group linked to al Qaeda has now released a videotape of an American being held hostage in Saudi Arabia. Paul Johnson works for Lockheed Martin and has been missing since Saturday.

As CNN's Deborah Feyerick reports, the kidnappers are making some very specific demands.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): He is blindfolded. His shirt torn, revealing a prominent tattoo on his left arm. In speech that is sometimes slurred, the captive says he is missing American Paul Marshall Johnson.

UNIDENTIFIED MALE: Paul Marshall Johnson Jr. I work on Apache helicopters.

FEYERICK: The captive appears for about 25 seconds. The video is heavily edited, the kidnapper selecting only certain statements. At one point for a few seconds, the man on the tape is seen with a bandage wrapped around his neck.

Paul Johnson is the Lockheed Martin employee kidnapped in Riyadh, Saudi Arabia, Saturday. It's the same day another American, Kenneth Scroggs, was killed there.

The brunt of the four-and-a-half-minute tape shows a masked gunman. He identifies himself as Abdul-Aziz al-Muqrin, the military leader of the Saudi branch of al Qaeda. He takes credit for both the murder and the kidnapping.

The gunman demands the release of -- quote -- "all our prisoners in Saudi custody" and the withdrawal of all westerners from the Arabian peninsula. Otherwise, he says, the kidnappers will kill Johnson within 72 hours -- this Friday.

Johnson's son, sister and mother remain secluded at an undisclosed location in New Jersey. They have not publicly confirmed that the man on the tape is Johnson.

(END VIDEOTAPE)

COSTELLO: And Washington's ambassador to Riyadh says the Saudi government is doing all it can to find Paul Johnson.

We want to get the latest for you now from that region.

Joining us live on the phone from Dubai in the United Arab Emirates is CNN's Caroline Faraj -- Caroline, bring us up to date.

What is the latest on the search?

CAROLINE FARAJ, CNN CORRESPONDENT: Well, Carol, I think time is running and we still have only two days. And the Saudis and the Americans are extensing -- having a very extensive mission now, trying to find any clues, any quick information, as much as possible, in order to release the kidnapped American. Up till now, no clear clue. However, they're receiving a lot of phone calls, a lot of information from people. The Saudis are having a hot line to receive information, but still on clear clue -- Carol.

COSTELLO: Something interesting, Caroline, Crown Prince Abdullah went on television he told the people of Saudi Arabia, he says be assured that the kingdom has enough men whom you haven't seen so far, but within the coming days you will see them.

What does he mean by that?

FARAJ: Well, yes, indeed, yesterday's speech with the intellectuals was a bit different from the like weekly meeting or weekly speech on the state-run television in Saudi Arabia. This time, the crown prince was a bit tough. And he was telling them that we -- this is our responsibility, to protect the expatriates and the foreigners who are coming here to help us. We will be now showing tough deal and tough mission, which it's going to be a very tough mission and we are going to be tough with our own people.

And this is a bit difficult for the Muslim world and the tribal community, to find people, you know, from the Arab and from the same tribe, in a way hunting another member of the tribe -- Carol.

COSTELLO: So, in essence he's saying they're going to go and hunt down members of al Qaeda within Saudi Arabia? What exactly does that mean?

FARAJ: Well, this is the main target, actually, from the beginning. They've been doing this since last year and they started to feel that the al Qaeda, they're not only targeting the Westerners or the Americans in specific, they're also targeting Saudis. And in their own statements, they really hit harsh the royal family. And they call them "corrupted family."

So basically they're targeting them as royal family and ruining the country. So they know now that we have to deal with this issue because it is not at all helping us in continuing the mission. A lot of families are leaving the country, Carol. And there are a lot of reports coming in the Arab press yesterday and today saying that a lot of people started to move to United Arab Emirates and Bahrain. They've even mentioning that a lot of business, actually, has been started since the, you know, terrorist attacks in Saudi Arabia, started in Bahrain -- Carol.

COSTELLO: Caroline Faraj.

CNN's Caroline Faraj reporting live by phone from Dubai this morning.

Thank you.

The commission looking into the 9/11 attacks holds its final two hearings starting today. And more details are expected about the revelation that the attacks were planned far earlier.

CNN national security correspondent David Ensor has more for you on that.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The revelation that the 9/11 hijackers originally planned to attack in May or June of 2001 but postponed because the ring leader, Mohammed Atta, and his team were not ready came, U.S. officials say, from al Qaeda prisoners like Khalid Sheikh Mohammed.

PETER BERGEN, TERRORISM EXPERT: This was a flexible plot, and they obviously felt that they would take their time. They felt sufficiently comfortable that the plot hadn't been penetrated in any way, that they could take their time to really get it right by their lights. I mean, it's actually quite ballsy of them.

ENSOR: At past congressional hearings on 9/11, some witnesses appeared behind a screen. At Wednesday's hearings of the 9/11 commission, several CIA analysts will appear openly, but officials say they will not give their names.

Knowledgeable analysts in and out of government say there are many remaining questions for CIA and FBI witnesses. Such as, Why did Mohammed Atta fly to Portland, Maine, before flying to Boston to hijack a plane? Why did all the hijackers travel through Las Vegas? Is al Qaeda still looking for ways to attack nuclear facilities in the U.S.?

BERGEN: Is that still on the table for al Qaeda's leaders is an interesting question.

ENSOR: The hijackers concentrated in San Diego, New Jersey, Florida and northern Virginia. Was there a support network in place in those areas? And is it still there?

ENSOR: Finally, and perhaps most importantly, the commissioners still seek more information on who is to blame for the clues that were missed before 9/11, and how the next major terrorism plot can be stopped. The commission's report is expected in July.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And Thomas Kean and Lee Hamilton, co-chairs of the 9/11 Commission, will be guests on "AMERICAN MORNING." That's in the 8:00 a.m. Eastern hour. How much spam did you have to delete this morning? We'll see if there's any way the government can help save you some time reading e- mail.

And forget what your mother told you about being polite -- there is no avoiding politics or religion this election year.

And your teenager may be avoiding illegal drugs, but that doesn't mean teens are not under the influence and doing serious long-term damage.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

The 9/11 hearings are coming to an end. The independent commission holds its final hearings today and tomorrow. They're looking at the plan of attack and the nation's air defenses.

Iran is threatening to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for its lack of cooperation with U.S. inspectors.

In money news, another discount airline is coming to America. Virgin America is the brainchild of Virgin Atlantic founder Richard Branson. The low cost luxury airline could get off the ground by next year.

In culture, call it a reflex -- Duran Duran's original members are back in the studio. The originals are working on their first album together since 1993. The members first regrouped for a reunion tour last June.

In sports, Andrew Agassi will not follow-up his French Open disaster by playing at Wimbledon. The former champion has pulled out of the grand slam event due to a recurring hip injury -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

You already know about the national do-not-call list to help stop those unwanted phone calls from telemarketers, but fighting the flood of junk e-mails is going to be tougher.

As CNN's Julie Vallese reports, a commission set up by Congress to stop spam has only figured out what won't work.

(BEGIN VIDEOTAPE) JULIE VALLESE, CNN CORRESPONDENT (voice-over): More than 62 million phone numbers are on the do not call registry, but if the recommendation by the Federal Trade Commission is adopted by Congress, there won't be a registry for spam.

TIMOTHY MURIS, CHAIRMAN, FEDERAL TRADE COMMISSION: A national registry was a great solution to unwanted telemarketing calls. At this time, it's not the solution to unwanted e-mail.

VALLESE: The report says a do not spam registry would create a list of valid e-mail addresses. Spammers would probably not respect the list as off limits, and possibly even use the addresses to send more spam.

(on camera): The report by the FTC was required by Congress as part of the Can Spam Act. And while the commission has recommended against a do not e-mail registry, the ultimate decision will be up to Congress.

(voice-over): At least four bills on Capitol Hill include language to create a national registry, but one of the co-sponsors of the Can Spam Act says it's unlikely any will move forward.

REP. BOB GOODLATTE (R), VIRGINIA: We're probably not going to take up legislation that creates a do not spam list as long as we believe that is not in the interests of consumers.

VALLESE: Instead, the commission says it wants to explore technology and ways to authenticate where an e-mail originates.

MURIS: Without an effective system for authenticating the source of e-mail, any registry of individual e-mail addresses will fail.

VALLESE: With or without a registry, the FTC says consumers will get spam. For now, the best way to guard against it is to do nothing -- don't open it, don't respond to it and don't opt out of it.

Julie Vallese, CNN, Capitol Hill.

(END VIDEOTAPE)

COSTELLO: Now let's check out what's happening in the European markets.

For that we head overseas to London, to Jim Boulden.

He's checking the financial numbers for us -- good morning.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Carol.

It's funny, you mentioned Duran Duran. I saw them a few months ago here in London. I couldn't believe you mentioned them again. But I have to tell you, I'm...

COSTELLO: Were they good? BOULDEN: Well, very, very slow. I have to say that music from the '80s, compared to what we also heard that night, which was also Beyonce and The Darkness, it's so much faster, quick paced music than what I grew up with in the '80s. So I have to say I'm pretty glad the '80s are over, frankly. But, you know, if Duran Duran can do it again, good for them.

Mr. Greenspan -- you probably mentioned earlier Mr. Greenspan's comments about, hey, let's not worry about inflation right now. Inflation isn't that big of a deal. That's really helping European markets. Also in Asia, Tokyo was up two and a half percent because of what Mr. Greenspan said. The markets here all up quite nicely this morning.

You also mentioned Virgin America. EAVS out of Paris owns 80 percent of Airbus. Virgin America saying it's going to take 19 planes from Airbus. That's helping the French market.

So we're having very positive news.

Let's look at some of the words of Mr. Greenspan. This is what made people very interested. He said inflation is not a serious problem, Carol. And that's what's really helped people here to say let's not worry about inflation in the U.S., we're not going to see prices rising, we're not going to see interest rates rising as aggressively.

So, Carol, good news here this morning because of what he said yesterday in Washington -- back to you.

COSTELLO: Oh, we like the sound of that.

Jim Boulden live in London this morning.

The underdogs -- they did it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And the Detroit Pistons -- wow!

(END VIDEO CLIP)

COSTELLO: Oh, happy days are here again as the Pistons show their power on the courts.

And the Olympic Torch travels to the City of Angels. We'll show you a former Greek Olympian who's gearing up to take on that gallant task.

You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: Oh, can you believe it? Motor City madness for the Detroit Pistons. The Pistons again dominated the Los Angeles Lakers, to win their first NBA championship in 14 years. The first time the Pistons clinched the championship on their home floor in Michigan. And that fact was not lost on the thousands of fans who spilled onto the streets. Just look at that. Oh, my gosh. Police say the celebrations were relatively peaceful, though. Detroit will host a parade for the Pistons tomorrow.

MYERS: You know what's ironic about this?

COSTELLO: What?

MYERS: Is that the same guy who owns the Pistons owns the Tampa Bay Lighting. He just won the Stanley Cup and now he wins the basketball championship.

COSTELLO: He's the 81-year-old guy?

MYERS: Yes.

COSTELLO: Yes, because one of the Pistons picked him up off the -- I think it was Chauncey Billups. I don't know.

MYERS: Yes. Amazing.

COSTELLO: I don't know, but those names are going to become quite famous -- Chauncey Billups and Ben Wallace.

MYERS: Yes, and relatively, as you were saying, most of the celebrations were in good taste last night.

COSTELLO: In very good taste. They were chanting...

MYERS: Unlike the comedian that said that they were going to burn the city down. It didn't happen.

COSTELLO: Well, he was kicked off the airwaves. He was some radio D.J.

MYERS: He sure was.

COSTELLO: But this is what the crowd was chanting...

MYERS: No, he was a TV guy.

COSTELLO: Was it a TV guy?

MYERS: It was a late night comedian.

COSTELLO: Oh, I know which one it was.

MYERS: And they kicked him off Detroit TV in a big hurry.

COSTELLO: Are his initials J.K.? No.

MYERS: No.

COSTELLO: We'll figure that out.

MYERS: Yes, yes.

COSTELLO: Do you guys know? Yes? OK.

MYERS: Yes.

COSTELLO: OK, this is what they were chanting in Detroit: "Ain't no party like Detroit party because Detroit party don't stop!" They were chanting that all night long.

MYERS: Yes, but you need a little bit more hip.

COSTELLO: I can't. I don't have any more hip.

MYERS: Because that ain't how they said it.

COSTELLO: OK, you do it, Mr. Rap Star.

MYERS: No. I was doing it upstairs. That's enough of that.

COSTELLO: I wish I could have been there.

MYERS: I would not.

COSTELLO: Time for our daily update on the traveling torch. The Olympic symbol was in Mexico City, where it was carried by 93-year-old Rosario Ingelsias. Mexico City hosted the 1968 Summer Games. Inglesias is a world record holder in track for athletes over the age of 85. Ah. The torch will be in Los Angeles today. Ninety-five- year-old former Olympian Peter Clentzos will be among the torch bearers. Clentzos competed for Greece in the 1932 Games in L.A. Celebrities such as Sylvester Stallone and Tom Cruise will also get into the act.

After Los Angeles, the flame heads to St. Louis before heading here to Atlanta and that's where I'll take a turn on the torch.

MYERS: Yes.

COSTELLO: I still can't believe I'm -- I have the honor.

MYERS: You get to run.

COSTELLO: I'm very excited about that.

As we watch the torch travel across North America, DAYBREAK is taking a closer look at the upcoming Games in Athens. All week long we'll be going in depth, talking about the Games, the athletes, the security issues and the big question -- will Athens be ready in time for the Olympics? On Friday, when the torch comes to Atlanta, we'll be bringing you the last half of DAYBREAK from our Olympic home, Centennial Park. So be sure to join us on Friday.

It is time for our DAYBREAK Eye-Opener right now.

It's an old saying, but the sentiment is the same -- what goes around comes around. That's the case for 44-year-old Mitzi Nichols. Nichols won half a million dollars in the Virginia lottery this week. But she first made news a few years ago by donating a kidney to a total stranger. Among the items on her shopping list are car repairs for the kidney recipient. Wow!

Time for some animal tricks. Some barn swallows at a Minnesota Home Depot store have learned how to open the doors.

MYERS: Hmmm?

COSTELLO: Yes! They fly past the sensor that triggers the automatic doors and once inside they can feed their young, who are now living in a nest in the ceiling. And then after the feeding, it's back outside to find the next course. Apparently they haven't found the bird seed aisle.

In North Carolina, a retired New York City police officer is on dog doo patrol. Al Crocker runs his own business as a professional pooper scooper and he says business is piling up.

That was bad, wasn't it?

MYERS: It was. You didn't write it.

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

It's enough to make you sweat -- literally.

Later this hour, the summer sizzle -- it's setting records. We'll tell you if your town makes the list of sweatiest cities.

And terrorism in the courts -- some Muslim Americans are sentenced for training for holy war. Is it making a difference in the war on terror?

And abortion and politics -- two hot topics that always seem to be connected. Later this hour, how it's tearing the Catholic Church apart.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Nobody is probably happier when your pen runs out of ink or your copier runs out of paper than office supply giant Staples. The company that refills everything from paper to Post-Its recently posted a quarterly profit five times larger than the same period in 2003. Crucial to its success was a five percent increase in same store sales, which are locations open at least a year.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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 16, 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: Another attack today on Iraq's oil industry. Are insurgents changing tactics?
It is Wednesday, June 16th.

This is DAYBREAK.

And good morning to you.

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

Thank you for joining us.

Let me bring you up to date right now.

Iraq's oil industry under attack again today. Saboteurs strike two important southern oil pipelines for a second day. The attacks come after the oil security chief for Iraq's northern oil company was gunned down. We'll head live to CNN's senior international correspondent Christiane Amanpour in Baghdad in 60 seconds.

The search for answers -- four hours from now the 9/11 Commission will hear FBI and CIA officials discuss intelligence gathering surrounding the 9/11 terrorist attacks. They'll also examine the government's immediate response to those attacks.

In money news, Alan Greenspan says the U.S. economy has legs. Yep, he really said it. He means the economy is recovering, so analysts think any rise in interest rates will probably be gradual.

In culture, Rock The Vote -- the drive to register young voters hits the road today. The bus tour begins in Los Angeles and stops in 50 cities. Performers include Hoobastank, Black Eyed Peas and the Dixie Chicks -- and Al Sharpton, I guess.

In sports, it was a Motor City manhandling of the Los Angeles Lakers. The Detroit Pistons dominated the Lakers 100-87, to win their first NBA title in 14 years.

And -- Chad, the celebrations in Detroit still ongoing.

CHAD MYERS, CNN CORRESPONDENT: They may be still going there in Royal Oak.

COSTELLO: Yes.

MYERS: Hey, good morning, everybody.

(WEATHER REPORT)

COSTELLO: For a second day, saboteurs hit Iraq's oil industry. The latest attack today in Basra. Is this the new tactic, to attack Iraq's oil industry instead of the people who are helping the coalition?

Let's head live to Baghdad now and our chief international correspondent, Christiane Amanpour -- good morning.

CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Carol, good morning.

And it does, indeed, seem that the insurgents and the terrorists are, in fact, choosing now different targets. Instead of U.S. troops, they're going after infrastructure targets, Iraqi targets, targets that are part of the interim Iraqi government, as well as foreigners working for the coalition and for this government.

Again, as you said, for the second day in a row, saboteurs attacked main pipelines in the southern oil fields, disrupting severely -- and according to officials here cutting off all Iraq's exports for the moment. And that is a severe blow to Iraq because that means it loses critical billions of dollars. Officials here say it could take between seven to 10 days, at the very least, to fix these attacks and fix these ruptures on the pipelines. And that, in turn, is assessed to be costing the government here something in the region of more than $1 billion in revenue over that period.

Also this morning, the security chief for the northern oil company, he was gunned down and apparently his driver was wounded. This is the fourth such attack on officials in recent days. Members of the interim government have also been assassinated.

To the west of where are, in the infamous Sunni Triangle, in the town of Ramadi, there is a video that we have received of a burning car and we are hearing initial reports that at least one Iraqi police car was attacked and another civilian vehicle. U.S. soldiers went to seal off the area after the explosion and hospital sources in that area, in the Ramadi area, indicate that at least four Iraqis were killed. They say they've received four bodies. Other as yet unconfirmed, uncorroborated eyewitnesses suggest that perhaps some foreigners were involved and they may have been among the casualties. We still have to pin that down.

Now, all of this flies in the face of the drumbeat of upbeat assessments that the Bush administration has been giving about the situation in Iraq. And the dramatic downturn in Iraqi confidence has been highlighted in a new poll that was commissioned by the U.S. and the occupation forces, but was obtained by the Associated Press. It has not been officially released. But it suggests that a full 92 percent of the Iraqi people want to see the American troops leave. More than half of the people here say that they do not feel safe in their own neighborhoods. And about two thirds of those who were polled say that they hope and they believe that there will be an improvement after the handover in just under two weeks from now -- back to you, Carol.

COSTELLO: Christiane Amanpour reporting live from Baghdad for us this morning.

Thank you.

For more on this story and a look at the countdown to the hand over of Iraqi power, go to our Web site, cnn.com.

A group linked to al Qaeda has now released a videotape of an American being held hostage in Saudi Arabia. Paul Johnson works for Lockheed Martin and has been missing since Saturday.

As CNN's Deborah Feyerick reports, the kidnappers are making some very specific demands.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): He is blindfolded. His shirt torn, revealing a prominent tattoo on his left arm. In speech that is sometimes slurred, the captive says he is missing American Paul Marshall Johnson.

UNIDENTIFIED MALE: Paul Marshall Johnson Jr. I work on Apache helicopters.

FEYERICK: The captive appears for about 25 seconds. The video is heavily edited, the kidnapper selecting only certain statements. At one point for a few seconds, the man on the tape is seen with a bandage wrapped around his neck.

Paul Johnson is the Lockheed Martin employee kidnapped in Riyadh, Saudi Arabia, Saturday. It's the same day another American, Kenneth Scroggs, was killed there.

The brunt of the four-and-a-half-minute tape shows a masked gunman. He identifies himself as Abdul-Aziz al-Muqrin, the military leader of the Saudi branch of al Qaeda. He takes credit for both the murder and the kidnapping.

The gunman demands the release of -- quote -- "all our prisoners in Saudi custody" and the withdrawal of all westerners from the Arabian peninsula. Otherwise, he says, the kidnappers will kill Johnson within 72 hours -- this Friday.

Johnson's son, sister and mother remain secluded at an undisclosed location in New Jersey. They have not publicly confirmed that the man on the tape is Johnson.

(END VIDEOTAPE)

COSTELLO: And Washington's ambassador to Riyadh says the Saudi government is doing all it can to find Paul Johnson.

We want to get the latest for you now from that region.

Joining us live on the phone from Dubai in the United Arab Emirates is CNN's Caroline Faraj -- Caroline, bring us up to date.

What is the latest on the search?

CAROLINE FARAJ, CNN CORRESPONDENT: Well, Carol, I think time is running and we still have only two days. And the Saudis and the Americans are extensing -- having a very extensive mission now, trying to find any clues, any quick information, as much as possible, in order to release the kidnapped American. Up till now, no clear clue. However, they're receiving a lot of phone calls, a lot of information from people. The Saudis are having a hot line to receive information, but still on clear clue -- Carol.

COSTELLO: Something interesting, Caroline, Crown Prince Abdullah went on television he told the people of Saudi Arabia, he says be assured that the kingdom has enough men whom you haven't seen so far, but within the coming days you will see them.

What does he mean by that?

FARAJ: Well, yes, indeed, yesterday's speech with the intellectuals was a bit different from the like weekly meeting or weekly speech on the state-run television in Saudi Arabia. This time, the crown prince was a bit tough. And he was telling them that we -- this is our responsibility, to protect the expatriates and the foreigners who are coming here to help us. We will be now showing tough deal and tough mission, which it's going to be a very tough mission and we are going to be tough with our own people.

And this is a bit difficult for the Muslim world and the tribal community, to find people, you know, from the Arab and from the same tribe, in a way hunting another member of the tribe -- Carol.

COSTELLO: So, in essence he's saying they're going to go and hunt down members of al Qaeda within Saudi Arabia? What exactly does that mean?

FARAJ: Well, this is the main target, actually, from the beginning. They've been doing this since last year and they started to feel that the al Qaeda, they're not only targeting the Westerners or the Americans in specific, they're also targeting Saudis. And in their own statements, they really hit harsh the royal family. And they call them "corrupted family."

So basically they're targeting them as royal family and ruining the country. So they know now that we have to deal with this issue because it is not at all helping us in continuing the mission. A lot of families are leaving the country, Carol. And there are a lot of reports coming in the Arab press yesterday and today saying that a lot of people started to move to United Arab Emirates and Bahrain. They've even mentioning that a lot of business, actually, has been started since the, you know, terrorist attacks in Saudi Arabia, started in Bahrain -- Carol.

COSTELLO: Caroline Faraj.

CNN's Caroline Faraj reporting live by phone from Dubai this morning.

Thank you.

The commission looking into the 9/11 attacks holds its final two hearings starting today. And more details are expected about the revelation that the attacks were planned far earlier.

CNN national security correspondent David Ensor has more for you on that.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The revelation that the 9/11 hijackers originally planned to attack in May or June of 2001 but postponed because the ring leader, Mohammed Atta, and his team were not ready came, U.S. officials say, from al Qaeda prisoners like Khalid Sheikh Mohammed.

PETER BERGEN, TERRORISM EXPERT: This was a flexible plot, and they obviously felt that they would take their time. They felt sufficiently comfortable that the plot hadn't been penetrated in any way, that they could take their time to really get it right by their lights. I mean, it's actually quite ballsy of them.

ENSOR: At past congressional hearings on 9/11, some witnesses appeared behind a screen. At Wednesday's hearings of the 9/11 commission, several CIA analysts will appear openly, but officials say they will not give their names.

Knowledgeable analysts in and out of government say there are many remaining questions for CIA and FBI witnesses. Such as, Why did Mohammed Atta fly to Portland, Maine, before flying to Boston to hijack a plane? Why did all the hijackers travel through Las Vegas? Is al Qaeda still looking for ways to attack nuclear facilities in the U.S.?

BERGEN: Is that still on the table for al Qaeda's leaders is an interesting question.

ENSOR: The hijackers concentrated in San Diego, New Jersey, Florida and northern Virginia. Was there a support network in place in those areas? And is it still there?

ENSOR: Finally, and perhaps most importantly, the commissioners still seek more information on who is to blame for the clues that were missed before 9/11, and how the next major terrorism plot can be stopped. The commission's report is expected in July.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And Thomas Kean and Lee Hamilton, co-chairs of the 9/11 Commission, will be guests on "AMERICAN MORNING." That's in the 8:00 a.m. Eastern hour. How much spam did you have to delete this morning? We'll see if there's any way the government can help save you some time reading e- mail.

And forget what your mother told you about being polite -- there is no avoiding politics or religion this election year.

And your teenager may be avoiding illegal drugs, but that doesn't mean teens are not under the influence and doing serious long-term damage.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 5:15 Eastern.

Here's what's all new this morning.

The 9/11 hearings are coming to an end. The independent commission holds its final hearings today and tomorrow. They're looking at the plan of attack and the nation's air defenses.

Iran is threatening to revive parts of its nuclear program. Iran's president is opposed to a pending Atomic Energy Agency resolution that criticizes his country for its lack of cooperation with U.S. inspectors.

In money news, another discount airline is coming to America. Virgin America is the brainchild of Virgin Atlantic founder Richard Branson. The low cost luxury airline could get off the ground by next year.

In culture, call it a reflex -- Duran Duran's original members are back in the studio. The originals are working on their first album together since 1993. The members first regrouped for a reunion tour last June.

In sports, Andrew Agassi will not follow-up his French Open disaster by playing at Wimbledon. The former champion has pulled out of the grand slam event due to a recurring hip injury -- Chad.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

You already know about the national do-not-call list to help stop those unwanted phone calls from telemarketers, but fighting the flood of junk e-mails is going to be tougher.

As CNN's Julie Vallese reports, a commission set up by Congress to stop spam has only figured out what won't work.

(BEGIN VIDEOTAPE) JULIE VALLESE, CNN CORRESPONDENT (voice-over): More than 62 million phone numbers are on the do not call registry, but if the recommendation by the Federal Trade Commission is adopted by Congress, there won't be a registry for spam.

TIMOTHY MURIS, CHAIRMAN, FEDERAL TRADE COMMISSION: A national registry was a great solution to unwanted telemarketing calls. At this time, it's not the solution to unwanted e-mail.

VALLESE: The report says a do not spam registry would create a list of valid e-mail addresses. Spammers would probably not respect the list as off limits, and possibly even use the addresses to send more spam.

(on camera): The report by the FTC was required by Congress as part of the Can Spam Act. And while the commission has recommended against a do not e-mail registry, the ultimate decision will be up to Congress.

(voice-over): At least four bills on Capitol Hill include language to create a national registry, but one of the co-sponsors of the Can Spam Act says it's unlikely any will move forward.

REP. BOB GOODLATTE (R), VIRGINIA: We're probably not going to take up legislation that creates a do not spam list as long as we believe that is not in the interests of consumers.

VALLESE: Instead, the commission says it wants to explore technology and ways to authenticate where an e-mail originates.

MURIS: Without an effective system for authenticating the source of e-mail, any registry of individual e-mail addresses will fail.

VALLESE: With or without a registry, the FTC says consumers will get spam. For now, the best way to guard against it is to do nothing -- don't open it, don't respond to it and don't opt out of it.

Julie Vallese, CNN, Capitol Hill.

(END VIDEOTAPE)

COSTELLO: Now let's check out what's happening in the European markets.

For that we head overseas to London, to Jim Boulden.

He's checking the financial numbers for us -- good morning.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Carol.

It's funny, you mentioned Duran Duran. I saw them a few months ago here in London. I couldn't believe you mentioned them again. But I have to tell you, I'm...

COSTELLO: Were they good? BOULDEN: Well, very, very slow. I have to say that music from the '80s, compared to what we also heard that night, which was also Beyonce and The Darkness, it's so much faster, quick paced music than what I grew up with in the '80s. So I have to say I'm pretty glad the '80s are over, frankly. But, you know, if Duran Duran can do it again, good for them.

Mr. Greenspan -- you probably mentioned earlier Mr. Greenspan's comments about, hey, let's not worry about inflation right now. Inflation isn't that big of a deal. That's really helping European markets. Also in Asia, Tokyo was up two and a half percent because of what Mr. Greenspan said. The markets here all up quite nicely this morning.

You also mentioned Virgin America. EAVS out of Paris owns 80 percent of Airbus. Virgin America saying it's going to take 19 planes from Airbus. That's helping the French market.

So we're having very positive news.

Let's look at some of the words of Mr. Greenspan. This is what made people very interested. He said inflation is not a serious problem, Carol. And that's what's really helped people here to say let's not worry about inflation in the U.S., we're not going to see prices rising, we're not going to see interest rates rising as aggressively.

So, Carol, good news here this morning because of what he said yesterday in Washington -- back to you.

COSTELLO: Oh, we like the sound of that.

Jim Boulden live in London this morning.

The underdogs -- they did it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And the Detroit Pistons -- wow!

(END VIDEO CLIP)

COSTELLO: Oh, happy days are here again as the Pistons show their power on the courts.

And the Olympic Torch travels to the City of Angels. We'll show you a former Greek Olympian who's gearing up to take on that gallant task.

You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: Oh, can you believe it? Motor City madness for the Detroit Pistons. The Pistons again dominated the Los Angeles Lakers, to win their first NBA championship in 14 years. The first time the Pistons clinched the championship on their home floor in Michigan. And that fact was not lost on the thousands of fans who spilled onto the streets. Just look at that. Oh, my gosh. Police say the celebrations were relatively peaceful, though. Detroit will host a parade for the Pistons tomorrow.

MYERS: You know what's ironic about this?

COSTELLO: What?

MYERS: Is that the same guy who owns the Pistons owns the Tampa Bay Lighting. He just won the Stanley Cup and now he wins the basketball championship.

COSTELLO: He's the 81-year-old guy?

MYERS: Yes.

COSTELLO: Yes, because one of the Pistons picked him up off the -- I think it was Chauncey Billups. I don't know.

MYERS: Yes. Amazing.

COSTELLO: I don't know, but those names are going to become quite famous -- Chauncey Billups and Ben Wallace.

MYERS: Yes, and relatively, as you were saying, most of the celebrations were in good taste last night.

COSTELLO: In very good taste. They were chanting...

MYERS: Unlike the comedian that said that they were going to burn the city down. It didn't happen.

COSTELLO: Well, he was kicked off the airwaves. He was some radio D.J.

MYERS: He sure was.

COSTELLO: But this is what the crowd was chanting...

MYERS: No, he was a TV guy.

COSTELLO: Was it a TV guy?

MYERS: It was a late night comedian.

COSTELLO: Oh, I know which one it was.

MYERS: And they kicked him off Detroit TV in a big hurry.

COSTELLO: Are his initials J.K.? No.

MYERS: No.

COSTELLO: We'll figure that out.

MYERS: Yes, yes.

COSTELLO: Do you guys know? Yes? OK.

MYERS: Yes.

COSTELLO: OK, this is what they were chanting in Detroit: "Ain't no party like Detroit party because Detroit party don't stop!" They were chanting that all night long.

MYERS: Yes, but you need a little bit more hip.

COSTELLO: I can't. I don't have any more hip.

MYERS: Because that ain't how they said it.

COSTELLO: OK, you do it, Mr. Rap Star.

MYERS: No. I was doing it upstairs. That's enough of that.

COSTELLO: I wish I could have been there.

MYERS: I would not.

COSTELLO: Time for our daily update on the traveling torch. The Olympic symbol was in Mexico City, where it was carried by 93-year-old Rosario Ingelsias. Mexico City hosted the 1968 Summer Games. Inglesias is a world record holder in track for athletes over the age of 85. Ah. The torch will be in Los Angeles today. Ninety-five- year-old former Olympian Peter Clentzos will be among the torch bearers. Clentzos competed for Greece in the 1932 Games in L.A. Celebrities such as Sylvester Stallone and Tom Cruise will also get into the act.

After Los Angeles, the flame heads to St. Louis before heading here to Atlanta and that's where I'll take a turn on the torch.

MYERS: Yes.

COSTELLO: I still can't believe I'm -- I have the honor.

MYERS: You get to run.

COSTELLO: I'm very excited about that.

As we watch the torch travel across North America, DAYBREAK is taking a closer look at the upcoming Games in Athens. All week long we'll be going in depth, talking about the Games, the athletes, the security issues and the big question -- will Athens be ready in time for the Olympics? On Friday, when the torch comes to Atlanta, we'll be bringing you the last half of DAYBREAK from our Olympic home, Centennial Park. So be sure to join us on Friday.

It is time for our DAYBREAK Eye-Opener right now.

It's an old saying, but the sentiment is the same -- what goes around comes around. That's the case for 44-year-old Mitzi Nichols. Nichols won half a million dollars in the Virginia lottery this week. But she first made news a few years ago by donating a kidney to a total stranger. Among the items on her shopping list are car repairs for the kidney recipient. Wow!

Time for some animal tricks. Some barn swallows at a Minnesota Home Depot store have learned how to open the doors.

MYERS: Hmmm?

COSTELLO: Yes! They fly past the sensor that triggers the automatic doors and once inside they can feed their young, who are now living in a nest in the ceiling. And then after the feeding, it's back outside to find the next course. Apparently they haven't found the bird seed aisle.

In North Carolina, a retired New York City police officer is on dog doo patrol. Al Crocker runs his own business as a professional pooper scooper and he says business is piling up.

That was bad, wasn't it?

MYERS: It was. You didn't write it.

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

It's enough to make you sweat -- literally.

Later this hour, the summer sizzle -- it's setting records. We'll tell you if your town makes the list of sweatiest cities.

And terrorism in the courts -- some Muslim Americans are sentenced for training for holy war. Is it making a difference in the war on terror?

And abortion and politics -- two hot topics that always seem to be connected. Later this hour, how it's tearing the Catholic Church apart.

This is DAYBREAK for Wednesday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT: Nobody is probably happier when your pen runs out of ink or your copier runs out of paper than office supply giant Staples. The company that refills everything from paper to Post-Its recently posted a quarterly profit five times larger than the same period in 2003. Crucial to its success was a five percent increase in same store sales, which are locations open at least a year.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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