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CNN Live At Daybreak

Pipeline Attacks in Iraq Cut Off Oil Exports; 9/11 Revelations; Study Looks at Liposuction Health Benefits

Aired June 17, 2004 - 06:30   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: And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.
At least 35 people were killed this morning and 138 wounded when a car bomb exploded outside of an Iraqi army recruiting center in Baghdad. One hundred and seventy-five army recruits in the center escaped unhurt.

The 9/11 Commission holds its final public hearing today, and commission member Richard Ben-Veniste -- I'm sorry -- says information released earlier on 9/11, including some given under oath, will have to be corrected.

In money news, fallout from the sabotage of Iraq's oil pipelines, OPEC is asking non-OPEC countries to boost their output to avert another spike in oil prices. No response yet.

In culture, American entertainer Bob Dylan will get an honorary degree from a university in Scotland. St. Andrews University will award the honorary doctorate during a graduation ceremony next week.

And in sports, Jim Furyk defends his title today when the U.S. Open gets under way at South Hampton, New York, but the big names, Tiger Woods, Ernie Els and Vijay Singh, will get the spotlight.

(WEATHER BREAK)

COSTELLO: A suicide car bomber strikes an Iraqi army recruiting center in Baghdad today, killing or injuring dozens. Officials say at least 35 were killed and some 138 others wounded. None of the Iraqi recruits were hurt. A bus passing the center took the brunt of the explosion.

Earlier today, we spoke with our chief international correspondent, Christiane Amanpour, in Baghdad.

(BEGIN VIDEO CLIP)

LT. COL. MIKE MURRAY, U.S. ARMY: At about 9:00 this morning, there was what we believe to be suicide bomb detonated in front of the Iraqi army recruiting station, which is inside of where that bomb detonated. There were approximately 175 recruits that showed up this morning. They were all inside the gate.

There were no injuries to anybody that was here to sign up for the Iraqi army. Most of those wounded, more than likely, came off of a bus that happened to be near the area when the bomb went off.

There are no U.S. casualties, and there are no Iraqi army casualties. So this clearly, again, was an attack that hurt the Iraqi people.

(END VIDEO CLIP)

COSTELLO: And our Christiane Amanpour interviewed that military officer earlier. He said innocent passersby were hurt in the explosion. None of the Iraqi army recruits were injured, and there were no American casualties.

Repeated attacks on key southern oil pipelines in Iraq have again cut off Iraqi oil. Just two weeks away from the transfer of power, Iraq is in danger of losing the revenues necessary to run and rebuild the country.

CNN's Kitty Pilgrim has more for you.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN BUSINESS CORRESPONDENT (voice-over): Iraqi oil exports have been cut off. Terrorist attacks knocked out southern pipelines and oil exports through Iraq's two offshore terminals in the south. The fire from the attack caused heavy damage.

The attacks escalated this week, but there have been some 130 attacks over the past seven months. The purpose: to sabotage oil and oil revenues meant for funding the new government and reconstruction.

DAN SENOR, COALITION SPOKESMAN: It is an effort to basically economically impoverish the Iraqi people, wreak havoc in this country in the lead-up to the June 30 handover.

PILGRIM: Several pipeline attacks over a three-day period last week caused power disruptions. Oil was being exported from southern Iraq. Just after the war, terrorist attacks targeted the main pipelines in the north of Iraq that ran from Kirkuk to the Port of Ceyhan in Turkey. The average production along that line, some 250,000 barrels a day, went down to virtually zero.

Fleets of coalition ships are now protecting Iraq's offshore oil terminals in the south, which were targeted in April by suicide bombers. Those attacks failed.

Now, the highly-optimistic projections for Iraq's oil revenues look less and less likely. Output even before the latest attacks was already lagging, averaging 1.8 million barrels a day.

JOHN KINGSTON, PLATT GLOBAL ENERGY: The Iraqis were hoping to hit production of three million barrels a day by the end of the year. That's not going to happen. They were looking to go to four million barrels a day over the next couple of years. That's not going to happen unless they get $10 billion to $20 billion in investment, and no outside companies are going to invest that kind of money in that sort of chaos. Kitty Pilgrim, CNN.

(END VIDEOTAPE)

COSTELLO: In Saudi Arabia this morning, time could be running out for kidnapped American Paul Johnson. Johnson's abductors say they will kill him tomorrow if their demands are not met. Johnson, a Lockheed Martin employee, was kidnapped on Saturday. His family continues to plead for his release.

(BEGIN VIDEO CLIP)

DONNA MAYEUX, JOHNSON'S SISTER: He's an innocent man. Killing him is not going to solve anything. We would just like his safe return. My mother, his wife, my niece, and my three girls, we would just like his safe return.

(END VIDEO CLIP)

COSTELLO: A U.S. senator following the kidnapping of the American in Saudi Arabia calls the situation grim.

You might remember hearing shortly after the 9/11 attacks that the military was prepared to shoot down any civilian aircraft. Well, it turns out that is not true. A member of the 9/11 Commission says a number of urban myths about that awful day will be dispelled during this last day of public testimony. The hearing resumes at 8:00 Eastern.

On Wednesday, the commission learned that al Qaeda leader Osama bin Laden wanted to attack the United States in 2000, but was told the hijackers were not ready then.

So, we also know Osama bin Laden pushed hard to attack the United States in a big way. The 9/11 Commission found bin Laden studied the plan, downgraded it and then gave the final orders.

So, what is his role now? Did he accomplish what he wanted to that terrible day?

Joining us live is senior investigative producer Henry Schuster.

HENRY SCHUSTER, CNN SENIOR INVESTIGATIVE PRODUCER: Good morning.

COSTELLO: Good morning, and thanks for joining DAYBREAK.

SCHUSTER: Good morning.

COSTELLO: So, bin Laden apparently thought by attacking the United States in some big way, it would attract more recruits to al Qaeda. Did that happen?

SCHUSTER: Well, it seemed to have backfired. What we learned yesterday, which we hadn't heard before, was about the internal dissension within the al Qaeda leadership about how effective the plan might be. And it turns out that a lot of people, senior leaders of al Qaeda, were arguing that no, the U.S. would attack. And bin Laden apparently didn't believe that. He thought the U.S. would not respond because it didn't respond with the Cole. And, in fact, the U.S. attack pretty much destroyed the base of operations for al Qaeda in Afghanistan. And their training ground, their place for people to come and do jihad went way.

COSTELLO: I guess it would be hard to know just how many members are being recruited to al Qaeda. There simply is no way of knowing right now.

SCHUSTER: No, there is no way of knowing. But interestingly, about a month ago a study came out that said that al Qaeda was benefiting greatly from the war in Iraq, at least in the short term; that it was attracting a whole new generation of recruits to al Qaeda or al Qaeda-related groups.

Now, these are not people who are picking up and going to Afghanistan now, and from the numbers that we have gotten, it's not clear that very many of them are even going to Iraq. And I think the numbers are in the hundreds to the thousand who are going to Iraq. But that's right now.

But still, all over the world, al Qaeda-related groups, where they are now called affiliates, part of a wider network, they do seem to be picking up, at least in the short term, recruits.

COSTELLO: The other question I had, it came out that it took $30 million to run al Qaeda pre-9/11. And most of that money went to the Taliban in Afghanistan, like $10 million to $20 million of it. I wonder how much it's costing now and where the money is coming from to fund new al Qaeda recruits.

SCHUSTER: Well, one of the interesting things that we're finding out about these various affiliate groups, including in Iraq, is that they seem to be self-financing. Even before 9/11, a lot of these parts like Ahmed Rassan (ph), he was the guy who tried to blow up Los Angeles International Airport, he went to Canada and he was involved in credit card scams.

And what we're hearing now is that some of the groups in Europe, some of the groups in Iraq, I was talking to some intelligence officials in the region about Abu Musab al-Zarqawi operating in Iraq. And they say that he's getting his money, some of it in Europe, some of it they think is coming in Iraq, and some of it they even think is coming from the sale, of all things, of used cars in Iraq, which is a big moneymaking business all across Iraq these days.

COSTELLO: Wow! Interesting. I wish we had more time with you. It's fascinating information this morning. Thank you, Henry, for joining DAYBREAK.

SCHUSTER: You're welcome.

COSTELLO: If you have ever wanted to sell something on eBay but didn't quite know how, one company is making it easier for you. We'll explain next.

And mattresses on the highways, just how dangerous roadway debris can be.

(COMMERCIAL BREAK)

COSTELLO: It's time for a little business buzz now. Forget about logging on. Soon you can drop off goods for sale on eBay at your local UPS store.

Carrie Lee has the explanation live from the Nasdaq Marketsite.

Tell us.

CARRIE LEE, CNN FINANCIAL NEWS: Well, the idea here, Carol -- and this is a "Wall Street Journal" story today -- is to give people a chance to sell items on eBay without going through the hassle of setting up an account, dealing with shipping the items. So, UPS and Auction Drop are putting together a deal, expected to be announced officially next week, that will let people drop off goods for sale on eBay at any of the 3,400 UPS stores nationwide. Auction Drop will then sell the items on eBay for a commission.

Now, keep in mind these commissions are pretty hefty, anywhere from 20 to 40 percent of the price of the item, and the items have to be worth at least $50 -- $50 to $75. This is a growing industry. I'm not sure if it's going to work as a business model yet. Some of these other companies that do this are yet unproven. But certainly all of these sort of fringe industries that are growing -- fringe businesses, rather, that are growing as a result of eBay's success.

So this is expected to be announced officially next week. If the item isn't sold, Auction Drop will send the item back to the customer for free.

UPS, meanwhile, makes out because it is shipping these items, so that's where UPS' money comes in to play.

COSTELLO: A great scheme there. Thank you, Carrie Lee.

LEE: Yes, we'll see if it works. OK.

COSTELLO: Yes. Thank you, Carrie Lee, live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

The Somali man charged in a plot to blow up a Columbus, Ohio, shopping mall has now been moved to a psychiatric facility. The judge wants to determine whether Nuradin Abdi is competent to stand trial.

If you work for Exxon-Mobil, do not use your cell phone while driving on company business. That new safety rule from the world's largest oil company applies to employees and contractors. In money news, Napster is working hard to make it as a legit online music service. The Web site is giving away a free MP3 player with a one-year subscription. The player is worth about $130.

In culture, some big bucks spent on the memory of rock legend Jimmy Hendrix. Among the items sold at a London auction house was an original recording by Hendrix. It fetched more than $36,000.

In sports, the (UNINTELLIGIBLE) Serena Williams is the No. 1 seed at Wimbledon, even though she's ranked No. 10 in the world. Venus Williams, meantime, is No. 3.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

A little bit of health news now. More than 400,000 people get liposuction every year, and many of those people turn to the procedure for health reasons. But as medical correspondent Elizabeth Cohen reports, the health benefits may surprise you.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Oh!

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): About a year and a half ago, Cheryl Strahm had 20 pounds of fat sucked out of her stomach. She did it to look better and...

CHERYL STRAHM, LIPOSUCTION STUDY PARTICIPANT: To lower my blood sugar, lower my cholesterol and lower my blood pressure. That's what I was hoping for.

COHEN: But it didn't turn out that way. Strahm is part of a new study that found that having liposuction, even having lots of fat removed like she did, does not help lower blood sugar, lower cholesterol or lower blood pressure. Strahm says she was surprised. She thought losing all that weight would help those health problems. So why didn't it?

DR. SAMUEL KLEIN, WASH. UNIVERSITY IN SAINT LOUIS: It's not how much fat but how you lose the fat that's important.

COHEN: Dr. Klein says only diet and exercise actually reduce the fat in the liver and in the muscles, which are important for health benefits. Liposuction doesn't touch that kind of fat.

Strahm says she is still glad she got the quick weight loss with lipo. Now she can move more easily, take walks every day.

STRAHM: When you feel better about yourself, dieting is easier.

COHEN: Now she's not looking for that quick fix but for a slow and steady weight loss that will make her slimmer and healthier.

Elizabeth Cohen, CNN, Atlanta. (END VIDEOTAPE)

COSTELLO: And still to come on DAYBREAK, why some residents in Sin City are concerned about this mural that shows more than a little skin. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Let's talk about that little 4-year-old boy at the Texas Rangers stadium a couple of days ago.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: Did you hear about this story? This 4-year-old is in the stands with his mom, a ball comes flying up, and this big guy behind the little boy goes to catch the ball, knocks the kid out of the way.

MYERS: Kicks him on the way over, because he actually has to get to the ground. His leg comes up and kicks the little guy.

COSTELLO: Kicks the kid, and he keeps the ball. The grown up keeps the ball!

MYERS: The whole stadium...

COSTELLO: The whole stadium is chanting...

MYERS: ... "give him the ball, give him the ball."

COSTELLO: He does not do it. Well, the kid is the big winner now, because -- that's Reggie Sanders. He came up...

MYERS: Good PR.

COSTELLO: ... gave the kid a bat and some signed balls. He even got a signed ball from Nolan Ryan out of this deal. And let's get to the kicker.

MYERS: Notice the...

COSTELLO: The guy?

MYERS: Yes.

COSTELLO: The big guy who caught the ball, he is a?

MYERS: Youth minister, yes. Notice the guy is not in the background. He left in the middle of the game with the ball.

COSTELLO: He got out of there.

MYERS: He got out of there.

COSTELLO: Yes. And the other interesting story of the morning is on our Web site, and I know it's weird, but... MYERS: This is your favorite story of the day.

COSTELLO: This is my favorite story of the morning. On our Web site, you can click on to the most favorite stories. This is the favorite story of people who use the Internet and the CNN.com Web site: pandas watching porn video...

MYERS: Panda porn.

COSTELLO: Panda porn.

MYERS: Other pandas having...

COSTELLO: Having sex, come on, say it.

MYERS: Right.

COSTELLO: And actually, the zoo keepers in China put it in the pandas' cage to make them do the nasty, and it apparently worked.

MYERS: It worked.

COSTELLO: Because the panda became pregnant shortly thereafter.

MYERS: And, see, my theory is that normal pandas in the wild see other pandas and figure out what they're doing, right? These pandas are in a zoo, and they don't see any other pandas. They don't even know what's they're supposed to do. I'm pretty much sure that nature would probably take care of that.

COSTELLO: Want to give the cup away now?

MYERS: I can do that.

COSTELLO: OK.

MYERS: Because I know you're blushing, because you're about to get married in three weeks. That won't be your favorite story in three weeks.

Anyway, hey, here's the mug right there. We didn't have any questions for you yesterday. We really ran out of time. But the 101- year-old parachutist is from what country? That was the "what is it" question, the picture. The guy jumping out of the plane was 101 years old yesterday.

What is the title of the new documentary about former President Bill Clinton?

COSTELLO: Tough one.

MYERS: E-mail your answers to Daybreak@CNN.com. Daybreak@CNN.com. Don't look for a link on the Web site. It's not there. Just go to your e-mail, type it up there in the e-mail page and send it in. COSTELLO: Send it in. Daybreak@CNN.com. Chad will join me for "The Lightning Round" coming up, but first the latest headlines for you.

(COMMERCIAL BREAK)

COSTELLO: Remember Joe Piscopo's impersonation of Frank Sinatra?

MYERS: Yes.

COSTELLO: It was really funny.

MYERS: I can't believe Barry Manilow is almost 60.

COSTELLO: I know. I know. It makes me feel even older than I feel this morning.

You know, the U.S. Open is going to kick off today.

MYERS: Yes.

COSTELLO: They are expecting some rain in New York.

MYERS: They are, and the rain could be heavy at times.

(WEATHER BREAK)

COSTELLO: It is time for "The Lightning Round," so let's get right to it.

They are seeing triple in Sacramento. In recent weeks, four sets of triplets have been born at a hospital there. At one hospital. Amazing.

MYERS: Oh, check the water.

COSTELLO: Maybe they have the panda video -- never mind.

Calling all cars...

MYERS: (UNINTELLIGIBLE).

COSTELLO: Sorry, that story cracks me up.

Calling all cars. Be on the lookout for one big furry suspect. Police in Bourbon Missouri, haven't been able to catch this black bear. They think he came down from the Ozark Mountains, but you can bet he'll fight extradition.

MYERS: Car 54, where are you?

COSTELLO: Is it art or is it a no-no? Some residents of this Las Vegas neighborhood are offended by this mural of a naked woman. Of course, we cannot show you the entire portrait because this is a family show.

MYERS: No, but we can...

COSTELLO: This is actually displayed near a school, a bus stop.

MYERS: Oh, I see.

COSTELLO: Which is why people are objecting to it. Others, though, give it a big thumbs-up. They won't appear on camera, though.

MYERS: Exactly. A hot day in Vegas today, 102 in Vegas, so maybe (UNINTELLIGIBLE).

COSTELLO: Maybe so. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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 17, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Here are the latest headlines for you now.
At least 35 people were killed this morning and 138 wounded when a car bomb exploded outside of an Iraqi army recruiting center in Baghdad. One hundred and seventy-five army recruits in the center escaped unhurt.

The 9/11 Commission holds its final public hearing today, and commission member Richard Ben-Veniste -- I'm sorry -- says information released earlier on 9/11, including some given under oath, will have to be corrected.

In money news, fallout from the sabotage of Iraq's oil pipelines, OPEC is asking non-OPEC countries to boost their output to avert another spike in oil prices. No response yet.

In culture, American entertainer Bob Dylan will get an honorary degree from a university in Scotland. St. Andrews University will award the honorary doctorate during a graduation ceremony next week.

And in sports, Jim Furyk defends his title today when the U.S. Open gets under way at South Hampton, New York, but the big names, Tiger Woods, Ernie Els and Vijay Singh, will get the spotlight.

(WEATHER BREAK)

COSTELLO: A suicide car bomber strikes an Iraqi army recruiting center in Baghdad today, killing or injuring dozens. Officials say at least 35 were killed and some 138 others wounded. None of the Iraqi recruits were hurt. A bus passing the center took the brunt of the explosion.

Earlier today, we spoke with our chief international correspondent, Christiane Amanpour, in Baghdad.

(BEGIN VIDEO CLIP)

LT. COL. MIKE MURRAY, U.S. ARMY: At about 9:00 this morning, there was what we believe to be suicide bomb detonated in front of the Iraqi army recruiting station, which is inside of where that bomb detonated. There were approximately 175 recruits that showed up this morning. They were all inside the gate.

There were no injuries to anybody that was here to sign up for the Iraqi army. Most of those wounded, more than likely, came off of a bus that happened to be near the area when the bomb went off.

There are no U.S. casualties, and there are no Iraqi army casualties. So this clearly, again, was an attack that hurt the Iraqi people.

(END VIDEO CLIP)

COSTELLO: And our Christiane Amanpour interviewed that military officer earlier. He said innocent passersby were hurt in the explosion. None of the Iraqi army recruits were injured, and there were no American casualties.

Repeated attacks on key southern oil pipelines in Iraq have again cut off Iraqi oil. Just two weeks away from the transfer of power, Iraq is in danger of losing the revenues necessary to run and rebuild the country.

CNN's Kitty Pilgrim has more for you.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN BUSINESS CORRESPONDENT (voice-over): Iraqi oil exports have been cut off. Terrorist attacks knocked out southern pipelines and oil exports through Iraq's two offshore terminals in the south. The fire from the attack caused heavy damage.

The attacks escalated this week, but there have been some 130 attacks over the past seven months. The purpose: to sabotage oil and oil revenues meant for funding the new government and reconstruction.

DAN SENOR, COALITION SPOKESMAN: It is an effort to basically economically impoverish the Iraqi people, wreak havoc in this country in the lead-up to the June 30 handover.

PILGRIM: Several pipeline attacks over a three-day period last week caused power disruptions. Oil was being exported from southern Iraq. Just after the war, terrorist attacks targeted the main pipelines in the north of Iraq that ran from Kirkuk to the Port of Ceyhan in Turkey. The average production along that line, some 250,000 barrels a day, went down to virtually zero.

Fleets of coalition ships are now protecting Iraq's offshore oil terminals in the south, which were targeted in April by suicide bombers. Those attacks failed.

Now, the highly-optimistic projections for Iraq's oil revenues look less and less likely. Output even before the latest attacks was already lagging, averaging 1.8 million barrels a day.

JOHN KINGSTON, PLATT GLOBAL ENERGY: The Iraqis were hoping to hit production of three million barrels a day by the end of the year. That's not going to happen. They were looking to go to four million barrels a day over the next couple of years. That's not going to happen unless they get $10 billion to $20 billion in investment, and no outside companies are going to invest that kind of money in that sort of chaos. Kitty Pilgrim, CNN.

(END VIDEOTAPE)

COSTELLO: In Saudi Arabia this morning, time could be running out for kidnapped American Paul Johnson. Johnson's abductors say they will kill him tomorrow if their demands are not met. Johnson, a Lockheed Martin employee, was kidnapped on Saturday. His family continues to plead for his release.

(BEGIN VIDEO CLIP)

DONNA MAYEUX, JOHNSON'S SISTER: He's an innocent man. Killing him is not going to solve anything. We would just like his safe return. My mother, his wife, my niece, and my three girls, we would just like his safe return.

(END VIDEO CLIP)

COSTELLO: A U.S. senator following the kidnapping of the American in Saudi Arabia calls the situation grim.

You might remember hearing shortly after the 9/11 attacks that the military was prepared to shoot down any civilian aircraft. Well, it turns out that is not true. A member of the 9/11 Commission says a number of urban myths about that awful day will be dispelled during this last day of public testimony. The hearing resumes at 8:00 Eastern.

On Wednesday, the commission learned that al Qaeda leader Osama bin Laden wanted to attack the United States in 2000, but was told the hijackers were not ready then.

So, we also know Osama bin Laden pushed hard to attack the United States in a big way. The 9/11 Commission found bin Laden studied the plan, downgraded it and then gave the final orders.

So, what is his role now? Did he accomplish what he wanted to that terrible day?

Joining us live is senior investigative producer Henry Schuster.

HENRY SCHUSTER, CNN SENIOR INVESTIGATIVE PRODUCER: Good morning.

COSTELLO: Good morning, and thanks for joining DAYBREAK.

SCHUSTER: Good morning.

COSTELLO: So, bin Laden apparently thought by attacking the United States in some big way, it would attract more recruits to al Qaeda. Did that happen?

SCHUSTER: Well, it seemed to have backfired. What we learned yesterday, which we hadn't heard before, was about the internal dissension within the al Qaeda leadership about how effective the plan might be. And it turns out that a lot of people, senior leaders of al Qaeda, were arguing that no, the U.S. would attack. And bin Laden apparently didn't believe that. He thought the U.S. would not respond because it didn't respond with the Cole. And, in fact, the U.S. attack pretty much destroyed the base of operations for al Qaeda in Afghanistan. And their training ground, their place for people to come and do jihad went way.

COSTELLO: I guess it would be hard to know just how many members are being recruited to al Qaeda. There simply is no way of knowing right now.

SCHUSTER: No, there is no way of knowing. But interestingly, about a month ago a study came out that said that al Qaeda was benefiting greatly from the war in Iraq, at least in the short term; that it was attracting a whole new generation of recruits to al Qaeda or al Qaeda-related groups.

Now, these are not people who are picking up and going to Afghanistan now, and from the numbers that we have gotten, it's not clear that very many of them are even going to Iraq. And I think the numbers are in the hundreds to the thousand who are going to Iraq. But that's right now.

But still, all over the world, al Qaeda-related groups, where they are now called affiliates, part of a wider network, they do seem to be picking up, at least in the short term, recruits.

COSTELLO: The other question I had, it came out that it took $30 million to run al Qaeda pre-9/11. And most of that money went to the Taliban in Afghanistan, like $10 million to $20 million of it. I wonder how much it's costing now and where the money is coming from to fund new al Qaeda recruits.

SCHUSTER: Well, one of the interesting things that we're finding out about these various affiliate groups, including in Iraq, is that they seem to be self-financing. Even before 9/11, a lot of these parts like Ahmed Rassan (ph), he was the guy who tried to blow up Los Angeles International Airport, he went to Canada and he was involved in credit card scams.

And what we're hearing now is that some of the groups in Europe, some of the groups in Iraq, I was talking to some intelligence officials in the region about Abu Musab al-Zarqawi operating in Iraq. And they say that he's getting his money, some of it in Europe, some of it they think is coming in Iraq, and some of it they even think is coming from the sale, of all things, of used cars in Iraq, which is a big moneymaking business all across Iraq these days.

COSTELLO: Wow! Interesting. I wish we had more time with you. It's fascinating information this morning. Thank you, Henry, for joining DAYBREAK.

SCHUSTER: You're welcome.

COSTELLO: If you have ever wanted to sell something on eBay but didn't quite know how, one company is making it easier for you. We'll explain next.

And mattresses on the highways, just how dangerous roadway debris can be.

(COMMERCIAL BREAK)

COSTELLO: It's time for a little business buzz now. Forget about logging on. Soon you can drop off goods for sale on eBay at your local UPS store.

Carrie Lee has the explanation live from the Nasdaq Marketsite.

Tell us.

CARRIE LEE, CNN FINANCIAL NEWS: Well, the idea here, Carol -- and this is a "Wall Street Journal" story today -- is to give people a chance to sell items on eBay without going through the hassle of setting up an account, dealing with shipping the items. So, UPS and Auction Drop are putting together a deal, expected to be announced officially next week, that will let people drop off goods for sale on eBay at any of the 3,400 UPS stores nationwide. Auction Drop will then sell the items on eBay for a commission.

Now, keep in mind these commissions are pretty hefty, anywhere from 20 to 40 percent of the price of the item, and the items have to be worth at least $50 -- $50 to $75. This is a growing industry. I'm not sure if it's going to work as a business model yet. Some of these other companies that do this are yet unproven. But certainly all of these sort of fringe industries that are growing -- fringe businesses, rather, that are growing as a result of eBay's success.

So this is expected to be announced officially next week. If the item isn't sold, Auction Drop will send the item back to the customer for free.

UPS, meanwhile, makes out because it is shipping these items, so that's where UPS' money comes in to play.

COSTELLO: A great scheme there. Thank you, Carrie Lee.

LEE: Yes, we'll see if it works. OK.

COSTELLO: Yes. Thank you, Carrie Lee, live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

The Somali man charged in a plot to blow up a Columbus, Ohio, shopping mall has now been moved to a psychiatric facility. The judge wants to determine whether Nuradin Abdi is competent to stand trial.

If you work for Exxon-Mobil, do not use your cell phone while driving on company business. That new safety rule from the world's largest oil company applies to employees and contractors. In money news, Napster is working hard to make it as a legit online music service. The Web site is giving away a free MP3 player with a one-year subscription. The player is worth about $130.

In culture, some big bucks spent on the memory of rock legend Jimmy Hendrix. Among the items sold at a London auction house was an original recording by Hendrix. It fetched more than $36,000.

In sports, the (UNINTELLIGIBLE) Serena Williams is the No. 1 seed at Wimbledon, even though she's ranked No. 10 in the world. Venus Williams, meantime, is No. 3.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

A little bit of health news now. More than 400,000 people get liposuction every year, and many of those people turn to the procedure for health reasons. But as medical correspondent Elizabeth Cohen reports, the health benefits may surprise you.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Oh!

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): About a year and a half ago, Cheryl Strahm had 20 pounds of fat sucked out of her stomach. She did it to look better and...

CHERYL STRAHM, LIPOSUCTION STUDY PARTICIPANT: To lower my blood sugar, lower my cholesterol and lower my blood pressure. That's what I was hoping for.

COHEN: But it didn't turn out that way. Strahm is part of a new study that found that having liposuction, even having lots of fat removed like she did, does not help lower blood sugar, lower cholesterol or lower blood pressure. Strahm says she was surprised. She thought losing all that weight would help those health problems. So why didn't it?

DR. SAMUEL KLEIN, WASH. UNIVERSITY IN SAINT LOUIS: It's not how much fat but how you lose the fat that's important.

COHEN: Dr. Klein says only diet and exercise actually reduce the fat in the liver and in the muscles, which are important for health benefits. Liposuction doesn't touch that kind of fat.

Strahm says she is still glad she got the quick weight loss with lipo. Now she can move more easily, take walks every day.

STRAHM: When you feel better about yourself, dieting is easier.

COHEN: Now she's not looking for that quick fix but for a slow and steady weight loss that will make her slimmer and healthier.

Elizabeth Cohen, CNN, Atlanta. (END VIDEOTAPE)

COSTELLO: And still to come on DAYBREAK, why some residents in Sin City are concerned about this mural that shows more than a little skin. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Let's talk about that little 4-year-old boy at the Texas Rangers stadium a couple of days ago.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: Did you hear about this story? This 4-year-old is in the stands with his mom, a ball comes flying up, and this big guy behind the little boy goes to catch the ball, knocks the kid out of the way.

MYERS: Kicks him on the way over, because he actually has to get to the ground. His leg comes up and kicks the little guy.

COSTELLO: Kicks the kid, and he keeps the ball. The grown up keeps the ball!

MYERS: The whole stadium...

COSTELLO: The whole stadium is chanting...

MYERS: ... "give him the ball, give him the ball."

COSTELLO: He does not do it. Well, the kid is the big winner now, because -- that's Reggie Sanders. He came up...

MYERS: Good PR.

COSTELLO: ... gave the kid a bat and some signed balls. He even got a signed ball from Nolan Ryan out of this deal. And let's get to the kicker.

MYERS: Notice the...

COSTELLO: The guy?

MYERS: Yes.

COSTELLO: The big guy who caught the ball, he is a?

MYERS: Youth minister, yes. Notice the guy is not in the background. He left in the middle of the game with the ball.

COSTELLO: He got out of there.

MYERS: He got out of there.

COSTELLO: Yes. And the other interesting story of the morning is on our Web site, and I know it's weird, but... MYERS: This is your favorite story of the day.

COSTELLO: This is my favorite story of the morning. On our Web site, you can click on to the most favorite stories. This is the favorite story of people who use the Internet and the CNN.com Web site: pandas watching porn video...

MYERS: Panda porn.

COSTELLO: Panda porn.

MYERS: Other pandas having...

COSTELLO: Having sex, come on, say it.

MYERS: Right.

COSTELLO: And actually, the zoo keepers in China put it in the pandas' cage to make them do the nasty, and it apparently worked.

MYERS: It worked.

COSTELLO: Because the panda became pregnant shortly thereafter.

MYERS: And, see, my theory is that normal pandas in the wild see other pandas and figure out what they're doing, right? These pandas are in a zoo, and they don't see any other pandas. They don't even know what's they're supposed to do. I'm pretty much sure that nature would probably take care of that.

COSTELLO: Want to give the cup away now?

MYERS: I can do that.

COSTELLO: OK.

MYERS: Because I know you're blushing, because you're about to get married in three weeks. That won't be your favorite story in three weeks.

Anyway, hey, here's the mug right there. We didn't have any questions for you yesterday. We really ran out of time. But the 101- year-old parachutist is from what country? That was the "what is it" question, the picture. The guy jumping out of the plane was 101 years old yesterday.

What is the title of the new documentary about former President Bill Clinton?

COSTELLO: Tough one.

MYERS: E-mail your answers to Daybreak@CNN.com. Daybreak@CNN.com. Don't look for a link on the Web site. It's not there. Just go to your e-mail, type it up there in the e-mail page and send it in. COSTELLO: Send it in. Daybreak@CNN.com. Chad will join me for "The Lightning Round" coming up, but first the latest headlines for you.

(COMMERCIAL BREAK)

COSTELLO: Remember Joe Piscopo's impersonation of Frank Sinatra?

MYERS: Yes.

COSTELLO: It was really funny.

MYERS: I can't believe Barry Manilow is almost 60.

COSTELLO: I know. I know. It makes me feel even older than I feel this morning.

You know, the U.S. Open is going to kick off today.

MYERS: Yes.

COSTELLO: They are expecting some rain in New York.

MYERS: They are, and the rain could be heavy at times.

(WEATHER BREAK)

COSTELLO: It is time for "The Lightning Round," so let's get right to it.

They are seeing triple in Sacramento. In recent weeks, four sets of triplets have been born at a hospital there. At one hospital. Amazing.

MYERS: Oh, check the water.

COSTELLO: Maybe they have the panda video -- never mind.

Calling all cars...

MYERS: (UNINTELLIGIBLE).

COSTELLO: Sorry, that story cracks me up.

Calling all cars. Be on the lookout for one big furry suspect. Police in Bourbon Missouri, haven't been able to catch this black bear. They think he came down from the Ozark Mountains, but you can bet he'll fight extradition.

MYERS: Car 54, where are you?

COSTELLO: Is it art or is it a no-no? Some residents of this Las Vegas neighborhood are offended by this mural of a naked woman. Of course, we cannot show you the entire portrait because this is a family show.

MYERS: No, but we can...

COSTELLO: This is actually displayed near a school, a bus stop.

MYERS: Oh, I see.

COSTELLO: Which is why people are objecting to it. Others, though, give it a big thumbs-up. They won't appear on camera, though.

MYERS: Exactly. A hot day in Vegas today, 102 in Vegas, so maybe (UNINTELLIGIBLE).

COSTELLO: Maybe so. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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