Return to Transcripts main page

CNN Live At Daybreak

Multiple Attacks in Five Iraqi Cities; Bomb Hits Near Turkish Hotel Where President Bush is to Stay; China Trade

Aired June 24, 2004 - 06:00   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: And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello. Let me bring you up to date. There is a lot happening this morning.
Insurgents have launched a series of coordinated attacks against targets in several Iraqi cities. This has been going on overnight. Dozens have been killed, including three American soldiers.

An explosion at a hotel in Ankara, Turkey; this happened about three hours ago. A small bomb went off near the hotel, which is a likely stopping point for President Bush's trip to Turkey this weekend. Two police officers were wounded.

Eight British troops who were being held in Iran are now in the custody of British officials. The six marines and two sailors had been detained since crossing into Iranian waters on Monday.

In money news, spammer or slammer? Two men, including one AOL employee, were arrested for allegedly stealing and selling 92 million AOL screen names. The list was sold to e-mail spammers.

In culture, President Bush honored 13 individuals with the Presidential Medal of Freedom. Among the recipients: Arnold Palmer, Rita Marino and Pope John Paul, II.

In sports, the annual NBA draft picks plays tonight. The Orlando Magic has the first pick and is expected to choose either high school phenom Dwight Howard or University of Connecticut star Emeka Okafor.

(WEATHER BREAK)

COSTELLO: Six days to go, and it has not been a good morning in Iraq -- a series of simultaneous attacks in Mosul, in Baqubah, in Ramadi, in Fallujah, in Baghdad. There are a number of people dead, including U.S. troops.

Let's take you live to Baghdad now and Brent Sadler to bring us up to date.

Hello -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Hello. Good morning, Carol.

A series of assaults against primarily Iraqi police stations in all of those cities. Let's start first of all in Mosul to the north of the capital, Baghdad. A U.S. soldier was killed in one of a series of blasts that hit that city. A dawn to dusk curfew has been imposed by the police after insurgents launched first of all, it's understood, a suicide bomb attack against a police target in Mosul, followed by other explosions against police targets in other parts of the city.

Also, a police attack in Baqubah, northeast of the capital, one of the scenes of the most severe clashes this day involving U.S. troops. Now, it began in Baqubah just after dawn when a patrol from the U.S. 1st Infantry Division came under attack from insurgents thought to be loyal to the wanted al Qaeda terror suspect, Abu Musab al-Zarqawi. Two U.S. soldiers lost their lives in that attack.

Following on from that, insurgents launched strikes against police targets in Baqubah and against an administration building using rocket-propelled grenades, AK-47 assault rifles, and mortars.

Same sort of thing happened, less casualties, in Ramadi, to the west of Baghdad. People killed there, others injured. We don't have an overall precise figure of casualties, but certainly dozens are dead and at least 170-plus injured, most of them, again, Iraqi civilians.

Now, also while that was going on, Carol, parallel hostilities in Fallujah, really the hotbed of violence against the U.S.-led coalition in what's known as the Sunni Triangle. And in Fallujah, the U.S. called in an airstrike, dropped 400-500 pound precision bombs, aimed at suppressing fire from houses in Fallujah -- Carol.

COSTELLO: Brent, this idea of martial law has already been floated. Is this a time to impose it?

SADLER: It's too early to say what the transitional government is going to do. Certainly, 14 ministries are having power really handed over to them this day behind closed doors by the CPA, the Coalition Provisional Authority, who won't officially come into effect until June the 30th. But certainly we're seeing, as expected, an upsurge in violence. The U.S. coalition says that aside from Baqubah and Fallujah, most of what's happened in those other cities this day has been suppressed.

But certainly it gives you an idea of the kind of confrontation, the kind of violence and the kind of coordination insurgents can launch against the U.S.-led coalition and against the emergency security forces that the Iraqis are trying to put together at this critical time -- Carol.

COSTELLO: Brent Sadler live in Baghdad, thank you.

Another explosion to tell you about. Just two days before President Bush's trip to Turkey, a bomb explodes in front of the Hilton Hotel in Ankara, and that's where the president had been expected to stay.

CNN's Alphonso Van Marsh joins us live from Ankara by phone. He has more details for us now. Tell us -- Alphonso.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: That's right. We understand that there are two injuries after a small bomb went off this morning in front of the Ankara Hilton, as you mentioned. That's where we expect U.S. President George W. Bush to be standing for talks with Turkish leaders.

We understand that one police officer was injured, his heel and his knee unfortunately blown off when that explosion took place. We understand that hotel authorities alerted police to a suspicious package and a car parked just a few meters or feet away from the hotel. Police came in. They gave a look, and that's when the package went off, shattering windows nearby. And like I said, two injured -- Carol.

COSTELLO: Well, you know, the disturbing part of this is the president, President Bush, is expected there in just two days. Surely they've been working on intense security in the weeks before the president's pending visit.

VAN MARSH: Well, that's true. Turkish officials have been keen to let the world know that they've deployed more than 25,000 security forces to help protect this country ahead of the NATO summit that will be held in Istanbul next week. The U.S. president is one of some 45 world leaders expected to attend the summit. This comes as a serious embarrassment for Turkish officials, who have said that they have done everything they can to make this country safe.

COSTELLO: Alphonso Van Marsh reporting live by phone from Ankara, Turkey, this morning. Thank you.

Detectives are scheduled to take the stand this morning in Scott Peterson's murder trial, but a little drama played out yesterday. A juror was kicked off the jury, but it did not result in a mistrial as asked.

CNN's Rusty Dornin is in Redwood City, California.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): This was the encounter that started it all. Brent Rocha, Laci Peterson's brother, had a very brief conversation with juror No. 5 last week after going through security. According to court transcripts, what he said was, "You're not going to be on the news today." To many, it sounded like, "You're going to lose today." That started a furor about possible misconduct.

On Monday, the judge ruled there was no problem. But on Wednesday, things changed. After three hours behind closed doors, the judge announced that juror No. 5 had been removed. Moments later, 28- year-old Justin Falconer stepped in front of the microphones.

JUSTIN FALCONER, DISMISSED JUROR: Because of the attention that I was getting, he didn't -- he felt like it was too much of a distraction.

DORNIN: But some court observers believe there was more to it than that.

MICHAEL CARDOZA, LEGAL ANALYST: It's much more than that. Because that was past, that was gone. This trial would have moved on had something else not have happened.

DORNIN: Falconer, an airport screener, says he thought prosecutors were doing a poor job of presenting their case. If he had to vote in the jury room today, he knew what his verdict would be.

FALCONER: Oh, he'd be innocent. The prosecution hasn't shown us any reason to believe otherwise.

DORNIN: As if to underscore that point, defense attorney Mark Geragos jumped up after the juror was excused and asked for a mistrial. The motion was denied.

(on camera): Asked the same question several times by reporters, Falconer refused to say how he thought other jurors might vote. In his place, alternate No. 1, a middle-aged man who is both a doctor and a lawyer.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: This is going to sound familiar to you. Several investigations have now been launched into the videotaped beating of a suspect by Los Angeles police. In the tape, the suspected car thief appears to surrender after being chased down by police. You see him there. And then you're going to see the suspect being allegedly hit with a flashlight some 11 times.

Now, this incident comes just one week after the LAPD insisted that reforms had been put into place after a critical civil rights review.

(BEGIN VIDEO CLIP)

MAYOR JAMES HAHN, LOS ANGELES: What I saw jeopardizes the work that we have done to try to build that bond of trust between the department and the community. The only way that we can reach our goal of making this the safest city in America is to have that bond of trust. Now, today that bond of trust is going to be tested.

(END VIDEO CLIP)

COSTELLO: The FBI has also launched its own investigation into the incident. The LAPD, by the way, will hold a news conference later today to address the actions by the officers. Of course, we'll be covering that.

Here are some other stories making headlines across America this Thursday. Detroit police are looking for a suspect who opened fire into a crowd during a fireworks display at a downtown festival. Eight people were wounded. Some of them are in critical condition this morning. Police say they're not sure if the shooting was random or if the suspect knew one or more of the victims.

A missing Oregon teenager was found in Tennessee more than nine months after her disappearance. Sixteen-year-old Michelle Smith was living with her 39-year-old former softball coach. Andrew Garver had fled an FBI investigation in Oregon. Garver told police his real identity during the investigation of a minor traffic incident.

Americans are chasing the sun. The Census Bureau says people are flooding out of older industrial cities and moving to the southwest. Detroit was the biggest population loser with Cincinnati, Ohio, not far behind. The Las Vegas and Phoenix suburbs are taking in the most pioneers. Analysts say jobs are the big draw.

Still to come on DAYBREAK, spamming, is it an inside job? An Internet crackdown to tell you about.

And then, why Americans need to be concerned about what the Chinese are selling.

Plus, the future of space exploration. What will NASA's role be in the -- will be now that the private -- let me do that over again. What will NASA's role be now that private space flight is possible? We'll explore that issue.

And eating disorders are not exclusively for the skinny. What's behind overeating and obesity?

This is DAYBREAK for June 24.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:13 Eastern. Here's what's all new this morning.

Near simultaneous insurgent attacks in several Iraqi cities; Baghdad, Baqubah, Mosul and Ramadi among them. Three U.S. soldiers are reportedly killed. Heavy fighting is still reported this morning between U.S. troops and insurgents in Fallujah.

Day two of the six-nation talks on North Korea's nuclear program. The U.S. is offering the North Koreans a package of energy help and security guarantees if it will end its nuclear weapons program.

In money news, AT&T, the biggest U.S. long distance carrier, says it will stop seeking new local and long distance customers in seven states. The firm cites a recent ruling by a federal appeals court.

In culture, six rabbis in California have sent Governor Arnold Schwarzenegger a letter. They're objecting to a proposal to put special identifiers on driver's licenses for illegal immigrants. And in sports, the Tampa Bay Devil Rays' winning streak stopped at an even dozen last night when Toronto beat them 2-1. It was Tampa Bay's first loss since June 8, but I'm sure Lou Piniella is still very, very happy.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

And hey, Chad, did you know the Sunshine State isn't really the Sunshine State?

CHAD MYERS, CNN METEOROLOGIST: It's the stormy state.

COSTELLO: It's the stormy state.

MYERS: It's the lightning state, too.

COSTELLO: Actually, Arizona is the sunniest state, followed by California and Nevada. That's according to the National Weather Service. But you knew that, Chad.

MYERS: Well, I did.

COSTELLO: Florida is only sixth as far as the sun goes. But they are No. 1 when it comes to partly cloudy days.

MYERS: How about partly sunny?

COSTELLO: That's better. I like that so much better.

If you're looking for warm weather, southern Florida is the best place to be. Oh, I wish I were there now.

It's time for a little business buzz. Ninety-two million AOL screen names have been sold to a spammer.

Carrie Lee has more on that live from the Nasdaq Marketsite.

Ooh, it might have been an inside job.

CARRIE LEE, CNN FINANCIAL NEWS: It definitely was, Carol. In fact, a software engineer working for America Online in West Virginia was arrested yesterday. He was charged with stealing 92 million AOL customer account screen names, and then selling that list to a guy in Las Vegas for $100,000, who runs an online gambling site; this, according to federal prosecutors in New York. That Las Vegas man then sold the list to other spammers for $52,000.

So, a lot of names circulating. No indication that passwords or credit card information was compromises.

Of course, AOL has a statement here saying that they are reviewing and strengthening their internal procedures. AOL is also saying the employee has been fired from the company. The two men each face a maximum sentence of five years in prison and a fine of $250,000. AOL is owned by our parent company, Time Warner, of course.

Carol -- back to you.

COSTELLO: A quick look at the futures.

LEE: Things are looking pretty flat. Techs are looking a little bit weak. We did see some pretty decent buying yesterday at the close. The Nasdaq up over 1 percent. Bed, Bath & Beyond, the stock to watch, down in the after-hours session, despite profits up 43 percent in the recent quarter year-over-year.

Carol -- back to you.

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

"Made in China" -- we've all seen that phrase on products. We'll hear what America's labor leaders are doing in Beijing this morning to help make the trade relationship a bit more balanced.

And the business of basketball, major picking and choosing takes place tonight. We'll give you a preview of the big players.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Two U.S. cabinet members, Commerce Secretary Don Evans and Labor Secretary Elaine Chao, are in Beijing this morning to talk trade with Chinese officials. Their visit comes amidst increasing criticism of Washington's trade policy with China.

Our bureau chief, Jaime Florcruz, live in Beijing to tell us how the talks are going.

Good morning.

JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: Good morning, Carol.

Yes, Secretary Evans and Secretary Chao are double-teaming the Chinese in Beijing, pressing for more trade concessions. Their biggest complaint is a one-market access. They hope that the Chinese will open the Chinese market to U.S. businesses and have a level playing field by stopping any tariffs or subsidies for the Chinese businesses and industries.

They also hope that the Chinese will stop the piracy of intellectual property rights, meaning the DVDs, the fake DVDs and computer software that we can get so easily out in the street. In fact, even the chewing gums are also pirated here, a very thicket issue -- Carol.

COSTELLO: Even the chewing gum? Like, what kind of chewing gum can you get on the streets of China?

FLORCRUZ: Well, all sorts of chewing gums. Also, Budweiser -- also some fake Budweiser are also available out on the street. There are some shops here and some coffee shops which carry logos which look very similar to the Starbucks, another source of complaint from the U.S. businesses in China.

COSTELLO: Fascinating. You know, critics blame China's unfair trade practices for the record high trade deficits. Some, what, $125 billion? So, what does the U.S. want China to do? And what is China's take on the issue?

FLORCRUZ: Well, the Chinese argue that the trade imbalance was due to the fact that the U.S. businesses refused to sell them big- ticket items, which fall into the category of high-tech. There are still sanctions imposed in China which are in play. So, that's their complaint.

But the Americans are saying that the biggest source of this trade imbalance is that, one, there is no level playing field for U.S. businesses; and, two, this huge piracy issue, which is costing U.S. businesses billions of dollars -- Carol.

COSTELLO: Jaime, also some say China's unfair labor practices are stealing jobs away from America. Given it's an election year, have they gotten any concession from Beijing in this regard?

FLORCRUZ: Well, the Chinese are giving them the chance to show that the U.S. businesses can play a positive role in China by applying the labor codes, the labor codes that are practiced in the U.S. So, they just signed several agreements this time with Labor Secretary Elaine Chao in Beijing, assuring that the Chinese will accept these labor codes, as well as also accept U.S. assistance in the training of the implementation of these labor codes.

The U.S. is also pressing the Chinese to adopt a flexible currency exchange. They think that the Chinese are enjoying unfair trade advantage because of the peg Chinese currency. And they think that the Chinese currency now is seriously undervalued. So, they want the Chinese to revalue their currency -- Carol.

COSTELLO: Jaime Florcruz reporting live from Beijing. Thank you, Jaime.

Here's what's all new in the next half-hour of DAYBREAK. We're going to talk to a terror expert about those coordinated attacks in Iraq this morning.

And then, the future of the space program. Major changes are to be announced today. We'll talk with a NASA insider.

And then, skinny is to anorexia as fat is to another eating disorder: obesity. So, why don't we treat big people like they have a disease, too? We'll explore that issue when DAYBREAK returns.

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 24, 2004 - 06:00   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. Let me bring you up to date. There is a lot happening this morning.
Insurgents have launched a series of coordinated attacks against targets in several Iraqi cities. This has been going on overnight. Dozens have been killed, including three American soldiers.

An explosion at a hotel in Ankara, Turkey; this happened about three hours ago. A small bomb went off near the hotel, which is a likely stopping point for President Bush's trip to Turkey this weekend. Two police officers were wounded.

Eight British troops who were being held in Iran are now in the custody of British officials. The six marines and two sailors had been detained since crossing into Iranian waters on Monday.

In money news, spammer or slammer? Two men, including one AOL employee, were arrested for allegedly stealing and selling 92 million AOL screen names. The list was sold to e-mail spammers.

In culture, President Bush honored 13 individuals with the Presidential Medal of Freedom. Among the recipients: Arnold Palmer, Rita Marino and Pope John Paul, II.

In sports, the annual NBA draft picks plays tonight. The Orlando Magic has the first pick and is expected to choose either high school phenom Dwight Howard or University of Connecticut star Emeka Okafor.

(WEATHER BREAK)

COSTELLO: Six days to go, and it has not been a good morning in Iraq -- a series of simultaneous attacks in Mosul, in Baqubah, in Ramadi, in Fallujah, in Baghdad. There are a number of people dead, including U.S. troops.

Let's take you live to Baghdad now and Brent Sadler to bring us up to date.

Hello -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Hello. Good morning, Carol.

A series of assaults against primarily Iraqi police stations in all of those cities. Let's start first of all in Mosul to the north of the capital, Baghdad. A U.S. soldier was killed in one of a series of blasts that hit that city. A dawn to dusk curfew has been imposed by the police after insurgents launched first of all, it's understood, a suicide bomb attack against a police target in Mosul, followed by other explosions against police targets in other parts of the city.

Also, a police attack in Baqubah, northeast of the capital, one of the scenes of the most severe clashes this day involving U.S. troops. Now, it began in Baqubah just after dawn when a patrol from the U.S. 1st Infantry Division came under attack from insurgents thought to be loyal to the wanted al Qaeda terror suspect, Abu Musab al-Zarqawi. Two U.S. soldiers lost their lives in that attack.

Following on from that, insurgents launched strikes against police targets in Baqubah and against an administration building using rocket-propelled grenades, AK-47 assault rifles, and mortars.

Same sort of thing happened, less casualties, in Ramadi, to the west of Baghdad. People killed there, others injured. We don't have an overall precise figure of casualties, but certainly dozens are dead and at least 170-plus injured, most of them, again, Iraqi civilians.

Now, also while that was going on, Carol, parallel hostilities in Fallujah, really the hotbed of violence against the U.S.-led coalition in what's known as the Sunni Triangle. And in Fallujah, the U.S. called in an airstrike, dropped 400-500 pound precision bombs, aimed at suppressing fire from houses in Fallujah -- Carol.

COSTELLO: Brent, this idea of martial law has already been floated. Is this a time to impose it?

SADLER: It's too early to say what the transitional government is going to do. Certainly, 14 ministries are having power really handed over to them this day behind closed doors by the CPA, the Coalition Provisional Authority, who won't officially come into effect until June the 30th. But certainly we're seeing, as expected, an upsurge in violence. The U.S. coalition says that aside from Baqubah and Fallujah, most of what's happened in those other cities this day has been suppressed.

But certainly it gives you an idea of the kind of confrontation, the kind of violence and the kind of coordination insurgents can launch against the U.S.-led coalition and against the emergency security forces that the Iraqis are trying to put together at this critical time -- Carol.

COSTELLO: Brent Sadler live in Baghdad, thank you.

Another explosion to tell you about. Just two days before President Bush's trip to Turkey, a bomb explodes in front of the Hilton Hotel in Ankara, and that's where the president had been expected to stay.

CNN's Alphonso Van Marsh joins us live from Ankara by phone. He has more details for us now. Tell us -- Alphonso.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: That's right. We understand that there are two injuries after a small bomb went off this morning in front of the Ankara Hilton, as you mentioned. That's where we expect U.S. President George W. Bush to be standing for talks with Turkish leaders.

We understand that one police officer was injured, his heel and his knee unfortunately blown off when that explosion took place. We understand that hotel authorities alerted police to a suspicious package and a car parked just a few meters or feet away from the hotel. Police came in. They gave a look, and that's when the package went off, shattering windows nearby. And like I said, two injured -- Carol.

COSTELLO: Well, you know, the disturbing part of this is the president, President Bush, is expected there in just two days. Surely they've been working on intense security in the weeks before the president's pending visit.

VAN MARSH: Well, that's true. Turkish officials have been keen to let the world know that they've deployed more than 25,000 security forces to help protect this country ahead of the NATO summit that will be held in Istanbul next week. The U.S. president is one of some 45 world leaders expected to attend the summit. This comes as a serious embarrassment for Turkish officials, who have said that they have done everything they can to make this country safe.

COSTELLO: Alphonso Van Marsh reporting live by phone from Ankara, Turkey, this morning. Thank you.

Detectives are scheduled to take the stand this morning in Scott Peterson's murder trial, but a little drama played out yesterday. A juror was kicked off the jury, but it did not result in a mistrial as asked.

CNN's Rusty Dornin is in Redwood City, California.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): This was the encounter that started it all. Brent Rocha, Laci Peterson's brother, had a very brief conversation with juror No. 5 last week after going through security. According to court transcripts, what he said was, "You're not going to be on the news today." To many, it sounded like, "You're going to lose today." That started a furor about possible misconduct.

On Monday, the judge ruled there was no problem. But on Wednesday, things changed. After three hours behind closed doors, the judge announced that juror No. 5 had been removed. Moments later, 28- year-old Justin Falconer stepped in front of the microphones.

JUSTIN FALCONER, DISMISSED JUROR: Because of the attention that I was getting, he didn't -- he felt like it was too much of a distraction.

DORNIN: But some court observers believe there was more to it than that.

MICHAEL CARDOZA, LEGAL ANALYST: It's much more than that. Because that was past, that was gone. This trial would have moved on had something else not have happened.

DORNIN: Falconer, an airport screener, says he thought prosecutors were doing a poor job of presenting their case. If he had to vote in the jury room today, he knew what his verdict would be.

FALCONER: Oh, he'd be innocent. The prosecution hasn't shown us any reason to believe otherwise.

DORNIN: As if to underscore that point, defense attorney Mark Geragos jumped up after the juror was excused and asked for a mistrial. The motion was denied.

(on camera): Asked the same question several times by reporters, Falconer refused to say how he thought other jurors might vote. In his place, alternate No. 1, a middle-aged man who is both a doctor and a lawyer.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: This is going to sound familiar to you. Several investigations have now been launched into the videotaped beating of a suspect by Los Angeles police. In the tape, the suspected car thief appears to surrender after being chased down by police. You see him there. And then you're going to see the suspect being allegedly hit with a flashlight some 11 times.

Now, this incident comes just one week after the LAPD insisted that reforms had been put into place after a critical civil rights review.

(BEGIN VIDEO CLIP)

MAYOR JAMES HAHN, LOS ANGELES: What I saw jeopardizes the work that we have done to try to build that bond of trust between the department and the community. The only way that we can reach our goal of making this the safest city in America is to have that bond of trust. Now, today that bond of trust is going to be tested.

(END VIDEO CLIP)

COSTELLO: The FBI has also launched its own investigation into the incident. The LAPD, by the way, will hold a news conference later today to address the actions by the officers. Of course, we'll be covering that.

Here are some other stories making headlines across America this Thursday. Detroit police are looking for a suspect who opened fire into a crowd during a fireworks display at a downtown festival. Eight people were wounded. Some of them are in critical condition this morning. Police say they're not sure if the shooting was random or if the suspect knew one or more of the victims.

A missing Oregon teenager was found in Tennessee more than nine months after her disappearance. Sixteen-year-old Michelle Smith was living with her 39-year-old former softball coach. Andrew Garver had fled an FBI investigation in Oregon. Garver told police his real identity during the investigation of a minor traffic incident.

Americans are chasing the sun. The Census Bureau says people are flooding out of older industrial cities and moving to the southwest. Detroit was the biggest population loser with Cincinnati, Ohio, not far behind. The Las Vegas and Phoenix suburbs are taking in the most pioneers. Analysts say jobs are the big draw.

Still to come on DAYBREAK, spamming, is it an inside job? An Internet crackdown to tell you about.

And then, why Americans need to be concerned about what the Chinese are selling.

Plus, the future of space exploration. What will NASA's role be in the -- will be now that the private -- let me do that over again. What will NASA's role be now that private space flight is possible? We'll explore that issue.

And eating disorders are not exclusively for the skinny. What's behind overeating and obesity?

This is DAYBREAK for June 24.

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports. It is 6:13 Eastern. Here's what's all new this morning.

Near simultaneous insurgent attacks in several Iraqi cities; Baghdad, Baqubah, Mosul and Ramadi among them. Three U.S. soldiers are reportedly killed. Heavy fighting is still reported this morning between U.S. troops and insurgents in Fallujah.

Day two of the six-nation talks on North Korea's nuclear program. The U.S. is offering the North Koreans a package of energy help and security guarantees if it will end its nuclear weapons program.

In money news, AT&T, the biggest U.S. long distance carrier, says it will stop seeking new local and long distance customers in seven states. The firm cites a recent ruling by a federal appeals court.

In culture, six rabbis in California have sent Governor Arnold Schwarzenegger a letter. They're objecting to a proposal to put special identifiers on driver's licenses for illegal immigrants. And in sports, the Tampa Bay Devil Rays' winning streak stopped at an even dozen last night when Toronto beat them 2-1. It was Tampa Bay's first loss since June 8, but I'm sure Lou Piniella is still very, very happy.

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you.

And hey, Chad, did you know the Sunshine State isn't really the Sunshine State?

CHAD MYERS, CNN METEOROLOGIST: It's the stormy state.

COSTELLO: It's the stormy state.

MYERS: It's the lightning state, too.

COSTELLO: Actually, Arizona is the sunniest state, followed by California and Nevada. That's according to the National Weather Service. But you knew that, Chad.

MYERS: Well, I did.

COSTELLO: Florida is only sixth as far as the sun goes. But they are No. 1 when it comes to partly cloudy days.

MYERS: How about partly sunny?

COSTELLO: That's better. I like that so much better.

If you're looking for warm weather, southern Florida is the best place to be. Oh, I wish I were there now.

It's time for a little business buzz. Ninety-two million AOL screen names have been sold to a spammer.

Carrie Lee has more on that live from the Nasdaq Marketsite.

Ooh, it might have been an inside job.

CARRIE LEE, CNN FINANCIAL NEWS: It definitely was, Carol. In fact, a software engineer working for America Online in West Virginia was arrested yesterday. He was charged with stealing 92 million AOL customer account screen names, and then selling that list to a guy in Las Vegas for $100,000, who runs an online gambling site; this, according to federal prosecutors in New York. That Las Vegas man then sold the list to other spammers for $52,000.

So, a lot of names circulating. No indication that passwords or credit card information was compromises.

Of course, AOL has a statement here saying that they are reviewing and strengthening their internal procedures. AOL is also saying the employee has been fired from the company. The two men each face a maximum sentence of five years in prison and a fine of $250,000. AOL is owned by our parent company, Time Warner, of course.

Carol -- back to you.

COSTELLO: A quick look at the futures.

LEE: Things are looking pretty flat. Techs are looking a little bit weak. We did see some pretty decent buying yesterday at the close. The Nasdaq up over 1 percent. Bed, Bath & Beyond, the stock to watch, down in the after-hours session, despite profits up 43 percent in the recent quarter year-over-year.

Carol -- back to you.

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

"Made in China" -- we've all seen that phrase on products. We'll hear what America's labor leaders are doing in Beijing this morning to help make the trade relationship a bit more balanced.

And the business of basketball, major picking and choosing takes place tonight. We'll give you a preview of the big players.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Two U.S. cabinet members, Commerce Secretary Don Evans and Labor Secretary Elaine Chao, are in Beijing this morning to talk trade with Chinese officials. Their visit comes amidst increasing criticism of Washington's trade policy with China.

Our bureau chief, Jaime Florcruz, live in Beijing to tell us how the talks are going.

Good morning.

JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: Good morning, Carol.

Yes, Secretary Evans and Secretary Chao are double-teaming the Chinese in Beijing, pressing for more trade concessions. Their biggest complaint is a one-market access. They hope that the Chinese will open the Chinese market to U.S. businesses and have a level playing field by stopping any tariffs or subsidies for the Chinese businesses and industries.

They also hope that the Chinese will stop the piracy of intellectual property rights, meaning the DVDs, the fake DVDs and computer software that we can get so easily out in the street. In fact, even the chewing gums are also pirated here, a very thicket issue -- Carol.

COSTELLO: Even the chewing gum? Like, what kind of chewing gum can you get on the streets of China?

FLORCRUZ: Well, all sorts of chewing gums. Also, Budweiser -- also some fake Budweiser are also available out on the street. There are some shops here and some coffee shops which carry logos which look very similar to the Starbucks, another source of complaint from the U.S. businesses in China.

COSTELLO: Fascinating. You know, critics blame China's unfair trade practices for the record high trade deficits. Some, what, $125 billion? So, what does the U.S. want China to do? And what is China's take on the issue?

FLORCRUZ: Well, the Chinese argue that the trade imbalance was due to the fact that the U.S. businesses refused to sell them big- ticket items, which fall into the category of high-tech. There are still sanctions imposed in China which are in play. So, that's their complaint.

But the Americans are saying that the biggest source of this trade imbalance is that, one, there is no level playing field for U.S. businesses; and, two, this huge piracy issue, which is costing U.S. businesses billions of dollars -- Carol.

COSTELLO: Jaime, also some say China's unfair labor practices are stealing jobs away from America. Given it's an election year, have they gotten any concession from Beijing in this regard?

FLORCRUZ: Well, the Chinese are giving them the chance to show that the U.S. businesses can play a positive role in China by applying the labor codes, the labor codes that are practiced in the U.S. So, they just signed several agreements this time with Labor Secretary Elaine Chao in Beijing, assuring that the Chinese will accept these labor codes, as well as also accept U.S. assistance in the training of the implementation of these labor codes.

The U.S. is also pressing the Chinese to adopt a flexible currency exchange. They think that the Chinese are enjoying unfair trade advantage because of the peg Chinese currency. And they think that the Chinese currency now is seriously undervalued. So, they want the Chinese to revalue their currency -- Carol.

COSTELLO: Jaime Florcruz reporting live from Beijing. Thank you, Jaime.

Here's what's all new in the next half-hour of DAYBREAK. We're going to talk to a terror expert about those coordinated attacks in Iraq this morning.

And then, the future of the space program. Major changes are to be announced today. We'll talk with a NASA insider.

And then, skinny is to anorexia as fat is to another eating disorder: obesity. So, why don't we treat big people like they have a disease, too? We'll explore that issue when DAYBREAK returns.

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