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CNN Live At Daybreak

Bush Heads to Ireland for U.S.-EU Summit; Protests Expected

Aired June 25, 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: The sounds of war in Iraq; fighting in Fallujah.
It is Friday, June 25. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date right now.

President Bush heads to Ireland today for a Saturday summit with leaders of the European Union. The president will then travel to the NATO summit in Turkey.

Sources tell CNN that Florida Congressman Porter Goss may soon be the president's choice for CIA director. Goss, a Republican, is chairman of the House Intelligence Committee. George Tenet resigned as CIA director, effective in mid-July.

At least 90 people are dead this morning following a tragic crash in southeastern Iran. Another 114 people were injured. It happened when a gas truck hit six passenger buses that were stopped at a police inspection site. Many of the dead are women and children.

In money news, Congress is looking at billing practices of the nation's hospitals. Experts say uninsured patients are charged as much four times more than those with insurance, and are also subject to more severe collection techniques.

In culture, there's plenty to do in Denver when you're single. Forbes lists the Denver-Boulder area as the place - as the best place to be unattached. The Baltimore-Washington area is ranked second, just ahead of Austin, Texas. Pittsburgh comes in last.

(LAUGHTER)

In sports, Venus Williams is the first major upset at the all- England club. Williams lost in straight sets to 30th-ranked Karolina Sprem. It's Venus' earliest exit from Wimbledon since 1997 - Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

Back on Wednesday, had some severe weather across parts of Wisconsin. Here's the aftermath, pictures yesterday, some aerials there from our affiliate WTMJ. They are still picking up the pieces. One person did lose his life, found in a cornfield after his home was destroyed. That's the power of this thing. Also picked up semis, threw them around as well. So don't really know yet what the value of this storm, what F-scale it was. But I'm sure we'll find out soon. (WEATHER REPORT)

COSTELLO: Two summit meetings in five days. That's President Bush's schedule as leaves this morning for Shannon, Ireland. In Shannon, the president will meet tomorrow with the European Commission, which is the executive arm of the European Union. And then President Bush flies to Ankara, Turkey, to meet with the Turkish president and prime minister. And from there, he'll go on to Istanbul for the NATO summit meeting that opens on Monday.

And as I just told you, in advance of his arrival in Ireland, President Bush appeared on Irish television, telling an interview - telling an interviewer that the world is now a safer place. The president talked about Iraq, about the Israeli-Palestinian conflict and about terrorism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I do believe the world is a safer place and becoming a safer place. I know that a free Iraq is going to be a necessary part of changing the world. Listen, people - people join terrorist organizations because there's no hope and there's no chance to raise their families in a - in a - in a peaceful world where there is not freedom. And so the idea to promote freedom, and at the same time protect our security. And I do believe the world is becoming a better place, absolutely.

(END VIDEO CLIP)

COSTELLO: Four thousand police officers and 2,000 troops will be on patrol in Shannon, Ireland, to control expected demonstrations.

And although you didn't see it from that interview, the president's interview with that Irish interviewer was quite contentious at times. Want to talk more about that with our senior international editor, David Clinch.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Yes. Good morning, Carol.

It was a little bit testy. There were a couple things, though, that we should say about that. There's a different interviewing style I would say in Ireland and Britain than perhaps President Bush is used to here. The interviewer interrupting him a couple of times. That definitely bothered him.

But on the other hand, he was also clearly upset by some of the lines of questioning and some of the questioning of what he was saying about Iraq and the war on terror. Specifically, in defending his administration's actions in Iraq and the war on terror. He mentioned the fact that, in his view, most of Europe had supported his action in Iraq. Now, from an Irish point of view and from many people's point of view in Europe, that was not the case and perhaps still is not the case.

And so the front page of the Irish papers this morning making a point of his comment in that regard. Not exactly slamming him for that, but definitely making a point that his point of view is in some ways different from the reality on the ground. There is - there is not a great welcome awaiting President Bush in Ireland today.

You can see that is the front page of the paper there today as well. On the right-hand side, pictures of a line of tanks heading off -- probably the entire Irish army heading off down to the castle where he, President Bush, and the other European leaders will be staying for this summit on Saturday. Security is a big issue, not just because of terror threats, of which there are none specific that we know of, but also, as we were saying about the welcome that he is likely to receive there, the definite prospect of anti-Bush demonstrations.

COSTELLO: And those demonstrations are supposed to be quite large, aren't they?

CLINCH: Yes, well, the people organizing them hope they will be. There are some demonstrations planned for the capital, Dublin, which is a long way away from where he will be today. And then around the time of the summit meeting Saturday in this luxurious hotel out in the west of Ireland. This is all making me very homesick here, seeing these beautiful pictures.

But there are planned demonstrations. We'll see how big they are.

One of the key things, though: This is about the image of President Bush and how he can persuade people. In this interview last night, he made one of those gaffes that he makes occasionally - I don't know if we can listen to the sound - where he commented about the growth of democracy around the world, if we can listen to that soundbite. I'm sorry, I'm told we don't have it.

Nevertheless...

(CROSSTALK)

CLINCH: He was talking about growth of democracy in the Middle East and beyond and talking about democracy growing in Afghanistan, and mentioned the fact that there is a democracy in Pakistan. Well, I think many people in Pakistan and beyond would argue that the military in control of the country does not equate to a democracy.

It may have been a misstatement. Who knows? But the point is, it plays into this unfortunate image that President Bush has for many people in Europe - not all, but some people, at least in Europe - that he is prone to gaffes and also perhaps out of touch in some ways.

In his statement about the support from most of Europe, out-of- touch with the people - with the way people view him there. So he has an image problem, but really it's about support: political and military support in Iraq, the war on terror and beyond. And he has quite a mountain to climb tomorrow at the summit. The Irish prime minister, Bertie Ahearn, in a key role as head of the EU right now, playing a very important role trying to bring everybody there together. COSTELLO: Well, we'll see if it works. Thank you. David Clinch.

Five days and counting until the handover of sovereignty in Iraq. Here is the latest in our situation report this morning.

The Senate Armed Services Committee will hold a hearing on the transition of power in Iraq. Deputy Defense Secretary Paul Wolfowitz and Joint Chiefs of Staff chairman, General Richard Myers, will testify.

More American troops may be deployed to Iraq. U.S. military planners are preparing to send possibly as many as 15,000 additional ground forces to Iraq if violence there increases.

Already this morning were (ph) new clashes that (ph) broken out between insurgents and U.S. forces in Fallujah. Explosions were heard outside of that rebel stronghold.

And U.S. troops are tightening their security ring around Baghdad. It follows a day of carnage across the country.

We take you live to Baghdad now and Brent Sadler to talk about the day after.

Hello, Brent.

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

Yes, indeed, the air around Baghdad is thick with tension after the attacks 24 hours ago in five major Iraqi cities, from Mosul in the north, to Baqubah, Ramadi, as well as Baghdad and Fallujah as well.

Now what did this mean? It did mean a significant departure in the kind of hit-and-run tactics we've seen as late - of late. As well as the suicide bombings that destroyed police stations, most of the attacks were aimed at destroying and intimidating the Iraqi security authorities that are supposed to take more responsibility for security after the June the 30th handover.

We also saw the insurgents coordinating to some extent their attacks. And in Baqubah, in particular, one of the heaviest places where there were clashes between insurgents and U.S. forces, we did see insurgents attempting to stockpile weapons and to hold ground. And that's why the United States military called in heavy support, pushing in armor and calling up airstrikes to knock out those insurgent strongholds.

In Fallujah today, a much quieter situation. There has been some loss of life overnight in terms of the Iraqis. Nothing from the U.S. side. Three U.S. soldiers killed 24 hours ago in that intense action. Fallujah much quieter, but certainly atmosphere in and around Baghdad tense. Security firms here warning foreign workers to not set foot outside their compounds, as they expect the possibility of a major offensive in these coming days before the handover to Iraqi sovereignty - Carol. COSTELLO: Brent Sadler, live in Baghdad this morning, thank you.

The latest poll numbers do not bode well for what President Bush once called "a war of necessity." A new CNN/USA Today/Gallup poll shows a majority of Americans, 54 percent, say it was a mistake to send troops to Iraq. That's up from 41 percent earlier this month. It's the first time since the war that a majority have expressed this negative view. And 55 percent of Americans now say that the war with the Iraq has not made the U.S. safer from terrorism. That's a significant shift from last December, just after the capture of Saddam Hussein.

Later today, we conclude our weeklong series with "TAKING THE AMERICAN PULSE." Jonathan Mann holds a live town hall meeting with a panel of guests who have tried to influence public opinion about the U.S. role in Iraq and the Middle East. A studio audience will include military families and peace activists. You can see it 1 p.m. Eastern, 10 a.m. Pacific right here on CNN.

I'm going to have to take a pause for a second because I have to cough. So I'm going to take a drink of my coffee.

Thank you. I apologize.

Here are some stories making news "Across America" this Friday.

Eight Los Angles police officers involved in the beating of a suspect during his arrest have been taken off the street and placed behind desks. Among those under investigation is John Hatfield. He's been identified as the officer who repeatedly hit the suspect with a flashlight. Police Chief William Bratton says it appears the officers acted inappropriately, and L.A. Mayor Jim Hahn says any officers who acted unlawfully will be prosecuted.

Todd Bertuzzi of the Vancouver Canucks is being charged with assault fort his vicious hit on the Colorado Avalanche's Steve Moore. Bertuzzi broke Moore's neck when he hit him from behind in a game back in March. He's expected to appear in court on July 9 to answer the charge. Bertuzzi remains under an indefinite suspension by the NHL.

And charges are expected to be filed this morning in the shooting of nine people at a crowded a fireworks festival in downtown Detroit. Two of the victims remain in critical condition this morning. Police say they got a flood of tips from the public, which led them to a suspect in the shooting.

There's much more ahead for you on CNN's DAYBREAK.

A detective does the defense a big favor in the Scott Peterson double-murder trial.

We'll get a live report on a horrific accident in Iran after a tanker truck full of gasoline careens out of control.

And some lawyers are livid after supposedly secret testimony gets leaked about steroid use by some top American athletes. This is DAYBREAK for Friday.

(COMMERCIAL BREAK)

COSTELLO: Testimony causes trouble for prosecutors in the Scott Peterson trial. The credibility of their case was dealt a blow after admission by a lead detective.

CNN's Rusty Dornin has details from Redwood City, California.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): It's a key piece of the prosecution's theory: Laci Peterson never knew about or saw her husband Scott's boat, which was stored at his warehouse.

But on the stand, one of the lead detectives, Al Brocchini admitted he omitted part of an interview with a woman who claims Laci Peterson was at the warehouse and asked to use a restroom there on the day before she disappeared.

Some legal observers say the credibility of investigators may be the big issue here.

MICHAEL CARDOZA, LEGAL ANALYST: This is unbelievable. How is this jury going to believe one more thing any prosecution witness says in this case? He writes a police report from his dictation and leaves a major paragraph out?

DORNIN: The omission also plays into the defense theory that police zeroed in on Scott Peterson as the only suspect in the killing of his pregnant wife, ignoring leads that may have implicated others.

Defense attorney Mark Geragos also implied that the hair found in the pliers on the bottom of Scott Peterson's boat might have been left there by Laci during that visit. Prosecutors claim the only way the hair could be there is because Peterson ferried his wife's body out to San Francisco Bay after she was killed.

(on camera): Next week, prosecutors will have a chance to try and repair the damage by asking their own questions of Detective Al Brocchini. But not until defense attorney Mark Geragos has finished his cross-examination.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Your news, money, weather and sports. It is 5:16 Eastern. Here's what's all new this morning.

The U.S. and South Korea are playing down North Korea's threat to test a nuclear weapon. The North Koreans issued the warning at the six-nation talks on Pyongyang's nuclear program.

Ground controllers scrubbed a spacewalk outside the international space station when one of the astronauts' oxygen bottles sprung a leak. The crew will try again soon to replace a circuit breaker outside of the station.

In money news, the Nike swoosh beats the Street. The world's biggest athletic shoemaker posted a 23-percent surge in income for its fourth quarter. Nike easily did better than Wall Street expected.

In culture, some extremely encouraging news. More people than ever are surviving cancer. The CDC suggests health officials focus on long-term care of survivors. Since 1974, the number of cancer survivors in the U.S. - in the U.S. - in the United States has tripled.

In sports, Dwight Howard of Atlanta goes to the Orlando Magic as the No. 1 pick in the NBA draft. Howard is one of eight high school players chosen in the first round.

I think you were wrong about that one, Chad.

MYERS: Yes, that doesn't seem like a logical choice when you've got Okafor up there, who was just a powerhouse. But hey, you know what? You got to take who you got to take and who you can sign too.

(WEATHER REPORT)

COSTELLO: Those are the headlines for you.

Time now to check the overseas markets to see what Wall Street investors will wake up to. For that, we head live to London and Diana Muriel.

Good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning.

Well, European markets are flat to negative this Friday. This really following on from the declines that we saw on Wall Street on Thursday, in both the Dow Jones and the Nasdaq. Traders say in London, the mood is particularly depressed after the failure of England to go through in the Euro 2004 football championships - soccer championships in Portugal last night.

What is putting some strength into the market, though - in the Swiss market - is the surprise news from Credit Suisse that the co- CEO, John Mack, is to leave the group on July the 12th. His contract will not be renewed. The company has had two CEOs. Now the other one, the Swiss banker Oswald Gruebel will be taking over as the sole CEO of the group.

Whilst this announcement was being made, the company also said that it had no plans to merge with any other bank. There had been discussion in the market that this was a possibility.

John Mack, who was described as "Mack the Knife" for his cost- cutting program that he introduced into the bank when he joined it in 2001, was a surprise departure. He's responsible for reducing costs by $3 billion and by getting rid of about a third of the workforce.

Quick look at where we are with currencies. We're seeing the Swiss franc as a safe-haven currency. Some strength in that currency today.

Back to you.

COSTELLO: Diana Muriel live from London, thank you.

Former President Bill Clinton is sharing his life story and talking politics. In an interview with CNN's Larry King, Clinton says he'd like to do some campaigning for Senator John Kerry this summer.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I know John Kerry well, and I believe he would be a good president. I think he has a lot of good qualities, not just because he agrees with me, but psychologically he's well suited to be president.

He - he'd - not afraid to be around people who know more than he does about certain subjects. That's good. He's always trying to learn more and to do better. That's good. He won't punish people who sit in the Oval Office and look at him dead in the eye and say, Mr. President, I think you're wrong about this, I disagree. And that's good. Especially now.

(END VIDEO CLIP)

COSTELLO: Clinton's new autobiography, "My Life," has sold over half a million copies since its release on Tuesday.

Spotlight on film. "Fahrenheit 9/11" takes center stage, but other documentaries are also grabbing headlines. We'll show you who's standing up and taking notice.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to DAYBREAK.

"Fahrenheit 9/11," the award-winning and controversial Michael Moore documentary opened this week in New York to a packed house. "Fahrenheit" may be riding the crest of a documentary wave, as CNN's Jen Rogers reports from Hollywood.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT (voice-over): Most documentaries don't get a star-studded premiere like "Fahrenheit 9/11." But that could be changing, as Hollywood turns its attention to the often- ignored films.

PAUL DERGARABEDIAN, EXHIBITOR RELATIONS: I think we're going to see documentary film become the new hot genre. I don't think we're going to see them open with 20, $30 million, but who knows? With "Fahrenheit 9/11," it could potentially open with over $10 million in box office.

ROGERS: And that, in turn, could open the door for more documentaries to gain studio support. The key for Hollywood: the films are cheaper to make with new advance in technology, and moviegoers seem more willing to embrace non-fiction fare, as documentaries shed their image as boring, educational movies targeted to a narrow audience.

UNIDENTIFIED MALE: I love documentary because it's real-life event.

UNIDENTIFIED FEMALE: Usually, I hope to learn something.

ROGERS: Hollywood has learned recently that documentaries can be commercial as well as critical successes. Of the top five highest- grossing documentaries of all time, three have been released in the last 14 months: "Winged Migration," "Supersize Me," and "Tupac: Resurrection."

More than just informative, this new wave of films is sometimes funny, often controversial, but at its heart entertaining - the key to box-office success.

UNIDENTIFIED MALE: It's pretty clear that documentaries are growing in popularity.

ROGERS: Gregory Lamaly (ph) runs a 30-theater chain in Southern California.

UNIDENTIFIED MALE: The fact is, is that independent films in general are really booming right. So a lot of it does have to do with the accessibility of the screens.

ROGERS: Accessibility made possible by the multiplexing of America. With more theaters willing to give up a few screens to smaller films, profits have soared. In 1998, documentaries grossed $7.6 million at the U.S. box office. Last year, that number hit nearly $50 million.

(on camera): And that figure doesn't even take into account the home-video market, where many documentaries make up the bulk of their sales.

Jen Rogers, CNN Financial News, Hollywood.

(END VIDEOTAPE)

COSTELLO: And stay with CNN for more on Moore - Michael Moore that is. The filmmaker will be live in our 10 a.m. Eastern hour.

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

The Olympic doping scandal claims yet another victim, this one resulting in a lifetime ban for an Olympic star sprinter. Take this proposal, or else. North Korea delivers an ominous threat. We'll take you live to Beijing.

And a horrific accident in Iran. Hundreds are dead and injured. We'll get an update.

This is DAYBREAK for Friday.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNNfn CORRESPONDENT: Billions and billions. That's how many people McDonald's claims to have served. Even so, it's still not the biggest restaurant chain in the country. That title goes to Subway. The chain has over 20,000 franchises pushing low-fat and low-carb sandwiches, and it recently topped Entrepreneur magazine's list of best franchises to own.

Yet despite the honors, Subway still trails Mickey D's in one important category: profits.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired June 25, 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: The sounds of war in Iraq; fighting in Fallujah.
It is Friday, June 25. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date right now.

President Bush heads to Ireland today for a Saturday summit with leaders of the European Union. The president will then travel to the NATO summit in Turkey.

Sources tell CNN that Florida Congressman Porter Goss may soon be the president's choice for CIA director. Goss, a Republican, is chairman of the House Intelligence Committee. George Tenet resigned as CIA director, effective in mid-July.

At least 90 people are dead this morning following a tragic crash in southeastern Iran. Another 114 people were injured. It happened when a gas truck hit six passenger buses that were stopped at a police inspection site. Many of the dead are women and children.

In money news, Congress is looking at billing practices of the nation's hospitals. Experts say uninsured patients are charged as much four times more than those with insurance, and are also subject to more severe collection techniques.

In culture, there's plenty to do in Denver when you're single. Forbes lists the Denver-Boulder area as the place - as the best place to be unattached. The Baltimore-Washington area is ranked second, just ahead of Austin, Texas. Pittsburgh comes in last.

(LAUGHTER)

In sports, Venus Williams is the first major upset at the all- England club. Williams lost in straight sets to 30th-ranked Karolina Sprem. It's Venus' earliest exit from Wimbledon since 1997 - Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

Back on Wednesday, had some severe weather across parts of Wisconsin. Here's the aftermath, pictures yesterday, some aerials there from our affiliate WTMJ. They are still picking up the pieces. One person did lose his life, found in a cornfield after his home was destroyed. That's the power of this thing. Also picked up semis, threw them around as well. So don't really know yet what the value of this storm, what F-scale it was. But I'm sure we'll find out soon. (WEATHER REPORT)

COSTELLO: Two summit meetings in five days. That's President Bush's schedule as leaves this morning for Shannon, Ireland. In Shannon, the president will meet tomorrow with the European Commission, which is the executive arm of the European Union. And then President Bush flies to Ankara, Turkey, to meet with the Turkish president and prime minister. And from there, he'll go on to Istanbul for the NATO summit meeting that opens on Monday.

And as I just told you, in advance of his arrival in Ireland, President Bush appeared on Irish television, telling an interview - telling an interviewer that the world is now a safer place. The president talked about Iraq, about the Israeli-Palestinian conflict and about terrorism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I do believe the world is a safer place and becoming a safer place. I know that a free Iraq is going to be a necessary part of changing the world. Listen, people - people join terrorist organizations because there's no hope and there's no chance to raise their families in a - in a - in a peaceful world where there is not freedom. And so the idea to promote freedom, and at the same time protect our security. And I do believe the world is becoming a better place, absolutely.

(END VIDEO CLIP)

COSTELLO: Four thousand police officers and 2,000 troops will be on patrol in Shannon, Ireland, to control expected demonstrations.

And although you didn't see it from that interview, the president's interview with that Irish interviewer was quite contentious at times. Want to talk more about that with our senior international editor, David Clinch.

DAVID CLINCH, CNN SR. INTERNATIONAL EDITOR: Yes. Good morning, Carol.

It was a little bit testy. There were a couple things, though, that we should say about that. There's a different interviewing style I would say in Ireland and Britain than perhaps President Bush is used to here. The interviewer interrupting him a couple of times. That definitely bothered him.

But on the other hand, he was also clearly upset by some of the lines of questioning and some of the questioning of what he was saying about Iraq and the war on terror. Specifically, in defending his administration's actions in Iraq and the war on terror. He mentioned the fact that, in his view, most of Europe had supported his action in Iraq. Now, from an Irish point of view and from many people's point of view in Europe, that was not the case and perhaps still is not the case.

And so the front page of the Irish papers this morning making a point of his comment in that regard. Not exactly slamming him for that, but definitely making a point that his point of view is in some ways different from the reality on the ground. There is - there is not a great welcome awaiting President Bush in Ireland today.

You can see that is the front page of the paper there today as well. On the right-hand side, pictures of a line of tanks heading off -- probably the entire Irish army heading off down to the castle where he, President Bush, and the other European leaders will be staying for this summit on Saturday. Security is a big issue, not just because of terror threats, of which there are none specific that we know of, but also, as we were saying about the welcome that he is likely to receive there, the definite prospect of anti-Bush demonstrations.

COSTELLO: And those demonstrations are supposed to be quite large, aren't they?

CLINCH: Yes, well, the people organizing them hope they will be. There are some demonstrations planned for the capital, Dublin, which is a long way away from where he will be today. And then around the time of the summit meeting Saturday in this luxurious hotel out in the west of Ireland. This is all making me very homesick here, seeing these beautiful pictures.

But there are planned demonstrations. We'll see how big they are.

One of the key things, though: This is about the image of President Bush and how he can persuade people. In this interview last night, he made one of those gaffes that he makes occasionally - I don't know if we can listen to the sound - where he commented about the growth of democracy around the world, if we can listen to that soundbite. I'm sorry, I'm told we don't have it.

Nevertheless...

(CROSSTALK)

CLINCH: He was talking about growth of democracy in the Middle East and beyond and talking about democracy growing in Afghanistan, and mentioned the fact that there is a democracy in Pakistan. Well, I think many people in Pakistan and beyond would argue that the military in control of the country does not equate to a democracy.

It may have been a misstatement. Who knows? But the point is, it plays into this unfortunate image that President Bush has for many people in Europe - not all, but some people, at least in Europe - that he is prone to gaffes and also perhaps out of touch in some ways.

In his statement about the support from most of Europe, out-of- touch with the people - with the way people view him there. So he has an image problem, but really it's about support: political and military support in Iraq, the war on terror and beyond. And he has quite a mountain to climb tomorrow at the summit. The Irish prime minister, Bertie Ahearn, in a key role as head of the EU right now, playing a very important role trying to bring everybody there together. COSTELLO: Well, we'll see if it works. Thank you. David Clinch.

Five days and counting until the handover of sovereignty in Iraq. Here is the latest in our situation report this morning.

The Senate Armed Services Committee will hold a hearing on the transition of power in Iraq. Deputy Defense Secretary Paul Wolfowitz and Joint Chiefs of Staff chairman, General Richard Myers, will testify.

More American troops may be deployed to Iraq. U.S. military planners are preparing to send possibly as many as 15,000 additional ground forces to Iraq if violence there increases.

Already this morning were (ph) new clashes that (ph) broken out between insurgents and U.S. forces in Fallujah. Explosions were heard outside of that rebel stronghold.

And U.S. troops are tightening their security ring around Baghdad. It follows a day of carnage across the country.

We take you live to Baghdad now and Brent Sadler to talk about the day after.

Hello, Brent.

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

Yes, indeed, the air around Baghdad is thick with tension after the attacks 24 hours ago in five major Iraqi cities, from Mosul in the north, to Baqubah, Ramadi, as well as Baghdad and Fallujah as well.

Now what did this mean? It did mean a significant departure in the kind of hit-and-run tactics we've seen as late - of late. As well as the suicide bombings that destroyed police stations, most of the attacks were aimed at destroying and intimidating the Iraqi security authorities that are supposed to take more responsibility for security after the June the 30th handover.

We also saw the insurgents coordinating to some extent their attacks. And in Baqubah, in particular, one of the heaviest places where there were clashes between insurgents and U.S. forces, we did see insurgents attempting to stockpile weapons and to hold ground. And that's why the United States military called in heavy support, pushing in armor and calling up airstrikes to knock out those insurgent strongholds.

In Fallujah today, a much quieter situation. There has been some loss of life overnight in terms of the Iraqis. Nothing from the U.S. side. Three U.S. soldiers killed 24 hours ago in that intense action. Fallujah much quieter, but certainly atmosphere in and around Baghdad tense. Security firms here warning foreign workers to not set foot outside their compounds, as they expect the possibility of a major offensive in these coming days before the handover to Iraqi sovereignty - Carol. COSTELLO: Brent Sadler, live in Baghdad this morning, thank you.

The latest poll numbers do not bode well for what President Bush once called "a war of necessity." A new CNN/USA Today/Gallup poll shows a majority of Americans, 54 percent, say it was a mistake to send troops to Iraq. That's up from 41 percent earlier this month. It's the first time since the war that a majority have expressed this negative view. And 55 percent of Americans now say that the war with the Iraq has not made the U.S. safer from terrorism. That's a significant shift from last December, just after the capture of Saddam Hussein.

Later today, we conclude our weeklong series with "TAKING THE AMERICAN PULSE." Jonathan Mann holds a live town hall meeting with a panel of guests who have tried to influence public opinion about the U.S. role in Iraq and the Middle East. A studio audience will include military families and peace activists. You can see it 1 p.m. Eastern, 10 a.m. Pacific right here on CNN.

I'm going to have to take a pause for a second because I have to cough. So I'm going to take a drink of my coffee.

Thank you. I apologize.

Here are some stories making news "Across America" this Friday.

Eight Los Angles police officers involved in the beating of a suspect during his arrest have been taken off the street and placed behind desks. Among those under investigation is John Hatfield. He's been identified as the officer who repeatedly hit the suspect with a flashlight. Police Chief William Bratton says it appears the officers acted inappropriately, and L.A. Mayor Jim Hahn says any officers who acted unlawfully will be prosecuted.

Todd Bertuzzi of the Vancouver Canucks is being charged with assault fort his vicious hit on the Colorado Avalanche's Steve Moore. Bertuzzi broke Moore's neck when he hit him from behind in a game back in March. He's expected to appear in court on July 9 to answer the charge. Bertuzzi remains under an indefinite suspension by the NHL.

And charges are expected to be filed this morning in the shooting of nine people at a crowded a fireworks festival in downtown Detroit. Two of the victims remain in critical condition this morning. Police say they got a flood of tips from the public, which led them to a suspect in the shooting.

There's much more ahead for you on CNN's DAYBREAK.

A detective does the defense a big favor in the Scott Peterson double-murder trial.

We'll get a live report on a horrific accident in Iran after a tanker truck full of gasoline careens out of control.

And some lawyers are livid after supposedly secret testimony gets leaked about steroid use by some top American athletes. This is DAYBREAK for Friday.

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COSTELLO: Testimony causes trouble for prosecutors in the Scott Peterson trial. The credibility of their case was dealt a blow after admission by a lead detective.

CNN's Rusty Dornin has details from Redwood City, California.

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RUSTY DORNIN, CNN CORRESPONDENT (voice-over): It's a key piece of the prosecution's theory: Laci Peterson never knew about or saw her husband Scott's boat, which was stored at his warehouse.

But on the stand, one of the lead detectives, Al Brocchini admitted he omitted part of an interview with a woman who claims Laci Peterson was at the warehouse and asked to use a restroom there on the day before she disappeared.

Some legal observers say the credibility of investigators may be the big issue here.

MICHAEL CARDOZA, LEGAL ANALYST: This is unbelievable. How is this jury going to believe one more thing any prosecution witness says in this case? He writes a police report from his dictation and leaves a major paragraph out?

DORNIN: The omission also plays into the defense theory that police zeroed in on Scott Peterson as the only suspect in the killing of his pregnant wife, ignoring leads that may have implicated others.

Defense attorney Mark Geragos also implied that the hair found in the pliers on the bottom of Scott Peterson's boat might have been left there by Laci during that visit. Prosecutors claim the only way the hair could be there is because Peterson ferried his wife's body out to San Francisco Bay after she was killed.

(on camera): Next week, prosecutors will have a chance to try and repair the damage by asking their own questions of Detective Al Brocchini. But not until defense attorney Mark Geragos has finished his cross-examination.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COSTELLO: Your news, money, weather and sports. It is 5:16 Eastern. Here's what's all new this morning.

The U.S. and South Korea are playing down North Korea's threat to test a nuclear weapon. The North Koreans issued the warning at the six-nation talks on Pyongyang's nuclear program.

Ground controllers scrubbed a spacewalk outside the international space station when one of the astronauts' oxygen bottles sprung a leak. The crew will try again soon to replace a circuit breaker outside of the station.

In money news, the Nike swoosh beats the Street. The world's biggest athletic shoemaker posted a 23-percent surge in income for its fourth quarter. Nike easily did better than Wall Street expected.

In culture, some extremely encouraging news. More people than ever are surviving cancer. The CDC suggests health officials focus on long-term care of survivors. Since 1974, the number of cancer survivors in the U.S. - in the U.S. - in the United States has tripled.

In sports, Dwight Howard of Atlanta goes to the Orlando Magic as the No. 1 pick in the NBA draft. Howard is one of eight high school players chosen in the first round.

I think you were wrong about that one, Chad.

MYERS: Yes, that doesn't seem like a logical choice when you've got Okafor up there, who was just a powerhouse. But hey, you know what? You got to take who you got to take and who you can sign too.

(WEATHER REPORT)

COSTELLO: Those are the headlines for you.

Time now to check the overseas markets to see what Wall Street investors will wake up to. For that, we head live to London and Diana Muriel.

Good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning.

Well, European markets are flat to negative this Friday. This really following on from the declines that we saw on Wall Street on Thursday, in both the Dow Jones and the Nasdaq. Traders say in London, the mood is particularly depressed after the failure of England to go through in the Euro 2004 football championships - soccer championships in Portugal last night.

What is putting some strength into the market, though - in the Swiss market - is the surprise news from Credit Suisse that the co- CEO, John Mack, is to leave the group on July the 12th. His contract will not be renewed. The company has had two CEOs. Now the other one, the Swiss banker Oswald Gruebel will be taking over as the sole CEO of the group.

Whilst this announcement was being made, the company also said that it had no plans to merge with any other bank. There had been discussion in the market that this was a possibility.

John Mack, who was described as "Mack the Knife" for his cost- cutting program that he introduced into the bank when he joined it in 2001, was a surprise departure. He's responsible for reducing costs by $3 billion and by getting rid of about a third of the workforce.

Quick look at where we are with currencies. We're seeing the Swiss franc as a safe-haven currency. Some strength in that currency today.

Back to you.

COSTELLO: Diana Muriel live from London, thank you.

Former President Bill Clinton is sharing his life story and talking politics. In an interview with CNN's Larry King, Clinton says he'd like to do some campaigning for Senator John Kerry this summer.

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BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I know John Kerry well, and I believe he would be a good president. I think he has a lot of good qualities, not just because he agrees with me, but psychologically he's well suited to be president.

He - he'd - not afraid to be around people who know more than he does about certain subjects. That's good. He's always trying to learn more and to do better. That's good. He won't punish people who sit in the Oval Office and look at him dead in the eye and say, Mr. President, I think you're wrong about this, I disagree. And that's good. Especially now.

(END VIDEO CLIP)

COSTELLO: Clinton's new autobiography, "My Life," has sold over half a million copies since its release on Tuesday.

Spotlight on film. "Fahrenheit 9/11" takes center stage, but other documentaries are also grabbing headlines. We'll show you who's standing up and taking notice.

This is DAYBREAK.

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COSTELLO: Welcome back to DAYBREAK.

"Fahrenheit 9/11," the award-winning and controversial Michael Moore documentary opened this week in New York to a packed house. "Fahrenheit" may be riding the crest of a documentary wave, as CNN's Jen Rogers reports from Hollywood.

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JEN ROGERS, CNN CORRESPONDENT (voice-over): Most documentaries don't get a star-studded premiere like "Fahrenheit 9/11." But that could be changing, as Hollywood turns its attention to the often- ignored films.

PAUL DERGARABEDIAN, EXHIBITOR RELATIONS: I think we're going to see documentary film become the new hot genre. I don't think we're going to see them open with 20, $30 million, but who knows? With "Fahrenheit 9/11," it could potentially open with over $10 million in box office.

ROGERS: And that, in turn, could open the door for more documentaries to gain studio support. The key for Hollywood: the films are cheaper to make with new advance in technology, and moviegoers seem more willing to embrace non-fiction fare, as documentaries shed their image as boring, educational movies targeted to a narrow audience.

UNIDENTIFIED MALE: I love documentary because it's real-life event.

UNIDENTIFIED FEMALE: Usually, I hope to learn something.

ROGERS: Hollywood has learned recently that documentaries can be commercial as well as critical successes. Of the top five highest- grossing documentaries of all time, three have been released in the last 14 months: "Winged Migration," "Supersize Me," and "Tupac: Resurrection."

More than just informative, this new wave of films is sometimes funny, often controversial, but at its heart entertaining - the key to box-office success.

UNIDENTIFIED MALE: It's pretty clear that documentaries are growing in popularity.

ROGERS: Gregory Lamaly (ph) runs a 30-theater chain in Southern California.

UNIDENTIFIED MALE: The fact is, is that independent films in general are really booming right. So a lot of it does have to do with the accessibility of the screens.

ROGERS: Accessibility made possible by the multiplexing of America. With more theaters willing to give up a few screens to smaller films, profits have soared. In 1998, documentaries grossed $7.6 million at the U.S. box office. Last year, that number hit nearly $50 million.

(on camera): And that figure doesn't even take into account the home-video market, where many documentaries make up the bulk of their sales.

Jen Rogers, CNN Financial News, Hollywood.

(END VIDEOTAPE)

COSTELLO: And stay with CNN for more on Moore - Michael Moore that is. The filmmaker will be live in our 10 a.m. Eastern hour.

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

The Olympic doping scandal claims yet another victim, this one resulting in a lifetime ban for an Olympic star sprinter. Take this proposal, or else. North Korea delivers an ominous threat. We'll take you live to Beijing.

And a horrific accident in Iran. Hundreds are dead and injured. We'll get an update.

This is DAYBREAK for Friday.

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GERRI WILLIS, CNNfn CORRESPONDENT: Billions and billions. That's how many people McDonald's claims to have served. Even so, it's still not the biggest restaurant chain in the country. That title goes to Subway. The chain has over 20,000 franchises pushing low-fat and low-carb sandwiches, and it recently topped Entrepreneur magazine's list of best franchises to own.

Yet despite the honors, Subway still trails Mickey D's in one important category: profits.

(END VIDEOTAPE)

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