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CNN Live At Daybreak

Defiant Saddam Rejects Court, Charges

Aired July 02, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: A day after Saddam Hussein's day in court, blasts in Baghdad.
It is Friday, July 2. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now:

Rocket attacks rock central Baghdad. You are looking at new pictures in to us just a short time ago. This is the vehicle from which the attacks were launched. The targets: hotels where international journalists and contractors stay. No reports of casualties.

In neighboring Turkey, a car bomb killed three people. These pictures also just in to us. Police say the attack was aimed at a local governor, who was unhurt in the blast.

In money news, the Labor Department releases its assessment of the U.S. job market just about three hours from now. Economists estimate about a quarter million jobs were created in June, with the unemployment rate holding at 5.6 percent.

In culture, groundbreaking at Ground Zero. Construction of the new World Trade Center begins Sunday, on the Fourth of July. The highlight of the ceremony will be the laying of stone from the Adirondack Mountains.

In sports, Coach K to L.A.? Duke head basketball coach - the Duke head basketball coach met with the Los Angeles Lakers general manager, Mitch Kupchak. The Lakers spokesman says the team is considering several other candidates to replace Phil Jackson - Chad.

CHAD MYERS, CNN METEOROLOGIST: You didn't try that name, huh?

COSTELLO: No, I did not. Do you know how to pronounce it?

MYERS: It's Krzyzewski.

COSTELLO: K-R-Z-Y-Z-E-W-S-K-I.

MYERS: It doesn't even start with K, theoretically. It's Krzyzewski.

COSTELLO: Thank you, Chad. MYERS: You're welcome. Anyway -- but now they got two guys they can't pronounce: the general manager and the coach.

(WEATHER REPORT)

COSTELLO: Rocket attacks in central Baghdad this morning.

Here's our "Situation Report" for you:

Insurgents fire several rockets today, one of them hitting the Sheraton hotel where many journalists and civilian contractors stay. Minor damage, no injuries reported. We're going to have a live report for you at the half hour.

Two Turkish hostages have been freed after promising to stop working for U.S. forces in Iraq. On Tuesday, insurgents freed three other Turkish hostages.

And Jordan's King Abdullah says he would be willing to send troops to Iraq if asked by the country's new interim government. If the king does send troops, Jordan would become the Arab country to take such a step.

The White House says President Bush wants a televised replay of Saddam Hussein being arraigned. The administration has been very low- key in its reaction to the court proceeding -- and there is a reason for that.

CNN's Bob Franken has more for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): The cliche "perception as reality" has real meaning here. The United States must battle with perception that instead of an Iraqi legal proceeding, the U.S. is running the show.

ADAM ERELI, STATE DEPARTMENT SPOKESMAN: This is an Iraqi process, managed by Iraqis according to Iraqi laws, according to Iraqi procedures. It is Iraqis judging Iraqis.

FRANKEN: But the Americans are heavily involved. U.S. lawyers helped draft the rules for the war-crimes tribunal. The United States is spending $75 million and has about 50 advisers from the Justice Department, FBI, other U.S. agencies teaching Iraqis how to gather evidence and run the prosecution.

Some might regard that as an inherent contradiction. But the U.S. wants to make sure Saddam is convicted only after what the world perceives as a fair trial.

WILLIAM COHEN, FORMER DEFENSE SECRETARY: This should not have the appearance or the reality of a kangaroo court.

FRANKEN: The lawyer who represented Manuel Noriega, deposed by the United States as Panama's leader and still in a U.S. prison, believes fairness demands that Saddam get an international trial.

FRANK RUBINO, FMR. NORIEGA ATTORNEY: I think it would be most important that the trial be moved to the world court at the Hague.

FRANKEN: That's where deposed Bosnian leader Slobodan Milosevic has been facing war-crime charges. Former State Department lawyer Paul Williams, who worked on that case, says this is different.

PAUL WILLIAMS, AMERICAN UNIV. LAW SCHOOL: They're coming into their own sovereignty, post-Saddam. And it's going to very, very important for the interim government, for the people of Iraq to demonstrate that they have control over the former regime.

FRANKEN: A former U.S. war-crimes ambassador thinks Saddam should have been allowed an attorney at his arraignment even though Iraqi law did not require that.

DAVID SCHEFFER, FMR. U.S. AMB. FOR WAR CRIMES: They have to be extremely careful and lean over backwards to ensure that he has all of the due-process rights of a defendant now.

FRANKEN (on camera): If the appearance of legitimacy is so important, then in the process of discrediting Saddam Hussein, the new Iraqi government leaders must be very careful not to discredit themselves.

Bob Franken, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Saddam Hussein's wife has hired a team of 20 lawyers to represent Saddam Hussein. Some of them are Westerners.

Here's one of the lawyers, telling CNN that under Iraqi law, Saddam Hussein is still president.

(BEGIN VIDEO CLIP)

TIM HUGES, SADDAM HUSSEIN'S ATTORNEY: The current Iraqi government, which seeks to put Saddam Hussein on trial, is a government put in place by a coalition, which has seized the power of the country on an illegitimate basis. Therefore, we do not recognize on Saddam's behalf that he is no longer the president of Iraq.

(END VIDEO CLIP)

COSTELLO: Saddam Hussein's trial, by the way, is not expected to get under way before next year. But when he appeared, he did look thin and tired looking.

But he was as defiant as ever. That's the Saddam Hussein we have seen in court so far. I don't think our next guest is surprised that there's still a lot of fight left in Saddam. He describes the former dictator as a shrewd survivor.

Simon Henderson wrote a biography of Saddam Hussein. He joins us live from London with some insights.

Good morning.

SIMON HENDERSON, SADDAM BIOGRAPHER: Good morning.

COSTELLO: So now that we've had a day to digest his appearance, what is your lasting impression?

HENDERSON: My lasting impression is that Saddam was at first perplexed when he arrived in court, but then regained some confidence. However, he then found himself arguing with the judge. And for the first time in his life, or recent life probably, he found that the judge was answering him back. And this was a very unusual position for somebody who, in his own words, still regards himself as the president of Iraq.

COSTELLO: And he really still believes that?

HENDERSON: Yes. I suppose you can make an intellectual or even a legal case that he's still the president of Iraq. But to the appearance that he gave yesterday was that he was basing his view that he's still the president on the delusion, because he justified all the charges put against him, saying, So what? I was the president.

And at which point, he has failed to understand what is going on. This is an important piece of law which he's never been aware of, which is that it's the people of the country who represent the country. He thought, as the president, he was the sole arbiter of anything which went on in Iraq. Now the people of Iraq are holding him accountable for those crimes and he just doesn't get it.

COSTELLO: Well, you did call him though, a shrewd survivor. Might he change his strategy? What might he do?

HENDERSON: Well, I think part of that depends upon the nature of the legal advice he gets. And although he was told yesterday he had the right to an defense attorney, he wasn't told whether he would be allowed to have the gang of 20 or so lawyers being assembled in Amman, Jordan, by his daughter, Raghad there, who will no doubt want to come into Iraq and argue every little twist to make the trial against him into a farce.

I think that he will try and drag it out. I think he's isolated, so this notion that it's Bush who's the criminal, which is one of the statements he made yesterday, is perhaps another part of the delusion.

But I suspect, as times goes on, and provided the judicial authorities of the new Iraq don't lose control of the situation, he will become even more detached from reality. And the world will see him not only as the criminal he was in the sense of all the dreadful crimes he committed against the people of Iraq, but also as somebody who wasn't in touch with reality.

(CROSSTALK)

HENDERSON: ... they want back. COSTELLO: I'm sorry to interrupt you, but, you know, I have read reports that even in his last days in office, he wasn't quite right; he wasn't really living in reality.

Have you heard that?

HENDERSON: Yes. I've always thought that Saddam was a good tactician. I've always looked at him as a fox-like street fighter.

But if he's a good tactician, he's a lousy strategist. And he made a mistake when he invaded Iran in 1980. He made another mistake when he invaded Kuwait. And then he made another mistake by getting into what he thought was a game of bluff with the United States over weapons of mass destruction, and not realizing the United States wasn't bluffing.

COSTELLO: Well, we'll see what happens now. Simon Henderson, joining us live from London, thank you for joining DAYBREAK this morning.

Stay right here for CNN's "AMERICAN MORNING." Soledad and Bill will be talking with one of Saddam Hussein's attorneys for a look at the long legal road. That's coming up ahead in the 8:00 Eastern hour.

And here are some stories making headlines "Across America" this Friday.

In Texas, three people have died after receiving organs donated from a man who died of rabies. Health officials say it's the first known case of rabies being transmitted through a transplant -- excuse me -- I apologize.

We're going to go to break for a second while I compose myself. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Once again, I apologize. I have a little bit of a cold, so I promise it won't happen again. Of course, I shouldn't promise that, should I? Well, let's get on with the news now.

Once again, Bill Cosby isn't going for laughs. The comedian has more tough words for the African-American community. This time, Cosby spoke at Jesse Jackson's Rainbow/PUSH Coalition conference in Chicago. He says it's important that children are taught not to degrade each other with racial slurs.

Here's more.

(BEGIN VIDEO CLIP)

BILL COSBY, COMEDIAN: The more you invest in that child, the more you're not going to let some CD tell your child how to curse and how to say the word (EXPLETIVE DELETED). This is an accepted word, you so hip with (EXPLETIVE DELETED) but you can't even spell it.

(END VIDEO CLIP)

COSTELLO: Cosby (UNINTELLIGIBLE) some criticism after making similar comments back in May.

Your news, money, weather and sports. It is 5:14 Eastern. Here's what's all-new this morning:

Secretary of State Colin Powell talks nukes with North Korea's foreign minister. The two met at the Asian Security Conference in Indonesia. Multinational talks earlier this month produced no real results.

It looks like national elections in Afghanistan will be put off again. They were originally scheduled for June, but were moved to September. Now a top government official says voting might not happen until October. The U.N. says militia still need to be disarmed.

In money news, Qwest Communications is making a deal with wireless provider with Verizon worth more than $400 million. Qwest will see equipment and licenses to Verizon as part of a plan to open a nationwide network.

In culture, it was 40 years ago today that President Lyndon Johnson signed the Civil Rights Act into law. The Congressional Black Caucus is planning a ceremony on the steps of the Lincoln Memorial to remember the event.

And in sports, Lance Armstrong begins the quest tomorrow for his sixth straight Tour De France title. But today, a court will rule on Armstrong's appeal against publishers of a book that alleges he used performance-using drugs during some of his previous tours -- Chad.

MYERS: You all right, Carol?

COSTELLO: Yes.

MYERS: All right.

COSTELLO: Just had a little coughing attack.

MYERS: You got to hang in there because I don't do news, you know.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time now to check the overseas markets to see what may be on tap for Wall Street later today. For that, we had live to London and Mallika Kapur.

Good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: Morning to you. Well, we're about two hours into the trading day here in Europe, and as you can see it's a negative picture for the European bosses (ph). All the main markets quite a bit lower at the moment. The markets here, of course, under pressure because of the losses we saw on Wall Street in overnight trading. The Dow, the Nasdaq and the S&P -- all the main markets on Wall Street were down about 1 percent and that is affecting the mood here in Europe today.

One of the other factors that is going to affect and has been affecting the financial markets over the last couple of days is the price of oil. As you can see here, U.S. light crude down a bit, down about 23 cents. And Brent crude down about half a percent, down around the same amount, about 22 cents as well.

So oil prices a little bit lower today, but remember that these oil prices have rallied quite sharply. In fact, U.S. light crude added about $3 just in the last two days of trade on renewed concerns about global oil supplies.

Sticking with the oil sector, I want to tell you a little about Yukos. That's the Russian oil giant. Yukos shares opened down about 12 percent at the start of the trading day in Moscow. It has come off those lows a little bit -- it's currently down just about 4 percent. But Yukos shares slipped for two reasons: the company is saying that its assets have been frozen by a Moscow court, and this -- and that could threaten Yukos' oil production from -- from next week.

Also, there are reports in Moscow that Yukos have been slapped by yet another tax bill and that has affected Yukos' share price.

Back to you.

COSTELLO: Mallika Kapur, live from London, thank you.

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

In Texas, three people have died after receiving organs donated from a man who died of rabies. Health officials say it's the first known case of rabies being transmitted through a transplant. Doctors don't normally test for rabies in donated organs since only about three people contract the disease in the United States each year.

A California teenager suffered second-degree burns after her cell phone exploded in her pocket. At first, witnesses thought fireworks were going off until they saw smoke rising from her pants. The fire was quickly doused, and the girl was taken from to the hospital. No word on why her cell phone exploded, though.

State of Maryland has filed suit against the makers of Kool cigarettes. The Maryland attorney general says Brown & Williamson tobacco is targeting teenagers with their new hip hop add campaign. But the company says the promotion is only conducted in bars where teens are not permitted.

Can the summer movie season be saved? After some poor showing on the big screen, will a webbed wonder work box-office magic? We'll have details for you ahead.

(COMMERCIAL BREAK)

COSTELLO: "Spiderman 2" set an opening-day record on Wednesday with $40.5 million. That topped the previous of just over $39 million, which was set by the first "Spiderman" movie.

So, it's no wonder that industry experts are counting on a little web magic to save the summer-movie season.

CNN's Jen Rogers has a look for you.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT (voice-over): Summer movies are here again, hoping to lure audiences into their web.

The summer, which in holiday time runs from May through Labor Day, is critical, driving more than 40 percent of ticket sales. This year, the box office has turned in a lackluster performance, with "Van Helsing" and "Around the World in 80 Days," just to name two not living up to the hype.

Ticket sales are up roughly 4 percent over last year.

RUSS LEATHERMEN, MR. MOVIEFONE: Well, the movie season so far as far as moviegoers are concerned has been pretty lame, actually. We had "Shrek 2" early on, which was fantastic -- probably the best movie of the summer so far, up until "Spiderman 2" -- but the rest of the movies didn't really deliver the goods.

ROGERS: And that's not good for business. While total box- office grosses are up, thanks to higher ticket prices, the actual number of tickets being sold is down from two years ago. It's a trend some believe may be reversed by a superhero.

PAUL DEGARABEDIAN: No question that having "Spiderman 2" in the release schedule where it is, opening at the beginning of July, is going to be huge for the business.

ROGERS: More momentum could come from an unlikely segment of the movie-going audience.

DEGARADEDIAN: We're looking at the demographics, and it looks like -- especially when you see the number of films this summer that appeal to that over 30, over 40 audience -- that that segment of the audience is maybe the fastest-growing right now.

ROGERS: The calendar is still crowded with traditional popcorn fare. Forty-four major motion pictures in all: "Anchorman," "I, Robot," "A Cinderella Story," "Catwoman," and "Collateral," all vying for the most coveted demographic title -- crossover hit.

Jen Rogers, CNN Financial News, Hollywood.

(END VIDEOTAPE) COSTELLO: And coming up in the next hour of DAYBREAK, Tom O'Neill of "In Touch" weekly magazine will take a closer look at the movies coming to a theater near you this weekend.

And here's what's all-new in our next half-hour:

Singing is believing: a high-tech device is letting doctors learn about babies' behavior while still in the womb. More on that story ahead.

And the United States and North Korea talks nukes in Jakarta. We'll have a live report for you.

But first, the morning after Saddam's court hearing, more explosions rattle Baghdad. We're going to take you there live too.

This is DAYBREAK for Friday.

(COMMERCIAL BREAK)

COSTELLO: More blasts in Baghdad, but unfortunately we have seen worse.

It is Friday, July 2. This is DAYBREAK.

And good morning to you. Welcome to the second half-hour of DAYBREAK. From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now:

Rocket attacks in central Baghdad score a direct hit on the Sheraton Hotel, where many Western journalists and contractors are staying. No casualties reported, and there is only minor damage to the hotel.

The Coast Guard orders four ships from other countries out of the Port of Miami and expels another. The ships failed inspection under new worldwide security regulations that have just gone into effect.

In money news, the recording industry is singing a happy tune. Album sales in the United States are running 7 percent of this time last year. Analysts say the music biz is on track for its best numbers in three years.

In culture, "Spiderman 2" has snagged a box-office record. The superhero sequel took in $40.5 million bucks on its first day in theaters -- and that was on a Wednesday, a typically slow day for the movies.

In sports, a 17-year-old tennis sensation from Siberia has knocked Lindsey Davenport out of Wimbledon. Teenager Maria Sharapova will face Serena Williams in the women's finals -- Chad.

MYERS: Carol, have I told you how nicely you say Wimbledon? Because everybody puts a "T" in that name. And it doesn't have one. (WEATHER REPORT)

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 July 2, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A day after Saddam Hussein's day in court, blasts in Baghdad.
It is Friday, July 2. This is DAYBREAK.

And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now:

Rocket attacks rock central Baghdad. You are looking at new pictures in to us just a short time ago. This is the vehicle from which the attacks were launched. The targets: hotels where international journalists and contractors stay. No reports of casualties.

In neighboring Turkey, a car bomb killed three people. These pictures also just in to us. Police say the attack was aimed at a local governor, who was unhurt in the blast.

In money news, the Labor Department releases its assessment of the U.S. job market just about three hours from now. Economists estimate about a quarter million jobs were created in June, with the unemployment rate holding at 5.6 percent.

In culture, groundbreaking at Ground Zero. Construction of the new World Trade Center begins Sunday, on the Fourth of July. The highlight of the ceremony will be the laying of stone from the Adirondack Mountains.

In sports, Coach K to L.A.? Duke head basketball coach - the Duke head basketball coach met with the Los Angeles Lakers general manager, Mitch Kupchak. The Lakers spokesman says the team is considering several other candidates to replace Phil Jackson - Chad.

CHAD MYERS, CNN METEOROLOGIST: You didn't try that name, huh?

COSTELLO: No, I did not. Do you know how to pronounce it?

MYERS: It's Krzyzewski.

COSTELLO: K-R-Z-Y-Z-E-W-S-K-I.

MYERS: It doesn't even start with K, theoretically. It's Krzyzewski.

COSTELLO: Thank you, Chad. MYERS: You're welcome. Anyway -- but now they got two guys they can't pronounce: the general manager and the coach.

(WEATHER REPORT)

COSTELLO: Rocket attacks in central Baghdad this morning.

Here's our "Situation Report" for you:

Insurgents fire several rockets today, one of them hitting the Sheraton hotel where many journalists and civilian contractors stay. Minor damage, no injuries reported. We're going to have a live report for you at the half hour.

Two Turkish hostages have been freed after promising to stop working for U.S. forces in Iraq. On Tuesday, insurgents freed three other Turkish hostages.

And Jordan's King Abdullah says he would be willing to send troops to Iraq if asked by the country's new interim government. If the king does send troops, Jordan would become the Arab country to take such a step.

The White House says President Bush wants a televised replay of Saddam Hussein being arraigned. The administration has been very low- key in its reaction to the court proceeding -- and there is a reason for that.

CNN's Bob Franken has more for you.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): The cliche "perception as reality" has real meaning here. The United States must battle with perception that instead of an Iraqi legal proceeding, the U.S. is running the show.

ADAM ERELI, STATE DEPARTMENT SPOKESMAN: This is an Iraqi process, managed by Iraqis according to Iraqi laws, according to Iraqi procedures. It is Iraqis judging Iraqis.

FRANKEN: But the Americans are heavily involved. U.S. lawyers helped draft the rules for the war-crimes tribunal. The United States is spending $75 million and has about 50 advisers from the Justice Department, FBI, other U.S. agencies teaching Iraqis how to gather evidence and run the prosecution.

Some might regard that as an inherent contradiction. But the U.S. wants to make sure Saddam is convicted only after what the world perceives as a fair trial.

WILLIAM COHEN, FORMER DEFENSE SECRETARY: This should not have the appearance or the reality of a kangaroo court.

FRANKEN: The lawyer who represented Manuel Noriega, deposed by the United States as Panama's leader and still in a U.S. prison, believes fairness demands that Saddam get an international trial.

FRANK RUBINO, FMR. NORIEGA ATTORNEY: I think it would be most important that the trial be moved to the world court at the Hague.

FRANKEN: That's where deposed Bosnian leader Slobodan Milosevic has been facing war-crime charges. Former State Department lawyer Paul Williams, who worked on that case, says this is different.

PAUL WILLIAMS, AMERICAN UNIV. LAW SCHOOL: They're coming into their own sovereignty, post-Saddam. And it's going to very, very important for the interim government, for the people of Iraq to demonstrate that they have control over the former regime.

FRANKEN: A former U.S. war-crimes ambassador thinks Saddam should have been allowed an attorney at his arraignment even though Iraqi law did not require that.

DAVID SCHEFFER, FMR. U.S. AMB. FOR WAR CRIMES: They have to be extremely careful and lean over backwards to ensure that he has all of the due-process rights of a defendant now.

FRANKEN (on camera): If the appearance of legitimacy is so important, then in the process of discrediting Saddam Hussein, the new Iraqi government leaders must be very careful not to discredit themselves.

Bob Franken, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Saddam Hussein's wife has hired a team of 20 lawyers to represent Saddam Hussein. Some of them are Westerners.

Here's one of the lawyers, telling CNN that under Iraqi law, Saddam Hussein is still president.

(BEGIN VIDEO CLIP)

TIM HUGES, SADDAM HUSSEIN'S ATTORNEY: The current Iraqi government, which seeks to put Saddam Hussein on trial, is a government put in place by a coalition, which has seized the power of the country on an illegitimate basis. Therefore, we do not recognize on Saddam's behalf that he is no longer the president of Iraq.

(END VIDEO CLIP)

COSTELLO: Saddam Hussein's trial, by the way, is not expected to get under way before next year. But when he appeared, he did look thin and tired looking.

But he was as defiant as ever. That's the Saddam Hussein we have seen in court so far. I don't think our next guest is surprised that there's still a lot of fight left in Saddam. He describes the former dictator as a shrewd survivor.

Simon Henderson wrote a biography of Saddam Hussein. He joins us live from London with some insights.

Good morning.

SIMON HENDERSON, SADDAM BIOGRAPHER: Good morning.

COSTELLO: So now that we've had a day to digest his appearance, what is your lasting impression?

HENDERSON: My lasting impression is that Saddam was at first perplexed when he arrived in court, but then regained some confidence. However, he then found himself arguing with the judge. And for the first time in his life, or recent life probably, he found that the judge was answering him back. And this was a very unusual position for somebody who, in his own words, still regards himself as the president of Iraq.

COSTELLO: And he really still believes that?

HENDERSON: Yes. I suppose you can make an intellectual or even a legal case that he's still the president of Iraq. But to the appearance that he gave yesterday was that he was basing his view that he's still the president on the delusion, because he justified all the charges put against him, saying, So what? I was the president.

And at which point, he has failed to understand what is going on. This is an important piece of law which he's never been aware of, which is that it's the people of the country who represent the country. He thought, as the president, he was the sole arbiter of anything which went on in Iraq. Now the people of Iraq are holding him accountable for those crimes and he just doesn't get it.

COSTELLO: Well, you did call him though, a shrewd survivor. Might he change his strategy? What might he do?

HENDERSON: Well, I think part of that depends upon the nature of the legal advice he gets. And although he was told yesterday he had the right to an defense attorney, he wasn't told whether he would be allowed to have the gang of 20 or so lawyers being assembled in Amman, Jordan, by his daughter, Raghad there, who will no doubt want to come into Iraq and argue every little twist to make the trial against him into a farce.

I think that he will try and drag it out. I think he's isolated, so this notion that it's Bush who's the criminal, which is one of the statements he made yesterday, is perhaps another part of the delusion.

But I suspect, as times goes on, and provided the judicial authorities of the new Iraq don't lose control of the situation, he will become even more detached from reality. And the world will see him not only as the criminal he was in the sense of all the dreadful crimes he committed against the people of Iraq, but also as somebody who wasn't in touch with reality.

(CROSSTALK)

HENDERSON: ... they want back. COSTELLO: I'm sorry to interrupt you, but, you know, I have read reports that even in his last days in office, he wasn't quite right; he wasn't really living in reality.

Have you heard that?

HENDERSON: Yes. I've always thought that Saddam was a good tactician. I've always looked at him as a fox-like street fighter.

But if he's a good tactician, he's a lousy strategist. And he made a mistake when he invaded Iran in 1980. He made another mistake when he invaded Kuwait. And then he made another mistake by getting into what he thought was a game of bluff with the United States over weapons of mass destruction, and not realizing the United States wasn't bluffing.

COSTELLO: Well, we'll see what happens now. Simon Henderson, joining us live from London, thank you for joining DAYBREAK this morning.

Stay right here for CNN's "AMERICAN MORNING." Soledad and Bill will be talking with one of Saddam Hussein's attorneys for a look at the long legal road. That's coming up ahead in the 8:00 Eastern hour.

And here are some stories making headlines "Across America" this Friday.

In Texas, three people have died after receiving organs donated from a man who died of rabies. Health officials say it's the first known case of rabies being transmitted through a transplant -- excuse me -- I apologize.

We're going to go to break for a second while I compose myself. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Once again, I apologize. I have a little bit of a cold, so I promise it won't happen again. Of course, I shouldn't promise that, should I? Well, let's get on with the news now.

Once again, Bill Cosby isn't going for laughs. The comedian has more tough words for the African-American community. This time, Cosby spoke at Jesse Jackson's Rainbow/PUSH Coalition conference in Chicago. He says it's important that children are taught not to degrade each other with racial slurs.

Here's more.

(BEGIN VIDEO CLIP)

BILL COSBY, COMEDIAN: The more you invest in that child, the more you're not going to let some CD tell your child how to curse and how to say the word (EXPLETIVE DELETED). This is an accepted word, you so hip with (EXPLETIVE DELETED) but you can't even spell it.

(END VIDEO CLIP)

COSTELLO: Cosby (UNINTELLIGIBLE) some criticism after making similar comments back in May.

Your news, money, weather and sports. It is 5:14 Eastern. Here's what's all-new this morning:

Secretary of State Colin Powell talks nukes with North Korea's foreign minister. The two met at the Asian Security Conference in Indonesia. Multinational talks earlier this month produced no real results.

It looks like national elections in Afghanistan will be put off again. They were originally scheduled for June, but were moved to September. Now a top government official says voting might not happen until October. The U.N. says militia still need to be disarmed.

In money news, Qwest Communications is making a deal with wireless provider with Verizon worth more than $400 million. Qwest will see equipment and licenses to Verizon as part of a plan to open a nationwide network.

In culture, it was 40 years ago today that President Lyndon Johnson signed the Civil Rights Act into law. The Congressional Black Caucus is planning a ceremony on the steps of the Lincoln Memorial to remember the event.

And in sports, Lance Armstrong begins the quest tomorrow for his sixth straight Tour De France title. But today, a court will rule on Armstrong's appeal against publishers of a book that alleges he used performance-using drugs during some of his previous tours -- Chad.

MYERS: You all right, Carol?

COSTELLO: Yes.

MYERS: All right.

COSTELLO: Just had a little coughing attack.

MYERS: You got to hang in there because I don't do news, you know.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time now to check the overseas markets to see what may be on tap for Wall Street later today. For that, we had live to London and Mallika Kapur.

Good morning, Mallika.

MALLIKA KAPUR, CNN CORRESPONDENT: Morning to you. Well, we're about two hours into the trading day here in Europe, and as you can see it's a negative picture for the European bosses (ph). All the main markets quite a bit lower at the moment. The markets here, of course, under pressure because of the losses we saw on Wall Street in overnight trading. The Dow, the Nasdaq and the S&P -- all the main markets on Wall Street were down about 1 percent and that is affecting the mood here in Europe today.

One of the other factors that is going to affect and has been affecting the financial markets over the last couple of days is the price of oil. As you can see here, U.S. light crude down a bit, down about 23 cents. And Brent crude down about half a percent, down around the same amount, about 22 cents as well.

So oil prices a little bit lower today, but remember that these oil prices have rallied quite sharply. In fact, U.S. light crude added about $3 just in the last two days of trade on renewed concerns about global oil supplies.

Sticking with the oil sector, I want to tell you a little about Yukos. That's the Russian oil giant. Yukos shares opened down about 12 percent at the start of the trading day in Moscow. It has come off those lows a little bit -- it's currently down just about 4 percent. But Yukos shares slipped for two reasons: the company is saying that its assets have been frozen by a Moscow court, and this -- and that could threaten Yukos' oil production from -- from next week.

Also, there are reports in Moscow that Yukos have been slapped by yet another tax bill and that has affected Yukos' share price.

Back to you.

COSTELLO: Mallika Kapur, live from London, thank you.

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

In Texas, three people have died after receiving organs donated from a man who died of rabies. Health officials say it's the first known case of rabies being transmitted through a transplant. Doctors don't normally test for rabies in donated organs since only about three people contract the disease in the United States each year.

A California teenager suffered second-degree burns after her cell phone exploded in her pocket. At first, witnesses thought fireworks were going off until they saw smoke rising from her pants. The fire was quickly doused, and the girl was taken from to the hospital. No word on why her cell phone exploded, though.

State of Maryland has filed suit against the makers of Kool cigarettes. The Maryland attorney general says Brown & Williamson tobacco is targeting teenagers with their new hip hop add campaign. But the company says the promotion is only conducted in bars where teens are not permitted.

Can the summer movie season be saved? After some poor showing on the big screen, will a webbed wonder work box-office magic? We'll have details for you ahead.

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COSTELLO: "Spiderman 2" set an opening-day record on Wednesday with $40.5 million. That topped the previous of just over $39 million, which was set by the first "Spiderman" movie.

So, it's no wonder that industry experts are counting on a little web magic to save the summer-movie season.

CNN's Jen Rogers has a look for you.

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JEN ROGERS, CNN CORRESPONDENT (voice-over): Summer movies are here again, hoping to lure audiences into their web.

The summer, which in holiday time runs from May through Labor Day, is critical, driving more than 40 percent of ticket sales. This year, the box office has turned in a lackluster performance, with "Van Helsing" and "Around the World in 80 Days," just to name two not living up to the hype.

Ticket sales are up roughly 4 percent over last year.

RUSS LEATHERMEN, MR. MOVIEFONE: Well, the movie season so far as far as moviegoers are concerned has been pretty lame, actually. We had "Shrek 2" early on, which was fantastic -- probably the best movie of the summer so far, up until "Spiderman 2" -- but the rest of the movies didn't really deliver the goods.

ROGERS: And that's not good for business. While total box- office grosses are up, thanks to higher ticket prices, the actual number of tickets being sold is down from two years ago. It's a trend some believe may be reversed by a superhero.

PAUL DEGARABEDIAN: No question that having "Spiderman 2" in the release schedule where it is, opening at the beginning of July, is going to be huge for the business.

ROGERS: More momentum could come from an unlikely segment of the movie-going audience.

DEGARADEDIAN: We're looking at the demographics, and it looks like -- especially when you see the number of films this summer that appeal to that over 30, over 40 audience -- that that segment of the audience is maybe the fastest-growing right now.

ROGERS: The calendar is still crowded with traditional popcorn fare. Forty-four major motion pictures in all: "Anchorman," "I, Robot," "A Cinderella Story," "Catwoman," and "Collateral," all vying for the most coveted demographic title -- crossover hit.

Jen Rogers, CNN Financial News, Hollywood.

(END VIDEOTAPE) COSTELLO: And coming up in the next hour of DAYBREAK, Tom O'Neill of "In Touch" weekly magazine will take a closer look at the movies coming to a theater near you this weekend.

And here's what's all-new in our next half-hour:

Singing is believing: a high-tech device is letting doctors learn about babies' behavior while still in the womb. More on that story ahead.

And the United States and North Korea talks nukes in Jakarta. We'll have a live report for you.

But first, the morning after Saddam's court hearing, more explosions rattle Baghdad. We're going to take you there live too.

This is DAYBREAK for Friday.

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COSTELLO: More blasts in Baghdad, but unfortunately we have seen worse.

It is Friday, July 2. This is DAYBREAK.

And good morning to you. Welcome to the second half-hour of DAYBREAK. From the CNN global headquarters in Atlanta, I'm Carol Costello.

Here are the latest headlines for you now:

Rocket attacks in central Baghdad score a direct hit on the Sheraton Hotel, where many Western journalists and contractors are staying. No casualties reported, and there is only minor damage to the hotel.

The Coast Guard orders four ships from other countries out of the Port of Miami and expels another. The ships failed inspection under new worldwide security regulations that have just gone into effect.

In money news, the recording industry is singing a happy tune. Album sales in the United States are running 7 percent of this time last year. Analysts say the music biz is on track for its best numbers in three years.

In culture, "Spiderman 2" has snagged a box-office record. The superhero sequel took in $40.5 million bucks on its first day in theaters -- and that was on a Wednesday, a typically slow day for the movies.

In sports, a 17-year-old tennis sensation from Siberia has knocked Lindsey Davenport out of Wimbledon. Teenager Maria Sharapova will face Serena Williams in the women's finals -- Chad.

MYERS: Carol, have I told you how nicely you say Wimbledon? Because everybody puts a "T" in that name. And it doesn't have one. (WEATHER REPORT)

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